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NSE Intra-day chart (05 March 2019)
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Market Commentary 06 March 2019
Markets to open marginally in green amid mixed Asian cues


Indian equity benchmarks ended Tuesday's trading session on jubilant note, with both Sensex and Nifty posting stellar gains of over a percent. The start of the day was cautious, impacted by the Finance Ministry's statement that Goods and Services Tax (GST) collections in February dropped to Rs 97,247 crore from Rs 1.02 lakh crore in the previous month. The government has lowered the GST collection target for current fiscal to Rs 11.47 lakh crore in the revised estimates, from Rs 13.71 lakh crore budgeted initially. However, key indices soon gained traction, as India's services sector gathered momentum in the month of February, with a quicker expansion in new work supporting a faster increase in output and solid job creation. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index rose to 52.5 in February from 52.2 in January. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 53.8 in February as against 53.6 in January. Rally continued during the second half of the session, tracking firm European markets. The street remained positive, amid reports that the income tax e-returns filed for the April-February period has grown nearly 30% compared with the corresponding period in FY18. While almost 6.4 crore taxpayers filed returns in the first 11 months of the fiscal, the government is expecting 7.6 crore returns to be filed by the end of FY19 against 6.7 crore in FY18. Domestic sentiments were also buoyed by India's chief economic adviser Krishnamurthy Subramanian's statement that India's next government will have to bring in land, labour and financial sector reforms to improve the productivity of the manufacturing sector and boost economic growth. Meanwhile, the Reserve Bank of India's (RBI) report showed that Indian companies borrowed $2.42 billion from overseas markets in the month of January 2019 through external commercial borrowing (ECB), down by 45 percent from the year-ago period. The borrowings though ECBs were $5.40 billion in January last year. Finally, the BSE Sensex surged 378.73 points or 1.05% to 36,442.54, while the CNX Nifty was up by 123.95 points or 1.14% to 10,987.45.


The US markets settled slightly lower on Tuesday as investors looked beyond US-China trade talks for further catalysts to trade on. Trading was somewhat subdued as investors awaited more concrete developments following reports that US and Chinese negotiators were close to completing a trade deal. Further, the impending release of the Labor Department's closely watched monthly jobs report on Friday also kept some traders on the sidelines. Besides, there was some cautiousness following China cut its economic growth target for this year to between 6% and 6.5%. However, downside remained capped as investors cheered stronger-than-expected quarterly results out of retailer Target, sending its shares up around 5%. The company posted earnings per share of $1.53 and revenue of $22.977 billion. On the economic front, after reporting a slowdown in the rate of growth in US service sector activity in the previous month, the Institute for Supply Management (ISM) released a report showing growth rebounded by much more than expected in the month of February. The ISM said its non-manufacturing index climbed to 59.7 in February after falling to 56.7 in January, with a reading above 50 indicating growth in the service sector. Meanwhile, new home sales in the US unexpectedly showed a notable increase in the month of December, according to a report released by the Commerce Department. The report said new home sales jumped by 3.7% to an annual rate of 621,000 in December after surging up by 9.1% to a revised rate of 599,000 in November. Dow Jones Industrial Average declined 13.02 points or 0.05 percent to 25806.63, S&P 500 lost 3.16 points or 0.11 percent to 2789.65 and Nasdaq was down by 1.21 points or 0.02 percent to 7576.36.


Crude oil futures ended marginally lower on Tuesday following a lower forecast on Chinese economic growth that may hurt demand for energy. China cut its economic growth target for this year to between 6% and 6.5%. Negative sentiment also generated on report that Libya is planning to boost crude production following the reopening of its largest oil field. Libya has reopened the El Sharara oil field in Libya, which had been closed since December. Libya's National Oil Corporation expects to see a return to regular oil production from the oil field in the coming days. However, Brent crude managed to finish modestly higher, getting a lift from ongoing cuts among members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies. Benchmark crude oil futures for April lost 3 cents or 0.05 percent to settle at $56.56 a barrel on the New York Mercantile Exchange. However, May Brent crude added 19 cents or 0.3 percent to settle at $65.86 a barrel on London's Intercontinental Exchange.


