Indian stock markets ended the
range bound day of trade on a flat note as investors gauged the impact from
British Prime Minister Theresa May's surprise decision to hold early elections.
There was no major buying in any corner that could lift the markets and traders
remained on sidelines ahead of the first-round presidential polls in France
this weekend and amid brewing geopolitical tensions. Market participants also
remained cautious with the report that IMF trimmed India's annual growth
forecast by 0.4 percentage points to 7.2% for 2017, citing the temporary
negative consumption shock induced by cash shortages and payment disruptions
from the recent demonetization move. Adding the woes, India's largest software
services exporter, Tata Consultancy Services (TCS) missed estimates on both the
profit and revenue front with negative growth in the BFSI and retail segments.
The company's net profit for the Q4 fell 2.5% sequentially to Rs 6,608 crore,
while revenues declined 0.3% to Rs 29,642 crore. It's for the second
consecutive quarter that it has underperformed Infosys. Further, several
banking stocks came under pressure after IndusInd Bank missed estimates on
profit front and ahead of Yes Bank earnings later today. IndusInd Bank reported
a rise of 21.16% in its net profit at Rs 751.61 crore for the quarter ended
March 31, 2017 as compared to Rs 620.35 crore for the same quarter in the
previous year. Net Profit was adversely impacted by sharp jump in provisions
despite stable asset quality. Provisions and contingencies jumped 101.32% to Rs
430.13 crore in the quarter from Rs 213.66 crore in the same quarter last year.
However, sentiments got some support with the report that India jumped one spot
to 8th rank in the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence
Index. Finally, the BSE Sensex gained 17.47 points or 0.06% to 29336.57, while
the CNX Nifty was down by 1.65 points or 0.02% to 9,103.50.
The US markets closed mostly
lower on Wednesday, as a drop in oil prices fueled a selloff in energy shares,
while a drop in International Business Machines Corporation (IBM) was
responsible for half the session's losses in the blue-chip average. The Federal
Reserve's so-called Beige Book found a larger number of firms mentioned high
turnover rates and more difficulty retaining workers. Tight labor markets are broadening out wage
gains but price pressures remain modest. A couple of districts said that worker
shortages and increased labor costs were restraining growth in manufacturing,
transportation and construction. Despite these pressures, overall inflation was
modest. Selling prices rose only slightly. . Information from contacts
collected before April 10 suggested somewhat softer readings in non-auto
consumer spending and an expansion in the manufacturing sector. Home building
accelerated and energy-related businesses reported improved conditions. The Dow
Jones Industrial Average lost 118.79 points or 0.58 percent to 20,404.49,
S&P 500 ended lower by 4.02 points or 0.17 percent to 2,338.17, while the
Nasdaq added 13.56 points or 0.23 percent to 5,863.03.
Crude oil futures suffered sharp
sell-off in the last session and lost around 4 percent on Wednesday, as
concerns over rising levels of U.S. crude oil production returned, after the
Energy Information Administration (EIA) reported U.S. crude inventories fell
less than expected. The bearish inventory news overshadowed comments from OPEC
head Barkindo, who said the cartel was seeing compliance with its supply quota plan.
Meanwhile, the EIA said that crude oil inventories fell by 1.034 million
barrels compared to estimates of a draw of 1.470 million barrels. Gasoline
inventories grew by 1.542 million barrels, while distillate stockpiles fell by
1.955 million barrels. Benchmark crude oil futures for May delivery ended lower
by $1.97 or 3.8 percent to $50.44 on the New York Mercantile Exchange. In
London, Brent crude for May delivery ended down by $ 1.96 at $52.84 on the ICE.
Snapping
two days losing streak, Indian rupee appreciated against dollar on Wednesday
due to increased selling of American currency by exporters and banks. Investors
took encouragement with India Meteorological Department's (IMD's) statement
that India will get normal rainfall this monsoon season, somewhat allaying
fears that an El Nino phenomenon may disrupt the weather system that's the
lifeline for the country's rural economy. The June-September monsoon rainfall
this year is expected to be 96% of the long-term average with a 5% error margin
bringing relief to millions of farmers in the country. On the global front,
dollar pulled away from five-month lows versus yen on Tuesday, with comments
from U.S. Treasury Secretary Steven Mnuchin and higher debt yields giving the
bruised greenback some breathing space. Finally, the rupee ended at 64.57, 6
paise stronger from its previous close of 64.63 on Tuesday.
The
FIIs as per Wednesday's data were net sellers in equity segment, while they
were net buyers in debt segment. In equity segment, the gross buying was of Rs
3509.28 crore against gross selling of Rs 4321.43 crore, while in the debt
segment, the gross purchase was of Rs 833.72 crore with gross sales of Rs
580.48 crore.
The US markets made a mixed
closing in last session, as traders reacted to the latest earnings news as well
as a steep drop by the price of crude oil. The overall trading activity was
somewhat subdued with lingering geopolitical uncertainty keeping some traders
on the sidelines. The Asian markets have made mostly a positive start, the
Japanese market was up as the country's exports grew at the fastest rate in
more than two years in March, supporting a moderate economic recovery, on the
other hand the Chinese market was flat after four days of losses. The Indian
markets coming out of the choppiness managed a flat closing in the last session
with Sensex ending in green. Today, the start is likely to be mildly positive,
although the trade may remain range-bound lacking any major supportive cues.
There will be some cautiousness with Chief Economic Adviser Arvind
Subramanian's statement that India's high economic growth rate last fiscal may
not reflect the actual impact of demonetisation particularly on the informal
sector, and it may take a few months to assess its real fallout. The infra
stocks will keep buzzing, as the government has approved the policy guidelines
to allow financially sound state government entities to borrow directly from
bilateral ODA (Official development Assistance) partners for implementation of vital
infrastructure projects. There will be some reaction among the sugar stocks
too, with the government's decision to extend stock limits on sugar traders by
another six months till October 2017 to check sweetener prices that are ruling
at Rs 42-44 per kg. The move will enable state governments to impose stock
limits and licensing requirements in respect of sugar. There will be some
important result reactions too, to keep the markets in action.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9103.50
|
9078.93
|
9124.28
|
BSE Sensex
|
29336.57
|
29255.95
|
29402.72
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
181.50
|
284.05
|
280.72
|
289.57
|
Power Grid
|
163.68
|
211.20
|
204.27
|
215.82
|
ICICI Bank
|
138.09
|
280.55
|
277.93
|
284.08
|
Hindalco
|
100.62
|
186.00
|
182.97
|
188.12
|
Tata Steel
|
94.27
|
450.75
|
443.37
|
456.82
|
Bharti Airtel has entered into a partnership with Amazon for Amazon's Fire TV Stick with Voice Remote, which was launched in India on April 19, 2017.
Indian Oil Corporation has bought 3 million barrels of Russian Urals crude for June loading in a tender.
SBI's joint venture - SBI Card has started charging Rs 100 for payment through cheque if the amount is up to Rs 2,000.
TCS has reported a rise of 4.23% in its consolidated net profit at Rs 6,608 crore for the quarter ended March 31, 2017 as compared to Rs 6,340 crore for the corresponding quarter in the FY16.