Indian benchmark indices
showcased yet another courageous performance and went on to outclass indices
around the world by vivaciously rallying by around a percentage in the session
and settling above the psychological 9,550 (Nifty) and 31,000 (Sensex) levels
for the first time ever. Thursday's optimism got spilled over into the Friday's
session helping the frontline indices in extending the winning momentum for
second successive session as higher derivatives rollover led to strong
follow-up buying in index heavyweights on the first day of June series. Broader
market outperformed benchmark indices with the S&P BSE Midcap and the
S&P BSE Smallcap indices gaining over one and half a percent each.
Investors continued to build hefty positions across the board as sentiments got
a boost after the report that India retained its numero uno position being the
world's top most greenfield FDI investment destination for the second
consecutive year, attracting $62.3 billion in 2016. FDI by capital investment
saw an increase of 2%to $62.3 billion in 809 projects during 2016 in India. The
report has pointed that the global investment landscape has changed
considerably in the last year as FDI gravitated to locations experiencing the strongest
economic growth, while locations in recession or facing high levels of
uncertainty saw major declines. Some support also came with private weather
forecaster Skymet's statement that the increase in pre-monsoon showers across
India is hinting at the arrival of monsoon 2017, which is not very far away.
The weather forecasting agency predicted that monsoon will make an onset over
Kerala by May 29, with a margin of error of three days. Meanwhile, Airline
stocks gained traction on expectations that a slide in oil prices would reduce
carriers' fuel cost. Crude oil skidded 5% after OPEC and allied producers
announced extended output cuts that disappointed investors. Both Jet Airways
and Global Vectra Helicorp jumped over 3%, while InterGlobe Aviation rose over
a percent. Finally, the BSE Sensex gained 278.18 points or 0.90% to 31028.21,
while the CNX Nifty was up by 85.35 points or 0.90% to 9,595.10.
After trending higher over the
past several sessions, the US markets ended the choppy session flat on Friday,
as traders expressed some uncertainty about the near-term outlook for the
markets following recent volatility. Some traders were also already away from
their desks, looking to get a head start on the long Memorial Day weekend.
Traders failed to get any sense of relief with the latest economic data,
including a report from the Commerce Department showing that the U.S. economy
grew by much more than initially estimated in the first three months of the
year. The Commerce Department said gross domestic product climbed by 1.2
percent in the first quarter compared to the previously reported 0.7 percent
increase. The street had been expecting a more modest upward revision to the
pace of GDP growth to approximately 0.9 percent. A separate Commerce Department
report showed that new orders for manufactured durable goods pulled back by
less than expected in the month of April. The report said durable goods orders
slid by 0.7 percent in April after jumping by an upwardly revised 2.3 percent
in March. The Nasdaq gained 4.94 points or 0.08 percent to 6,210.19 and S&P
500 was up by 0.75 points or 0.03 percent to 2,415.82, while Dow Jones
Industrial Average edged lower by 2.67 points or 0.01 percent to 21,080.28.
Crude oil futures showed some
recovery on Friday, after industry data showed the pace of increases in the
U.S. rig count slowed. Oil Services firm Baker Hughes in its weekly report said
that Drillers added two oil rigs for a total of 772 last week, though US energy
firms added oil rigs for a record 19 weeks in a row but traders sensed it an
end to the global supply glut that has kept oil prices below $50 for much of
the past year. Meanwhile, Saudi Arabia's energy minister Khalid Al-Falih, said
he expected a "healthy return" for US shale but remained confident that a boom
in US shale won't derail OPEC's effort to tackle the demand and supply
imbalance. Benchmark crude oil futures for July delivery ended higher by $0.90 or
1.8 percent to $49.80 on the New York Mercantile Exchange. In London, Brent crude
for July delivery ended up by 1.2 percent to $52.09 on the ICE.
Maintaining
its good form for the third day, Indian rupee ended higher against dollar on
Friday due to sustained selling of the US currency by exporters and banks.
Sentiments remained upbeat with private weather forecaster Skymet's statement
that the increase in pre-monsoon showers across India is hinting at the arrival
of monsoon 2017, which is not very far away. Some support also came with a
private report stating that India maintained its number one position of being
world's top most greenfield FDI investment destination for the second year in a
row, attracting $62.3 billion in 2016. The rupee got additional support with
increased foreign fund inflows along with higher domestic equity market, which
zoomed to new highs. On the global front, British pound fell sharply against
major crosses on Friday, after a poll showed a further narrowing of the
Conservative Party's lead before the U.K.'s general election. Finally, the
rupee ended at 64.44, 17 paise stronger from its previous close of 64.61 on
Thursday.
The FIIs as per Friday'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 9181.50 crore against gross
selling of Rs 8392.30 crore, while in the debt segment, the gross purchase was
of Rs 429.86 crore with gross sales of Rs 636.57 crore.
The US markets made a mixed
closing in the last session after a lackluster trade, despite a report showing
that US economy grew by much more than initially estimated in the first
quarter. GDP climbed by 1.2 percent compared to the previously reported 0.7
percent increase. The Asian markets have made mostly a positive start, while
some of the markets are closed, Japanese and South Korean markets climbed amid
low trading volume. Though, there was some cautiousness to as the North Korea
fired another missile, which appeared to be a Scud variant. The Indian markets
rallied in the last session with benchmarks adding around a percent to reach
their fresh record highs. Some upbeat earnings and easing concerns over Fed
rate hikes boosted the domestic market sentiments. Today, the start of the new
week is likely to be in green but markets may remain cautious with the government
slated to unveil GDP figures for the March quarter on Wednesday. Meanwhile, Confederation
of All India Traders (CAIT) has said that classification of different items
under various tax slabs of GST has created an environment of anxiety and
concern among the trading community across the country. Market will be getting
some support with the Employees Provident Fund Organisation (EPFO) approving
hike in investment limit in exchange traded funds (ETFs) to 15 per cent, from
the existing 10 per cent. There will be some buzz in the banking stocks, as the
Finance Minister Arun Jaitley has said that poor performance by private
investors and banks still remains a challenge for the Indian economy. He also
said the banks have to recover their bad loans to boost private investment, as
domestic private investment needs to pick up. In the peak earnings season there
will be lots of important earnings announcements to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9595.10
|
9525.37
|
9634.87
|
BSE Sensex
|
31028.21
|
30824.50
|
31153.00
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ITC
|
217.42
|
309.10
|
301.17
|
315.42
|
ICICI Bank
|
193.96
|
321.55
|
317.07
|
324.52
|
Vedanta
|
183.69
|
242.65
|
234.20
|
248.50
|
Hindalco
|
178.04
|
198.40
|
190.82
|
204.57
|
Tata Steel
|
162.40
|
511.75
|
493.32
|
522.52
|
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