Daily Newsletter
NSE Intra-day chart (31 May 2019)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Market Commentary 03 June 2019
Markets to open in green terrain despite weak GDP data


Indian equity markets failed to sustain initial rally on Friday, as Sensex and Nifty settled with notable losses of 117 and 23 points, respectively. The markets made a firm start of the day, aided by industry body FICCI's economic outlook survey showing that India's GDP is likely to grow 6.5 per cent in the fourth quarter ended March 2019. FICCI survey has put forth an annual median GDP growth forecast for 2019-20 at 7.1 per cent and the projection for fiscal 2020-21 has been put at 7.2 per cent. Sentiments on the street were also positive with NITI Aayog Vice Chairman Rajiv Kumar's statement that a slew of big-bang economic reforms that should please foreign investors are likely to be pursued in the first 100 days of Indian Prime Minister Narendra Modi's second term. Kumar further said that the reforms will include changes in labour laws, privatisation moves, and creation of land banks for new industrial development. However, markets turned negative in afternoon deals to end lower, on the back of weak cues from global markets. Domestic sentiments got hit amid reports that the rupee witnessed high volatility in the forex market following the allocation of key portfolios in the newly elected government. Traders took a note of reports that the Reserve Bank of India (RBI) has announced calendar for issuance of Sovereign Gold Bonds for the first half of the current fiscal. The Sovereign Gold Bonds (SGB) will be issued every month from June 2019 to September 2019. Investors also took a note of a report that US-based India-centric business advocacy and strategic group has sought establishing an India Trade Representative under the Prime Minister's Office for all international trade negotiations to be handled by one office with a focused approach. Finally, the BSE Sensex lost 117.77 points or 0.30% to 39,714.20, while the CNX Nifty was down by 23.10 points or 0.19% to 11,922.80.


The US markets ended significantly lower on Friday, with losses of around one and a half percent each, after President Donald Trump revealed plans to use tariffs to compel Mexico to make efforts to stop the flow of illegal immigrants across the country and into the US. The Dow dropped to a four-month closing low, while the Nasdaq and the S&P 500 hit their lowest closing levels in well over two months. Trump said on June 10, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. He added that the Tariff will gradually increase until the Illegal Immigration problem is remedied, at which time the Tariffs will be removed. Trump revealed in a subsequent White House statement the tariffs will be raised to 10 percent on July 1, if the crisis persists, with tariffs eventually rising as high as 25 percent by October 1. The president argued the sustained imposition of tariffs will produce a massive return of jobs back to US, describing the move as an effort to firmly and forcefully stand up for America's interests. Meanwhile, reflecting the collapse of US-China trade talks, the University of Michigan released a report showing a bigger than expected downward revision to its reading on US consumer sentiment in the month of May. The report said the consumer sentiment index for May was downwardly revised to 100 from the preliminary reading of 120.4. The index remains notably higher than the final April reading of 97.2. Dow Jones Industrial Average slipped 354.84 points or 1.41 percent to 24815.04, Nasdaq declined 114.57 points or 1.51 percent to 7453.15 and S&P 500 was down by 36.80 points or 1.32 percent to 2752.06.


Crude oil futures ended sharply lower and settled at near 16-week low on Friday as concerns over the global economy and demand for oil heightened amid rising worries about trade dispute. The US President Donald Trump's announcement of new tariffs on all goods coming from Mexico has dented investor sentiment, which is already down due to the ongoing US-China trade spat. Trump said that from June 10, a 5% tariff would be imposed on goods imported from Mexico and then added that the tariff would slowly rise until the problem of illegal immigration of drugs and people into the US from Mexico is resolved. At the same time, more evidence this week of solid US oil supplies continued to complicate the management of the Organization of the Petroleum Exporting Countries' own production cut, a policy due for review later in June. Benchmark crude oil futures for July declined $3.09 or 5.5 percent to settle at $53.50 a barrel on the New York Mercantile Exchange. July Brent crude was down by $2.38 or 3.6 percent to settle at $64.49 a barrel on London's Intercontinental Exchange.


