Indian equity benchmarks bounced
back on Tuesday to settle trading session with strong gains of over a percent.
After slightly higher start, the markets traded lackluster with marginal gains
for the most part of the day, affected by a private report stating that food
inflation in the country is likely to go up to 2 percent in fiscal year 2019-20
from the 0.7 percent estimated for FY19. Adding some worries among the market
participants, the Employees State Insurance Corporation (ESIC) in its latest
‘payroll data' report said that job creation dropped by 6.91% in January 2019
to 11.23 lakh as compared to 12.06 lakh in the same month last year. Market
gains were also limited, with state-run India Meteorological Department's (IMD)
statement that its study of global models shows that there is little chance of
a strong El Nino in 2019. A strong El Nino could have an adverse impact on
India's southwest monsoon that starts from June as almost 80 per cent of El
Nino years have seen below normal rains. However, the key indices gained the
momentum in the last hours of the trade to settle near day's high points.
Domestic sentiments got boost with the finance ministry's statement that the
liquidity situation in the economy was comfortable, and it will improve further
with the central bank's move to infuse Rs 35,000 crore through the rupee-dollar
swap arrangement, announced last week. Investors took encouragement, after the
Vice President of India, M. Venkaiah Naidu called for a renewed focus on
agribusiness, value addition and diversification of agriculture to make farming
much more sustainable, profitable and rewarding. Some support also came with a
report stating that India's share in the final consumption of consumer goods is
expected to double by 2030 and the favourable demographics will soon take it
ahead of China in regional market dynamics. Some relief also came with reports
that the commerce ministry introduced an online system for exporters to obtain
export licence for restricted category goods, a move aimed at promoting
paperless work and ease of doing business. Finally, the BSE Sensex rose 424.50
points or 1.12% to 38,233.41, while the CNX Nifty was up by 129.00 points or
1.14% to 11,483.25.
The US markets ended higher with
gains of over half a percent on Tuesday on the back of rebound by bond yields,
with the yield on the benchmark ten-year note initially moving higher after
falling sharply over the past few sessions. A recent inversion of the yield
curve, with the yield on the ten-year note falling below the yield on
three-month bills, raised concerns about an impending recession. Meanwhile,
US-China trade negotiations resumed, reigniting some optimism that the high-stakes
dispute was coming to a close. Cabinet-level trade negotiations between Beijing
and Washington were scheduled to kick off, with US Trade Representative Robert
Lighthizer and Treasury Secretary Steven Mnuchin due in China later this week
to help conclude long-running discussions between the world's two largest
economies. On the economic front, reflecting a deterioration in consumers'
assessment of current conditions, the Conference Board released a report
showing an unexpected decrease in US consumer confidence in the month of March.
The Conference Board said its consumer confidence index dropped to 124.1 in
March after jumping to 131.4 in February. Street had expected the index to rise
to 133.0. Meanwhile, new residential construction in the US pulled back sharply
in February after jumping in the previous month, according to a report released
by the Commerce Department. The report said housing starts plunged by 8.7
percent to an annual rate of 1.162 million in February after surging up by 11.7
percent to a revised rate of 1.273 million in January. The Commerce Department
said building permits also fell by 1.6 percent to an annual rate of 1.296
million in February after dipping by 0.7 percent to a revised rate of 1.1317
million in January. Dow Jones Industrial Average surged 140.90 points or 0.55
percent to 25657.73, Nasdaq gained 53.98 points or 0.71 percent to 7691.52 and
S&P 500 was up by 20.10 points or 0.72 percent to 2818.46.
Crude oil futures settled higher
on Tuesday as reductions in global production led by Organization of the
Petroleum Exporting Countries (OPEC), as well as supply declines brought on by
US sanctions on Iran and Venezuela. Members of OPEC and other major oil
producers, including Russia, have pledged to curb crude production by around
1.2 million barrels a day from October levels for the first half of this year
to prop up markets. Meanwhile, market participants will keep an eye on Middle
East developments around Gaza, should tensions expand, although reports had yet
to factor significantly in the futures market. Benchmark crude oil futures for
May rose $1.12 or 1.9 percent to settle at $59.94 a barrel on the New York
Mercantile Exchange. May Brent crude gained 76 cents or 1.1 percent to settle
at $67.97 a barrel on London's Intercontinental Exchange.
