Indian equity indices sustained
their gaining rally for the second straight session on Wednesday, with Sensex
and Nifty closing higher by around 0.40% each. The markets made a negative
start of the day, amid Former RBI deputy governor Rakesh Mohan's statement that
manufacturing growth is not consistent with India's overall Gross Domestic
Product (GDP) growth figures. He noted that the country cannot grow at 8
percent without manufacturing sector posting 10 percent growth. But soon,
markets staged recovery, taking support with exporters body Federation of
Indian Export Organisations' (FIEO) statement that exports are likely to touch
$1 trillion in the next 3 years with the help of the government's focus to
improve logistics, ease of doing business and modern trade infrastructure. Key
indices remained positive for the most part of the session to end in green
terrain, as the Employees' State Insurance Corporation's (ESIC) gross payroll
data showed that Job creation was slightly up at 10.88 lakh in April as
compared with 10.77 lakh in the year-ago month. Gross new enrolments in 2018-19
stood at 1.49 crore, indicating that these many jobs were created in the
financial year. Traders were also positive, as the Vice President Venkaiah
Naidu made some suggestions to the Finance Minister with regard to the upcoming
Budget. Among others, he stressed the need to take steps to protect agriculture
and introduce structural changes. Naidu also suggested to the minister to
undertake a review of the Import-Export Policy and protect the interests of the
farming community. Finally, the BSE Sensex gained 157.14 points or 0.40% to
39,592.08, while the CNX Nifty was up by 51.10 points or 0.43% to 11,847.55.
The US markets ended mostly lower
on Wednesday after an early rally - fueled by optimism over the next round of
US-China trade talks - lost momentum toward the end of the day. Treasury
Secretary Steven Mnuchin said ahead of the highly anticipated G20 meeting
between President Donald Trump and Chinese President Xi Jinping. The US and
China had nearly completed a deal before talks broke down last month. He added
we were about 90 percent of the way there and I think there's a path to
complete this. However, Mnuchin refused to speculate on whether a deal would be
completed but he was hopeful, noting President Trump and President Xi have a
very close working relationship. On the economic front, new orders for US
manufactured durable goods unexpectedly showed another steep drop in the month
of May, according to a report released by the Commerce Department. The Commerce
Department said durable goods orders slumped by 1.3% in May after tumbling by a
revised 2.8% in April. The continued decrease surprised participants, who had
expected durable goods orders to rise by 0.2% compared to the 2.1% drop
originally reported for the previous month. Transportation equipment led the
way lower once again, with orders in the volatile category plummeting by 4.6%
in May after plunging by 7.6% in April. Orders for non-defense aircraft and
parts showed a continued nosedive. Excluding the continued collapse in orders
for transportation equipment, durable goods orders rose by 0.3% in May after
edging down by 0.1% in April. Street had expected a 0.1% uptick. Dow Jones
Industrial Average declined 11.40 points or 0.04 percent to 26536.82 and
S&P 500 was down by 3.60 points or 0.12 percent to 2913.78, while Nasdaq gained
25.25 points or 0.32 percent to 7909.97.
Crude oil futures ended higher on
Wednesday after the Energy Information Administration (EIA) reported that US
crude supplies dropped by 12.8 million barrels for the week ended June 21.
S&P Global Platts expected a decline of 2.8 million barrels in crude stocks,
on average. The American Petroleum Institute on Tuesday reported a 7.5
million-barrel fall. The EIA data also showed that gasoline inventories were
down by 1 million barrels, while distillate stockpiles fell 2.4 million barrels
last week. The S&P Global Platts survey had shown expectations for supply
declines of 1.1 million barrels each for gasoline and distillates. Benchmark
crude oil futures for August surged $1.55 or 2.7 percent to settle at $59.38 a
barrel on the New York Mercantile Exchange. August Brent rose $1.44 or 2.2
percent to settle at $66.49 a barrel on London's Intercontinental Exchange.
