The penultimate day of April
series futures and options contract expiry turned out to be a good session for
the Indian frontline equity indices as they managed to settle higher for a third
straight session, with both Sensex and Nifty closing at fresh record highs,
buoyed by better-than-expected quarterly results and positive global cues.
Investor sentiments around the globe turned optimistic on possible tax cuts,
likely to be announced on Wednesday by President Donald Trump to stimulate the
US economy and the outcome of the French election allaying immediate concerns
of political uncertainty in the euro zone. On the domestic front, sentiments
got a boost after Finance Minister Arun Jaitley asserted that the government
was giving top priority to addressing the issue of bad loans, while
acknowledging that the problem of non-performing assets was ‘adversely
impacting' the Indian banking system. Besides, Indian rupee appreciating
against the dollar to trade at a near 21-month high of 64.07 fuelled the bull
run of the bourses. Investors got some confidence from the survey indicating
that India continues to remain an economic bright spot despite some bold but
disruptive reforms. The FICCI-PwC India Manufacturing Barometer (IMB) survey
stated that about 63% of respondents were 'somewhat optimistic' about the
prospects of the Indian economy for the coming year, representing a significant
jump over last year's 58%.Some support also came with Revenue Secretary Hasmukh
Adhia assuring that prices will not increase due to higher incidence of tax and
instead, are likely to come down under the Goods and Services Tax (GST) regime.
He said that though most services will be taxed at 18% under the GST regime, as
against the current 15% service tax, a majority of these will get input tax
credit on purchases and the overall tax incidence will remain the same.
Finally, the BSE Sensex gained 190.11 points or 0.63% to 30133.35, while the
CNX Nifty was up by 45.25 points or 0.49% to 9,351.85.
The US markets closed lower on
Wednesday, retreating from intraday highs after an outline of President Donald
Trump's tax plan was seen as light on detail. The expectation of a corporate
tax cut was partly behind the rally in US stocks since the November election of
Donald Trump. The market stalled over the last several weeks as the
administration has failed to score a major legislative victory, Republican
majorities in the House and Senate notwithstanding. Treasury Secretary Steven
Mnuchin and National Economic Council Director Gary Cohn rolled out a one-page
outline of Trump's tax-reform plan in a news conference, promising more details
later. He said there was fundamental agreement between President Donald Trump's
administration and the Congress on the goals of the tax reform, and the details
would be worked out. The market was looking for more specific color on rates
and the reduction of exemptions, but color on the repatriation tax, which is
the single most important issue, was left unaddressed at that press conference.
The Dow Jones Industrial Average lost 21.03 points or 0.10 percent to
20,975.09, Nasdaq dropped 0.26 points to 6,025.23, while S&P 500 ended
lower by 1.16 points or 0.05 percent to 2,387.45.
Crude oil futures extended their
gains on Tuesday, crude prices soared above $50 a barrel, but pared gains later
during the session, as investors weighed the rise in production against the larger
than expected drawdown in US crude inventories. A day after industry group the American
Petroleum Institute reported an estimated increase of 897,000 barrels in US
inventories, the EIA said there was actually a draw of 3.6 million barrels for
the week to April 21. Meanwhile, gasoline inventories grew by 3.369 million, while
distillate stockpiles rose by 2.651 million barrels. Benchmark crude oil
futures for June delivery ended higher by $0.06 or 0.11 percent to $49.62 on
the New York Mercantile Exchange. In London, Brent crude for June delivery
ended down by $ 0.13 at $51.97 on the ICE.
Maintaining
the good form for the third day, Indian rupee ended at nearly 20-month high
against dollar on Wednesday due to sustained selling of the US currency by
exporters and banks. Sentiments remained positive with a survey indicating that
India will continue to remain an economic bright spot despite some bold but
disruptive reforms. Moreover, dollar's weakness against other currencies
overseas, foreign fund inflows and a strong domestic equity market too kept the
domestic unit in good spirit. On the global front, dollar edged higher against
yen on Wednesday, while the euro held firm near a 5-1/2 month high due to
receding concerns about the risks posed by the French presidential election.
Finally, the rupee ended at 64.11, 16 paise stronger from its previous close of
64.27 on Tuesday.
The
FIIs as per Wednesday'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
5660.25 crore against gross selling of Rs 5334.27 crore, while in the debt
segment, the gross purchase was of Rs 790.89 crore with gross sales of Rs
882.07 crore.
The US markets made a marginally
lower closing in the last session, the major averages pulled back going into
the close, ending the session just below the unchanged line. The decline came
after officials from President Donald Trump's administration unveiled the
president's highly anticipated tax reform plan. The Asian markets have made
mostly a lower start, coming off their five days rally as investors assessed a
plan to overhaul U.S. taxes, while awaiting policy decisions from the Bank of
Japan and the European Central Bank. The Indian markets extending their
jubilation mood surged to record highs in the last session, with Sensex surging
to a fresh life time closing high of over 30000. There was some support with
both Finance Minister Arun Jaitley and the NITI Aayog clarifying that the Modi
government has no plans to impose any tax on agriculture income, as proposed by
the government's think tank in its long term vision document. Today, the start
of the F&O series expiry session is likely to be mildly soft tailing the
weakness in other global markets. Also, Finance Minister Arun Jaitley has
expressed concern over the worrying signs of economic protectionism and has
said the continued unpredictability in ties between major powers has brought
new uncertainties to the fore. There will be some cautiousness in the banking
sector, with Axis Bank's numbers, the third-largest private sector lender, on
Wednesday after the market hours reported a 43% year-on-year (y-o-y) decline in
its net profit for the quarter ended March to Rs 1,225.1 crore, as provisions
jumped 121% over the previous year to Rs 2,581.25 crore. However, some respite
can come with Finance Minister Arun Jaitley's assertion that the government was
giving top priority to addressing the issue of bad loans while acknowledging
that the problem of non-performing assets was "adversely impacting"
the Indian banking system. There will be some important earnings announcements
too to keep the markets buzzing.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9351.85
|
9313.13
|
9378.78
|
BSE Sensex
|
30133.35
|
30012.25
|
30210.77
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ITC
|
189.42
|
290.90
|
284.30
|
295.20
|
SBI
|
138.37
|
286.45
|
283.37
|
289.52
|
ICICI Bank
|
138.23
|
276.90
|
273.95
|
278.90
|
Hindalco
|
134.69
|
197.00
|
193.58
|
199.43
|
Axis Bank
|
115.17
|
517.15
|
508.47
|
525.42
|
Yes Bank has entered into partnership with Paisabazaar.com under which the Bank will offer conditionally approved loans to the latter's existing customers.
NTPC has launched an issue of Rs 2000 crore notes due 2022 priced on April 25, 2017.
Bharti Airtel has added 29.99 lakh users in March 2017.
Mahindra & Mahindra's - wholly owned subsidiary - Mahindra Overseas Investment Company, has acquired 100% of the equity share capital of Mahindra Automotive North America Inc. in USA.