Snapping three day falling streak, Indian rupee staged a smart recovery against dollar on Friday, following heavy dollar selling from banks and exporters. Sentiments turned optimistic with industry body FICCI's economic outlook survey showing that India's GDP is likely to grow 6.5 per cent in the fourth quarter ended March 2019. FICCI survey has put forth an annual median GDP growth forecast for 2019-20 at 7.1 per cent and the projection for fiscal 2020-21 has been put at 7.2 per cent. Besides, the dollar losing muscle against other currencies overseas helped the domestic currency rebound. However, gains remain capped as cautiousness remained in markets ahead of March quarter GDP data, scheduled for release later in the day. On the global front, Japanese yen jumped against the dollar after U.S. President Donald Trump's shock threat to slap new tariffs on Mexico, which risked tipping an already struggling global economy into recession. Finally, the rupee ended at 69.70, 17 stronger weaker from its previous close of 69.87 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 7552.41 crore against gross selling of Rs 5479.78 crore, while in the debt segment, the gross purchase was of Rs 836.06 crore with gross sales of Rs 1513.69 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.89 crore against gross selling of Rs 1.79 crore.


The US markets ended sharply lower on Friday as investors feared President Donald Trump's surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China. Asian markets are trading mixed on Monday amid increasing concerns over the state of global trade. Indian markets gave up early gains and settled in red territory on Friday on account of profit booking by investors amid weak cues from Asian peers. Today, the start of new week is likely to be malignly in green as tax mop-up crosses Rs 1 lakh crore for the third straight month. The Goods and Services Tax (GST) collection in May came in at Rs 1,00,289 crore, clocking a growth of about 7% compared with the mop-up of Rs 94,016 crore in the corresponding month last fiscal. Some support will also come with report that overseas investors pumped in a net amount of Rs 9,031 crore into the Indian capital markets in May on expectations of more business-friendly measures following the BJP's landslide victory in the general elections. Investors will be eyeing manufacturing PMI data to be out later in the day. Traders will also be keenly eyeing the Reserve Bank of India's (RBI) second bi-monthly monetary policy statement for 2019-20 later in the week. There is expectation that the RBI may cut repo rate by 25 basis points. Besides, the fiscal deficit for 2018-19 came in at 3.39% of GDP, marginally lower than 3.4% projected in the revised estimates of the Budget, mainly due to lower expenditure and increase in non-tax revenue. However, there may be some cautiousness as the Central Statistics Office (CSO) data showed that economic growth slowed to a 5-year low of 5.8% in the fourth quarter of 2018-19, pushing India behind China, due to poor showing by agriculture and manufacturing sectors. For full year 2018-19, the economic growth is estimated at 6.8%, compared 7.2% in the previous year. Traders will also be concerned about a report that the growth of eight core infrastructure sectors slowed down to 2.6% in April, from 4.7% in the same month of pervious year, due to negative growth in crude oil, natural gas and fertiliser output. Besides, confirming unemployment rate projected in a pre-election leaked report, the government said joblessness in the country was 6.1% of total labour force during 2017-18, the highest in 45 years. There will be some buzz in the banking sector stocks with rating agency Fitch's statement that the performance of India's banking sector is likely to be below average for the next two years because it is struggling with poor asset quality and weak core capitalization. There will be some reaction in auto industry stocks reacting to their monthly sales numbers.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes




Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank




















Coal India






  • ONGC's overseas subsidiary -- ONGC Videsh has registered increase in production of Oil & Gas by 4.7% with net production of 14.833 MMTOE in FY19, as compared to 14.164 MMTOE in FY18. 
  • Maruti Suzuki NEXA, with 28 outlets spread across 15 cities in Telangana and Andhra Pradesh, has continued to reinforce its presence in these two states. 
  • Bharti Airtel's average revenue per user rose by 6.5 percent to Rs 123 in Q4FY19 which is still not at sustainable level for the sector. 
  • Larsen & Toubro has acquired 26,974 equity shares of Mindtree on May 30, 2019.
News Analysis