Last hour volatility pushed the
Indian equity markets lower on Thursday, with Sensex and Nifty closing flat
with a negative bias. After a positive start, key indices traded higher for the
most part of session, aided by 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. Traders remained optimistic with the department for
promotion of industry and internal trade's (DPIIT) Secretary Ramesh Abhishek's
statement that National Retail Policy will streamline the retail trade in India
and is poised to provide the ease of doing business, which may be to the
advantage of both traders and Indian economy. However, markets failed to hold
gains in the last leg of trade and ended in red terrain, amid a report stating
that the cumulative debt of the National Highway Authority of India (NHAI) has
mounted to Rs 1.78 lakh crore in FY19 from around Rs 40,000 crore in FY14. The
borrowing is expected to go up to Rs 3.31 lakh crore by FY23. Adding some more
worries among market participants, Telecom Minister Ravi Shankar Prasad said
that foreign direct investment (FDI) in the Indian telecom sector declined by
around 43 percent to $2.6 billion in last financial year (FY19). The FDI equity
inflow in the FY18 was $6,211.84 million whereas the FDI equity inflow in the
FY19 was $2,667.91 million. Finally, the BSE Sensex fell 5.67 points or 0.01%
to 39,586.41, while the CNX Nifty was down by 6.00 points or 0.05% to
11,841.55.
The US markets ended mostly
higher on Thursday as traders looked ahead to the highly anticipated G20
meeting between President Donald Trump and Chinese President Xi Jinping. Trump
and Xi are not expected to come out of the meeting with a finalized trade deal,
but traders will be looking for signs of progress toward kick-starting the
stalled negotiations between the two economic superpowers. A private report
said Xi plans to present Trump with a set of terms the US should meet before
Beijing is ready to settle the trade dispute. Lifting the ban on the sale of US
technology to Chinese telecom giant Huawei, removing all tariffs and dropping
efforts to get China to buy more US exports are reportedly among the
preconditions. However, Trump is not likely to appreciate Xi dictating terms
and has repeatedly threatened to escalate the trade war with new tariffs on all
remaining Chinese imports. On the economic front, pending home sales in the US
jumped by slightly more than anticipated in the month of May, according to a
report released by the National Association of Realtors (NAR), with pending
sales rebounding after showing a steep drop in the previous month. NAR said its
pending home sales index surged up by 1.1 percent to 105.4 in May after
tumbling by 1.5 percent to 104.3 in April. Despite the monthly increase,
pending home sales in May were down by 0.7 percent compared to the same month a
year ago, reflecting the 17th straight month of annual decreases. Besides, the
Labor Department released a report showing first-time claims for US
unemployment benefits increased by more than expected in the week ended June
22. The report said initial jobless claims rose to 227,000, an increase of
10,000 from the previous week's revised level of 217,000. The Labor Department
also said the less volatile four-week moving average crept up to 221,250, an
increase of 2,250 from the previous week's revised average of 219,000. Nasdaq
surged 57.79 points or 0.73 percent to 7967.76 and S&P 500 was up by 11.14
points or 0.38 percent to 2924.92, while Dow Jones Industrial Average declined
10.24 points or 0.04 percent to 26526.58.
Crude oil futures ended
marginally higher on Thursday as traders awaited pivotal trade discussions out
the Group of 20 leaders summit and watched simmering tensions between the US
and Iran that could pose a risk to global supplies. Meanwhile, the Organization
of the Petroleum Exporting Countries (OPEC) and its allies will hold meetings
on July 1-2, after the original date was moved from June 25-26. Iran and any
potential regional disruptions could feature as part of the talks. The Energy Information
Administration (EIA) reported that domestic supplies of natural gas rose
slightly less than expected, by 98 billion cubic feet for the week ended June
21. Benchmark crude oil futures for August rose 5 cents or nearly 0.1 percent
to settle at $59.43 a barrel on the New York Mercantile Exchange. August Brent
gained 6 cents or about 0.1 percent to settle at $66.55 a barrel on London's
Intercontinental Exchange.
Erasing all of the initial losses, Indian rupee ended
marginally higher on Thursday on selling of dollars by banks and exporters.