Indian rupee ended significantly higher against dollar on Tuesday, on persistent selling of the American currency by exporters. Rupee throughout the day remained positive, taking support with a private survey showing that activity in India's huge service sector accelerated in February, partly due to an increase in domestic new business which induced firms to maintain a solid hiring pace. Some optimism also came in with India's chief economic adviser Krishnamurthy Subramanian's statement that India's next government will have to bring in land, labour and financial sector reforms to improve the productivity of the manufacturing sector and boost economic growth. Moreover, a spectacular relief rally in local equities gave the uptrend some momentum. On the global front, dollar held near a two-week high against its key rivals on Tuesday, underpinned by a resilient economy and a flagging euro ahead of an upcoming European Central Bank policy meeting. Finally, the rupee ended at 70.49, 43 paise stronger from its previous close of 70.92 on Friday.


The FIIs as per Tuesday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 9470.12 crore against gross selling of Rs 5304.91 crore, while in the debt segment, the gross purchase was of Rs 1132.84 crore with gross sales of Rs 693.84 crore. Besides, in the hybrid segment, gross selling was of Rs 2.01 crore against no buying.


The US markets ended marginally lower on Tuesday as investors weighed ongoing trade negotiations between China and the US. Asian markets are trading mixed on Wednesday as investors awaited fresh directional cues from US-China trade negotiations. Indian markets extended their gains for second consecutive session and settled near intraday high levels on Tuesday on intense buying mainly in auto, financial and energy counters amid easing of geo-political tensions and positive macroeconomic outlook. Today, the start is likely to be slightly in green. Traders will be getting some encouragement with the Reserve Bank of India (RBI) stating that it would infuse Rs 12,500 crore into the financial system through open market operations (OMO). The decision is based on an assessment of liquidity conditions and also of durable liquidity needs. Traders may take note of report that Finance Minister Arun Jaitley assured the industry that the government would strive to lower tax rates and broaden the tax base to increase revenue collection. The minister also called upon the industry to pass on benefits of GST rate reduction to consumers. However, the trade may remain range-bound tracking lackluster global cues. There may be some cautiousness with the Centre for Monitoring Indian Economy's (CMIE) latest report showing that the unemployment rate in India rose to 7.2% in February 2019, the highest since September 2016, and up from 5.9% in February 2018. The unemployment rate has climbed despite a fall in the number of job seekers. There will be buzz in the retail sector stocks with Niti Aayog CEO Amitabh Kant's statement that E-commerce has revolutionised the retail sector in India and will play a major role in the country's growth story going forward. There will be some reaction in cement industry stocks with Crisil's report that the recent steep hike in cement prices expected to boost operating profitability of cement manufacturers. It added that the price hikes, coupled with falling costs and rising demand growth, will enable 200-250 basis points on-year improvement in margins in the current quarter. There will be some buzz in the sugar sector stocks with the government's statement that Sugar mills can sell 24.5 lakh tonne of the sweetener in the open market in the current month. Mills are allowed to sell sugar at a minimum selling price of Rs 31 per kg.


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



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Nifty Top volumes




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Tata Motors





Yes Bank















Indiabulls Housing Finance






  • Wipro and Risklens have entered into partnership to deliver quantitative cyber risk assessments to enterprise customers arid government organizations. 
  • L&T's arm - L&T Construction's Water & Effluent Treatment Business has secured orders from prestigious clients across varied states in India in range of Rs 5000 to Rs 7000. 
  • ICICI Bank will acquire 9.9% stake in Kisan Rural Finance for cash consideration of Rs 17.82 crore. 
  • Tata Motors' premium SUV, Harrier, will be the Official Partner for the VIVO IPL 2019.
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