Last hour buying helped Indian
equity benchmarks to end the Friday's trading session on higher note, with
Sensex and Nifty garnering gains of around 0.40% each. The start of the day was
positive, amid reports that the Reserve Bank of India (RBI) has injected a
total liquidity of Rs 2.98 lakh crore in the market in 2018-19. The First
Bi-monthly Monetary Policy Statement, 2019-20 stated that from a daily net
average surplus of Rs 27,928 crore during February 1-6, 2019, systemic
liquidity moved into deficit during February 7-March 31, reflecting the
build-up of government cash balances. But, key indices turned volatile during
middle of session, with a private report stating that after 108 economists and
former RBI Governor Raghuram Rajan, International Monetary Fund's (IMF) Chief
Economist Gita Gopinath expressed doubt over India's growth rate, saying that
there are still some issues with the way India calculates it. However, markets
erased all of their losses in last hour of the trade to settle in green
terrain, following firm European markets. Traders took encouragement with the
RBI's data showing that that banks closed fiscal 2018-19 (FY19) with robust
disbursals. The data showed that bank credit rose 13.24% to Rs 97.67 lakh crore
for the fortnight to March 29, while deposits grew by 10.03% to Rs 125.72 lakh
crore during the same period. This is the second consecutive double-digits
credit growth after the same had declined to 4.54% in FY17 at Rs 78.41 lakh
crore, which was the lowest since 1963. Some relief also came after the
Ministry of Rural Development made recommendations to the Finance Commission to
foster higher inclusive growth, equity, efficiency and transparency. The
Ministry made a case for additional resources for Rural India. Finally, the BSE
Sensex gained 160.10 points or 0.41% to 38,767.11, while the CNX Nifty was up
by 46.75 points or 0.40% to 11,643.45.
The US markets ended higher on
Friday after a series of strong bank earnings, led by JPMorgan, boosted
confidence in the US economy. JPMorgan kicked off the earnings season by
reporting record first quarter earnings and revenues that exceeded street
estimates. The better than expected results from JPMorgan partly offset some of
the recent concerns about corporate results for the quarter. JPMorgan Chief Executive James Dimon
underlined that even amid some global
geopolitical uncertainty, the US economy continues to grow, employment and
wages are going up, inflation is moderate, financial markets are healthy and
consumer and business confidence remains strong. Shares of JPMorgan rose 4.7% for their best
earnings day since the release of second quarter 2012 results. On the economic
front, reflecting another spike in prices for fuel imports, the Labor
Department released a report showing US import prices increased by more than
expected in the month of March. The Labor Department said import prices climbed
by 0.6% in March after jumping by an upwardly revised 1.0% in February. Prices
for fuel imports showed another jump, soaring by 6.4% in March after
skyrocketing by 9.7% in February. Besides, after reporting a notable
improvement in US consumer sentiment in the previous month, the University of
Michigan released a report showing sentiment has deteriorated by more than anticipated
in the month of April. The preliminary report showed the consumer sentiment
index dropped to 96.9 in April from the final March reading of 98.4. The bigger
than expected decrease by the headline index reflected less optimism about the
economic outlook, as the index of consumer expectations slid to 85.8 in April
from 88.8 in March. Dow Jones Industrial Average surged 269.25 points or 1.03
percent to 26412.30, Nasdaq gained 36.81 points or 0.46 percent to 7984.16 and
S&P 500 was up by 19.09 points or 0.66 percent to 2907.41.
Crude oil futures ended higher on
Friday as violence in Libya raised the risks to the nation's oil production and
economic data from China helped ease concerns over a slowdown in energy demand.
Risks to oil production from Libya, a member of the Organization of the
Petroleum Exporting Countries (OPEC), continue to support prices. Mustafa
Sanalla, chairman of the country's National Oil Corporation, said that Libya's
energy industry faces the worst threat since the 2011 civil war following the
latest outbreak of fighting. He added unless the problem is solved very quickly,
I am afraid this will affect our operations, and soon we will not be able to
produce oil or gas. Benchmark crude oil futures for May added 31 cents or 0.5
percent to settle at $63.89 a barrel on the New York Mercantile Exchange. June
Brent crude gained 72 cents or 1 percent to settle at $71.55 a barrel on
London's Intercontinental Exchange.
