Indian benchmark indices
continued their record-setting spree, closing at all-time highs for the fourth
time in last five sessions with the Nifty closing above 9,500 level for the
first time and the Sensex ending firmly above 30,500 mark. Bullishness seemed
to be returning to the markets as investors aggressively piled up positions in
key heavyweight stocks on account of robust foreign fund inflows,
better-than-expected earnings by some blue-chip companies so far, and overnight
gains in the US markets. Some support also came with the report that India's
monsoon rains are expected to arrive on the southern Kerala coast on May 30,
two days ahead of schedule. India looks likely to receive higher monsoon
rainfall than previously forecast as concern over the El Nino weather condition
has eased. Further, investors' morale got a boost with Industry body FICCI's
latest Economic Outlook Survey pegging India's gross domestic product (GDP)
growth at around 7.4% for the fiscal year 2017-18. The survey was conducted
during March and April 2017 and recorded a median GDP group forecast of 7.4%
for the current fiscal year, with a minimum and maximum level of 7% and 7.6%
respectively. The pick-up in overall GDP growth will also be supported by an
improvement in industry and services sector growth. The markets paid no heed to the report that
India's trade deficit swelled to a 29-month high in April as imports led by
gold grew sharper than exports. While Imports grew 49% from a year ago to $37.8
billion, buoyed by a 211% rise in gold imports, exports increased 19.7% to
$24.6 billion, widening trade deficit to $13.2 billion from $4.8 billion in the
year ago period. Meanwhile, India and Japan are together embarking upon
multiple infrastructure projects across Africa, Iran, Sri Lanka and Southeast
Asia in what could be viewed as pushback against China's massive, unilateral
infrastructure initiatives under the One Belt One Road (OBOR) project
connecting it with Europe and Africa. Finally, the BSE Sensex gained 260.48
points or 0.86% to 30582.60, while the CNX Nifty was up by 66.85 points or
0.71% to 9,512.25.
The US markets closed mostly
lower on Tuesday, while Nasdaq closed at a record for a second session in a
row, and the Dow industrials and S&P 500 finished fractionally lower amid
political uncertainty in the US. Investors were also assessing reports that
Trump had shared sensitive intelligence obtained from a close US ally with
Russia's foreign minister and ambassador. The Atlanta Federal Reserve's GDP Now
forecast model showed that the US economy is forecast to expand at a 4.1
percent annualized pace in the second quarter following the release of April
figures on housing starts and industrial output. The latest second-quarter
gross domestic product estimate was faster than the 3.6 percent reading
calculated on May 12. On the economy front, the pace of home construction eased
in April as builders took a breather after a strong start to the year. Housing
starts ticked down 2.6% to a 1.17 million annual pace, and stood just 0.7%
higher than in the same month last year. Permits fell 2.5% to a 1.23 million
pace in April. That was 5.7% higher than a year ago. Separately, industrial
production in April grew at the fastest monthly rate in more than three years,
on the back of broad-based gains in the manufacturing sector. The Federal
Reserve said that industrial production grew 1% in April. The Dow Jones
Industrial Average lost 2.19 points or 0.01 percent to 20,979.75, S&P 500
edged lower by 1.65 points or 0.07 percent to 2,400.67, while Nasdaq gained
20.2 points or 0.33 percent to 6,169.87.
Crude oil futures unable to
extend their gains, ended lower once again on Tuesday after a warning on the
global supply glut. The IEA forecast global demand growth of 1.3 million b/d in
2017, unchanged from its previous assessment. Investors awaited a fresh weekly
batch of U.S inventory data amid growing support from energy ministers for
prolonged supply cuts to March 2018. Though, investors' optimism grew that the
OPEC-led supply-cut agreement would be extended for a period of nine months,
until March 2018, after Kuwait became the latest oil producing nation to
support the idea of prolonged supply cuts. Benchmark crude oil futures for June
delivery ended lower by $0.19 or 0.4 percent to $48.66 on the New York
Mercantile Exchange. In London, Brent crude for July delivery ended down by $ 0.19 to
end at $51.63 on the ICE.
Indian rupee ended marginally
weaker against the US dollar on Tuesday, on account of buying of American
currency by banks and importers. Investors turned cautious with report that
India's trade deficit swelled to a 29-month high in April as imports led by
gold grew sharper than exports. While imports grew 49% from a year ago to $37.8
billion, buoyed by a 211% rise in gold imports, exports increased 19.7% to
$24.6 billion, widening trade deficit to $13.2 billion from $4.8 billion in the
year ago period. However, dollar's weakness against other currencies overseas
and a robust domestic equity market restricted the rupee's losses. On the
global front, dollar slumped against all other major currencies on Tuesday,
after reports President Donald Trump shared classified information with top
Russian officials at a meeting last week. Finally, the rupee ended at 64.08, 2
paise weaker from its previous close of 64.06 on Monday.
The FIIs as per Tuesday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4730.79 crore against gross selling of Rs 4346.06 crore, while
in the debt segment, the gross purchase was of Rs 3544.02 crore with gross
sales of Rs 1080.40 crore.
The US markets made a mixed
closing in last session after a choppy session of trade, but despite the choppy
trading on the day, the tech-heavy Nasdaq reached another new record closing
high. Though, mixed batch of US economic data along with continued turmoil in
Washington kept weighing down the sentiments. The Asian markets have once again
made a mixed start with many of the indices in the region turning cautious over
the turmoil engulfing President Donald Trump's administration. The Japanese
market turned lower as the yen strengthened against the dollar. The Indian
markets rallied in the last session to a fresh record high on some good
earnings as well as macro indicator. Today, the start of the day is likely to
be in green but the mood may turn cautious, as the United Nations has revised
downward India's economic growth forecast for 2017 but predicted an increased
7.9 percent GDP growth next year as it cautioned that stressed balance sheets
in the banking sectors will prevent strong investment rebound in the near term.
Also, a private report has said that after a six-year wait, private investment
growth rates seems to have bottomed out in 2016 but the pace of its revival is
expected to be gradual over the next few years. Meanwhile, ahead of the planned
GST rollout from July 1, the government is strengthening the body responsible
for detecting tax evasion and will set up two new agencies, including one for
business intelligence and analytics. The IT sector will keep buzzing, as the
government has downplayed job losses in the IT sector, citing retrenchment and
automation. There will be lots of important earnings announcements to keep the
markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9512.25
|
9473.33
|
9534.18
|
BSE Sensex
|
30582.60
|
30433.46
|
30661.64
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
177.90
|
302.65
|
300.50
|
305.35
|
SBI
|
175.33
|
307.50
|
301.77
|
310.82
|
ITC
|
112.04
|
283.45
|
279.53
|
285.83
|
Bank of Baroda
|
106.32
|
193.55
|
188.30
|
196.90
|
Tata Steel
|
102.99
|
456.55
|
453.27
|
461.92
|
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Maruti Suzuki India has earmarked a budget of Rs 140 crore for Corporate Social Responsibility activities for FY18.
Tata Power Solar Systems, 100% subsidiary of Tata Power, and Dell International Services India have jointly build India's largest vertical solar farm of 120 kw.