Sentiments remained positive 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. An easing of global oil prices also supported the rupee. On
the global front, dollar hovered near a one-week high against the yen on
Thursday, propped up by hopes of Sino-US trade talk progress though investors
were nonetheless cautious ahead of a meeting between leaders of the two powers
in Japan in days ahead. Finally, the rupee ended at 69.07, 8 paise stronger
from its previous close of 69.15 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4286.95 crore against gross selling of Rs 4086.95 crore, while
in the debt segment, the gross purchase was of Rs 3391.36 crore with gross
sales of Rs 2865.95 crore. Besides, in the hybrid segment, the gross buying was
of Rs 1650.23 crore against gross selling of Rs 1.41 crore.
The US markets ended mostly
higher on Thursday ahead of US-China trade talks, but Boeing weighed on the Dow
amid expectations that the 737 Max will remain out of service for longer. Asian
markets are trading in red on Friday as investors await the kickoff of the G-20
summit in Osaka, Japan, where US President Donald Trump and Chinese President
Xi Jinping are expected to meet amid the ongoing trade standoff. Indian markets
ended the June F&O expiry session almost flat, with negative bias, on
Thursday, as gains in auto and realty sectors offset by losses in IT and metal
space. Today, the markets are likely to make cautious start amid mixed cues
from global markets. There will be some cautiousness with a report that India's
monsoon rains were below average for the fourth straight week, with rainfall
scanty over central and western parts of the country in the week ended on June
26, raising concerns about major crop production and the impact on the nation's
economy. However, some respite may come later in the day with the Reserve Bank
of India's (RBI's) Financial Stability Report (FSR) stating that the financial
system remains stable despite some dislocation of late. It said the proportion
of commercial lenders' non-performing assets (NPAs) may fall slightly to 9% by
March, but recommended that the vigil on non-banking finance companies (NBFCs)
continues. Besides, Governor Shaktikanta Das called for more cooperation
between the government and the RBI to help boost the sagging growth engine and
to ensure systemic stability. Meanwhile, SEBI has approved a new framework for
issuance of differential voting right (DVR) shares from July and banned mutual
funds from entering into standstill agreements with any company. Besides, the
government has decided to constitute a working group for the revision of the
current series of Wholesale Price Index (Base 2011-12). The current series of
WPI with 2011-12 as base year was introduced in May 2017. There will be some
buzz in the cement stocks with ICRA's report stating that owing to slower pace
of project execution, the demand for cement has been tepid in the first quarter
of the current fiscal. The agency, however, expects the demand to pick up from
the third quarter of the fiscal, post-monsoon season and expects it to increase
by nearly seven per cent during for FY2020. There will be some reaction in
logistic stocks with Union Minister Piyush Goyal's statement that Ministries of
commerce, road, civil aviation and railways should work in coordination with an
aim to cut the logistics cost to 9 per cent of GDP from the current 14 per
cent. There will be some reaction in telecom stocks with Moody's Investors
Service's statement that the proposed spectrum auctions in India, which
includes radiowaves for 5G technology, are likely to be held only in the second
half of 2020 or later, given the stressed balance sheets of telecom operators.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,841.55
|
11,804.68
|
11,894.78
|
BSE Sensex
|
39,586.41
|
39,458.83
|
39,765.61
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
512.81
|
112.40
|
111.30
|
114.00
|
NTPC
|
387.90
|
140.15
|
138.80
|
141.75
|
ONGC
|
367.38
|
170.60
|
167.97
|
172.52
|
SBIN
|
296.58
|
362.15
|
358.60
|
364.35
|
Tata Motors
|
266.13
|
165.85
|
161.97
|
168.87
|
Infosys' subsidiary -- EdgeVerve Systems has launched AssistEdge Engage at CCW Vegas.
M&M's step down subsidiary -- Mahindra International UK has ceased to be a subsidiary of Mahindra Overseas Investment Company Mauritius and that of the Company.
SBI is planning to raise Additional Tier 1 Capital by way of issuance of Basel-III compliant debt instrument in USD and/ or INR from domestic/International market during FY 2020.
HCL Technologies will offer more than 3,000 job opportunities to freshers at its Noida campus.