Snapping 3-day winning streak, Indian rupee ended weaker
against the American currency on Friday, as demand for the American unit from
importers and banks picked up. Traders remain concerned ahead of index of
industrial production (IIP) data for February and inflation numbers for March
to be released later in the day. Some pessimism also came in after 108
economists and former RBI Governor Raghuram Rajan, International Monetary
Fund's (IMF) Chief Economist Gita Gopinath expressed doubt over India's growth
rate, saying that there are still some issues with the way India calculates it.
However, last hour recovery in local equity markets coupled with dollar losing
sheen against some other currencies overseas restricted the local unit's
further down move. On the global front, euro rose sharply on Friday in a move
dealers said may have been driven by anticipated currency demand arising from a
Japanese bank's plans to purchase a German multi-billion dollar aviation
finance business. Finally, the rupee ended at 69.17, 25 paise weaker from its
previous close of 68.92 on Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 5258.31 crore against gross selling
of Rs 4241.89 crore while, in the debt segment, the gross purchase was of Rs
603.01 crore with gross sales of Rs 1426.25 crore. Besides, in the hybrid
segment, the gross buying was of Rs 7.42 crore against gross selling of Rs 2.02
crore.
The US markets ended higher on
Friday after a series of strong bank earnings, led by JPMorgan, boosted
confidence in the US economy. Asian markets are trading in green on Monday as
risk appetite was whetted by better-than-expected data from China that helped
boost confidence about the health of the world economy. Indian markets ended
choppy trading session in green territory on Friday mainly on the back of late
buying. Today, the start of a holiday-shortened week is likely to be cautious
amid weak macro-economic data. The Ministry of Statistics and Programme
Implementation data has showed that industrial growth fell to its lowest in 20
months in February, barely rising from a year ago as manufacturing contracted
following muted consumer demand, and public investment slowed toward the fiscal
year-end. The index of industrial production (IIP) rose 0.1%, the slowest since
a 0.3% contraction in July 2017. Besides, the Central Statistics Office (CSO)
data showed that India's retail inflation saw a marginal rise of 2.86% in March
on account of increase in prices of food articles and fuel. The inflation based
on Consumer Price Index (CPI) was 2.57% in February this year. On yearly basis,
it was 4.28% in March 2018. Also, there will be some cautiousness with Reserve
Bank of India (RBI) Governor Shaktikanta Das' statement that the biggest risk
facing emerging market economies is growing evidence that global growth and
trade is weakening. At the same time, emerging markets face a wave of global
spillover risks leading to capital outflows, currency and asset price
volatility besides tightened financial conditions, posing risks to growth and
inflation. However, some support may come in with firm global cues. Traders may
take note of better-than-expected earnings from Tata Consultancy Services (TCS)
and Infosys. TCS ended fiscal 2019 with double digit revenue growth as the
company reported a 11.4% growth in constant currency terms in the fiscal ending
March 31. This is TCS' fifth straight quarter of year-on-year double-digit
revenue growth in constant currency terms. Infosys reported a net profit of Rs
4,074 crore for the quarter ended March 31, 2019, a growth of 10% year-on-year,
helped by strong growth in its key financial services segment and large deal
wins during the period. There will be some buzz in the steel industry stocks
with report that India's finished steel exports fell more than a third in the
2018/19 fiscal year after the United States and Europe imposed safeguard duties
in the past one year. There will be some result reactions too, to keep the
markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,643.45
|
11,595.72
|
11,674.27
|
BSE Sensex
|
38,767.11
|
38,608.31
|
38,872.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
218.18
|
305.75
|
298.43
|
310.23
|
Tata Motors
|
217.89
|
215.95
|
214.30
|
218.30
|
Yes Bank
|
217.36
|
267.90
|
265.17
|
271.27
|
SBI
|
147.52
|
315.25
|
312.17
|
317.37
|
IOC
|
143.44
|
155.35
|
153.70
|
158.35
|
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