Indian rupee gained ground against dollar and ended higher
on Wednesday, on persistent selling of the American currency by exporters. Sentiments remained up-beat with Federation
of Indian Export Organisations' (FIEO) statement that the government's focus to
improve logistics, ease of doing business and modern trade infrastructure will
help exports to touch $1 trillion in the next three years. Moreover, positive
gains in the domestic equities too supported the domestic unit. However,
dollar's strength against major global currencies overseas restricted the local
unit's further up move. On the global front, dollar edged up from a three-month
low on Wednesday, as investors dialed back expectations for aggressive US rate
cuts next month but broader conviction the Federal Reserve will need to ease
policy soon capped greenback gains. Finally, the rupee ended at 69.15, 21 paise
stronger from its previous close of 69.36 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 6056.58 crore against gross
selling of Rs 3636.67 crore, while in the debt segment, the gross purchase was
of Rs 924.37 crore with gross sales of Rs 2136.84 crore. Besides, in the hybrid
segment, the gross buying was of Rs 347.20 crore against gross selling of Rs
12.05 crore.
The US markets ended mostly lower
on Wednesday as investors waited for developments on a trade deal with China.
Asian markets are trading in green on Thursday despite US President Donald
Trump gave mixed signals on US-China trade negotiations. Indian markets ended
higher with modest gains for second straight session on Wednesday, backed by
firmness in banks and metal stocks. Today, the start of the F&O series
expiry session is likely to be cautious amid mixed cues from global markets.
There will be some cautiousness with Telecom Minister Ravi Shankar Prasad's
statement that foreign direct investment (FDI) in the Indian telecom sector
dropped by around 43 per cent to $2.6 billion in fiscal year 2018-19. However,
traders may take some support later in the day with a private report that as it
looks for means to push growth, the government can look at issuing
infrastructure bonds via a special purpose vehicle (SPV), which could mop up
over Rs 95,000 crore or 0.5 percent of GDP. Some support may also come with
Arvind Panagariya's statement that the escalating trade war between the US and
China is an opportune time for India to attract the large multinationals
looking for alternative locations outside the Communist country. Meanwhile, the
Reserve Bank of India (RBI) has issued guidelines for setting up of financial
benchmark administrator (FBA) for administering significant benchmarks in the
markets for financial instruments. Benchmarks administered outside India do not
fall under the scope of the guidelines. There will be some reaction in Micro Small
and Medium Enterprises (MSME) sector stocks with report that the U K Sinha
Committee, set up by the RBI on MSME, has recommended financial support of Rs
15,000 crore to the MSME sector, which contributes significantly to employment
generation and has as a hefty share of over 40 percent in exports. It added
that the contribution of the sector in the economy is currently constrained due
to several challenges affecting growth in the sector. There will be some buzz
in the metal stocks with report that India's finished steel exports in May fell
to their lowest in three years as shipments to traditional markets in the
European Union (EU) and Nepal shrank.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,847.55
|
11,779.45
|
11,893.75
|
BSE Sensex
|
39,592.08
|
39,383.07
|
39,737.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
728.80
|
113.05
|
109.42
|
115.67
|
NTPC
|
246.44
|
140.05
|
138.93
|
141.53
|
Tata Motors
|
184.81
|
161.10
|
159.17
|
162.62
|
Power Grid
|
175.40
|
209.65
|
203.48
|
213.38
|
SBIN
|
158.36
|
358.15
|
355.30
|
360.00
|
NTPC has won entire 40 MW of Solar capacity bid by it at a levelised tariff of Rs 3.02/kWh applicable for 25 years.
ICICI Bank is eyeing to grow its retail loan disbursement in Kerala by over 20 percent to Rs 3,100 crore in FY20.
Tech Mahindra has entered into strategic global alliance with K2View to help organizations accelerate and bridge digital transformation.
LIC has sold over 1.92 crore shares, repressenting about 2 per cent stake of Asian Paints, through the open market transaction.