Thursday turned out to be a
fabulous day of trade for Indian equity benchmarks with frontline gauges
recapturing their crucial 34,700 (Sensex) and 10,600 (Nifty) levels. Markets
started the session on positive note as sentiments remained upbeat on report
that India's global trade increased by 16.32% to $767.9 billion in 2017-18.
According to the Commerce Department data, in 2016-17, the trade stood at
$660.2 billion. The data further highlighted that while India's global trade
grew by 16.32% between FY17 and FY18, India's total trade with LAC (Latin
American countries) grew by 19.63%. It said that bilateral trade with LAC
including Bolivia, Peru, Chile and Brazil has recorded healthy growth in
2017-18 as per the provisional numbers. Traders also got some support with
report that Indian economy is expected to witness a cyclical recovery driven by
investments as well as consumption, and the average GDP growth is expected to
rise to 7.8% in the first half of this year. Meanwhile, India has inked a loan
agreement of $125 million with World Bank's investment arm to fund Innovate in
India for Inclusiveness project. Buying which took place in final hour of
trade helped markets to end near intraday high levels on account of roll-over
of long position in Futures & Options (F&O) segment. Some support also
came with report that the agriculture ministry has targeted a record 283.7
million tonnes of foodgrain production in 2018-19, about 6 million tonnes or 2%
higher than the estimated 277.5 million tonnes produced the year before. If
these targets are met, it would mean the third straight year of food production
surpassing the previous year's record. Meanwhile, bolstering the government's
credentials on job creation, for the first time, payroll data released by the
Employees' Provident Fund Organisation (EPFO) and the National Pension System
(NPS) showed at least 2.2 million formal jobs were added over the six months to
February. The EPFO data shows 3.1 million new additions across age groups over
this period. Finally, the BSE Sensex surged 212.33 points or 0.62% to
34,713.60, while the CNX Nifty was up by 47.25 points or 0.45% to 10,617.80.
The US markets closed higher on
Thursday, with the Dow Jones Industrial Average booked its best one-day gain in
about two weeks and the broader market all saw gains of at least 1% on the back
of better-than-expected quarterly results and a retreat of government bond
yields. Traders focused on the latest run of earnings from major tech
companies, which managed to instill some confidence in the earnings season. So
far this season, more than 80% S&P 500 companies have beaten forecasts, but
the better-than-expected results have often failed to lift the companies' share
prices. The Atlanta Federal Reserve's GDPNow forecast model showed that the US
economy likely grew at a 2.0 percent annualized rate in the first quarter as a
drop in advanced trade goods in March offset a decline in core capital goods
orders last month. The latest estimate on gross domestic product was unchanged
from the growth rate estimated on April 17. On the economy front, the trade
deficit in goods narrowed 10.3% to $68 billion, according to the government's
advanced report released. This was the first narrowing of the deficit in seven
months and came in well below the $73.4 billion estimate. The Dow Jones
Industrial Average added 238.51 points or 0.99 percent to 24,322.34, the Nasdaq
gained 114.94 points or 1.64 percent to 7,118.68, and the S&P 500 was up by
27.54 points or 1.04 percent to 2,666.94.d
Crude oil
futures edged higher on Thursday as traders looked beyond a surprise increase
in U.S. supplies, and instead focused on the possibility that the U.S. will
re-impose sanctions on Iran. Recent comments from French President Emmanuel
Macron indicate his belief that President Donald Trump will move to pull the
U.S. out of the Iranian nuclear deal, despite Macron's efforts to secure
continued partnership from the U.S. That move would risk some of the oil supply
gains that Iran has seen following the removal of sanctions more than two years
ago, and is a fundamentally bullish factor for oil futures. Benchmark crude oil
futures for June delivery rose 14 cents or 0.2 percent to settle at $68.19 a
barrel on the New York Mercantile Exchange. June Brent crude gained 74 cents or
1 percent to settle at $74.74 a barrel on London's Intercontinental Exchange.
After
yesterday's steep losses, Indian rupee gained ground against dollar and ended
higher on Thursday, due to selling of the US currency by exporters and banks.
Sentiments turned optimistic with report that India's global trade increased by
16.32% to $767.9 billion in 2017-18. According to the Commerce Department data,
in 2016-17, the trade stood at $660.2 billion. The data further highlighted that
India's total trade with LAC (Latin American countries) grew by 19.63%.
Besides, dollar's weakness against other currencies in the global market
largely helped the rupee to rebound from early plunge. On the global front,
euro edged off eight-week lows on Thursday as traders prepared for a European
Central Bank meeting from which investors will be searching for any signals
about when the bank will begin unwinding its stimulus. Finally, the rupee ended
at 66.75, 15 paise stronger from its previous close of 66.90 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4708.95 crore against gross selling of Rs 4808.75 crore, while
in the debt segment, the gross purchase was of Rs 844.69 crore with gross sales
of Rs 1450.02 crore. Besides, in the hybrid segment, the gross buying was of Rs
0.15 crore against gross selling of Rs 5.85 crore.
The US markets ended higher on
Thursday, following release of upbeat earnings news from several big-name
companies, with shares of Facebook (FB) surging up by 9.1 percent. Asian
markets rallying in early deals as investor concerns over geopolitical risks
eased on looming trade talks between the U.S. and China and the leaders of
North and South Korea meeting Friday. Indian stock markets closed higher on
Thursday as Yes Bank delivered good quarterly numbers and traders covered their
short positions on eve of derivative expiry. Today, the markets are likely to
make an optimistic start, mirroring firm global markets after some of the
biggest U.S. companies reported strong quarterly results. Traders will also get
some support with private report that India's economic growth will accelerate
to 7.2 per cent in the current fiscal buoyed by manufacturing activity even as
rising oil prices and high government debt remain a challenge. The agriculture
sector is expected to grow higher than the estimated 2.1 per cent in the
current fiscal year on account of positive prospects on Rabi harvest and a
normal monsoon. Traders will also took some strength with NITI Aayog's
statement that 3.53 million (35.3 lakh) new jobs were generated between
September 2017 and February this year. The EPFO data shows that from September
2017 to February 2018, 3.1 million (31.10 lakh) new payroll additions were made
across all age groups. Stocks related to gems and jewellery sector will be in
focus on report that the gems and jewellery exports have declined by 8.67
percent to Rs 2,64,130.64 crore in financial year 2017-18, mainly due to drop
in demand from the UAE. 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
|
10,617.80
|
10,575.50
|
10,644.25
|
BSE Sensex
|
34,713.60
|
34,563.49
|
34,805.84
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
623.65
|
352.40
|
330.58
|
367.23
|
SBI
|
244.95
|
233.20
|
230.87
|
237.17
|
ITC
|
202.83
|
278.25
|
274.47
|
280.57
|
Tata Motors
|
166.48
|
330.25
|
325.52
|
335.47
|
Hindalco
|
164.01
|
234.00
|
230.73
|
237.98
|
Bharti Airtel has received an approval for transfer / sale of submarine cables to Network i2i, a wholly owned subsidiary of the company.
Yes Bank has partnered with FICCI for The Great Indian Travel Bazaarཎ held in Jaipur on April 22-24, 2018.
Vedanta has incorporated a wholly owned subsidiary Vedanta Star with effect from April 23, 2018.
Wipro has received an approval for the merger of its wholly owned subsidiaries with itself.