Indian
rupee erased most of its intraday gain and ended marginally higher on Tuesday
on selling of dollars by banks and exporters. Sentiments remained positive with
the finance ministry's statement that the liquidity situation in the economy
was comfortable, and it will improve further with the central bank's move to
infuse Rs 35,000 crore through the rupee-dollar swap arrangement, announced
last week. A spectacular relief rally in local equities also supported the
forex sentiment. But most of the gains were trimmed as anxiety remained among
the traders with a report that Food inflation in the country is likely to go up
to 2% in fiscal year 2019-20 from the 0.7% estimated for FY19. On the global
front, euro steadied on Tuesday after economic surveys showed tentative signs
of a recovery in the euro zone economy but warning signs from bond markets
continued to unnerve investors. Finally, the rupee ended at 68.86, 10 paise
stronger from its previous close of 68.96 on Monday.
The FIIs as per Tuesday'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 5932.28 crore against gross
selling of Rs 6592.80 crore, while in the debt segment, the gross purchase was
of Rs 5940.13 crore with gross sales of Rs 2412.96 crore. Besides, in the
hybrid segment, the gross selling was of Rs 1.43 crore against no buying.
The US markets rose on Tuesday as
investors overlooked lackluster housing and consumer data, with energy and
pharmaceutical stocks among the leaders. Asian markets are trading mixed on
Wednesday amid lingering fears that the global economy is slowing down. Indian
markets snapped tow-day losing streak and ended higher on Tuesday mainly on the
back of late hour buying amid positive leads from Asian markets coupled with
persistent foreign fund inflows. Today, the start is likely to be in red
tracking mixed cues from Asian peers amid global growth concerns. On the
domestic front, there will be some cautiousness as former Reserve Bank of India
(RBI) Governor Raghuram Rajan expressed doubts over Indian economy growing at 7
per cent when not enough jobs were being created and said the current cloud
over the Gross Domestic Product (GDP) numbers must be cleared by appointing an
impartial body to look at the data. Meanwhile, he said that India needs to
focus on the resolution of farm distress rather than loan waivers which kill
the credit culture. He added that the other focus area should be creation of
jobs which the people want. However, some support may come with report that the
RBI has received a good response to its dollar swap window on March 26,
establishing the instrument as a credible liquidity tool and paving the way for
more such auctions in the coming months. Banks offered $16.31 billion for the
proposed swaps of up to $5 billion. The RBI accepted $5.02 billion at a cut-off
premium of Rs 7.76 for three-year dollars - close to the rate at which the
market was trading at. Besides, a private report indicated that although 2018
brought some cyclical challenges, India maintains top ranking in overall
consumer sentiment, while Brazil has overtaken China to come second. There will
be some reaction in power sector stocks with the secretary of ministry of
renewable energy's statement that India will launch $5 billion of
transmission-line tenders in phases, beginning in June, to route a targeted 175
gigawatts (GW) of power from renewable sources into the country's grid by 2022.
Meanwhile, state-owned Rail Vikas Nigam (RVNL) has fixed a price band of Rs
17-19 per equity share for its upcoming initial public offering (IPO), which
would run from March 29-April 3, to raise about Rs 481 crore.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,483.25
|
11,391.55
|
11,535.85
|
BSE Sensex
|
38,233.41
|
37,923.09
|
38,420.71
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
IOC
|
263.97
|
161.80
|
158.28
|
167.53
|
NTPC
|
235.11
|
140.80
|
137.20
|
143.20
|
Yes Bank
|
205.72
|
253.70
|
249.17
|
256.52
|
SBI
|
183.04
|
303.50
|
297.17
|
307.42
|
ONGC
|
166.95
|
160.05
|
158.15
|
162.50
|
L&T's wholly owned subsidiary -- LTHE has won a large order from Tawfiq Coke Products-Oman.
HDFC will raise up to Rs 3,000 crore by issuing bonds on a private placement basis to augment its long term capital resources.
HCL Technologies has launched the HCL ADvantage Experience.
ITC has sold its menswear brand John Players to Reliance Retail for an undisclosed amount.