Indian equity
benchmark ended the choppy day of trade in red terrain on Thursday, with
frontline gauges breaching their crucial 35,600 (Sensex) and 10,750 (Nifty)
levels, as traders booked some of their gains from previous two sessions'
rally, ahead of June quarter earnings season to be starting next week. Traders
remained cautious on report that the Securities and Exchange Board of India has
issued a fresh show-cause notice to the National Stock Exchange and some of the
key officials - including former CEOs Ravi Narain and Chitra Ramkrishna - on
Wednesday, asking them to explain the allegations of preferential access to a
few high-frequency traders and brokers to its trading platform. Traders also
remained cautious with global credit rating agency, Moody's Investors Services'
latest report that high oil price is the biggest risk to India's Gross domestic
product (GDP) growth. However, it also said that risks to sovereign credit
dynamics from oil has lessened in recent years following subsidy reforms to petroleum
and diesel fuel and only liquefied petroleum gas and kerosene oil remain
subsidized. Selling in Reliance Industries too dampened sentiments post its
41st AGM. However, losses remained capped as traders got some solace with Union
Minister Arun Jaitley's statement that the government's fiscal deficit target
would not be breached on account of higher MSP for 14 crops as large
provisioning for food subsidy has already been made in the Budget for current
fiscal. Market participants also took some comfort with Niti Aayog's
Vice-Chairman, Rajiv Kumar's statement that food and fuel are not contributing
to the overall inflationary pressures in the economy. So this constant talk
about inflationary pressures because of the MSP is quite misplaced. Finally,
the BSE Sensex declined 70.85 points or 0.20% to 35,574.55, while the CNX Nifty
was down by 20.15 points or 0.19% to 10,749.75.
The US markets ended in green on
Thursday on the back of easing trade concerns amid reports Trump might suspend
threats to impose tariffs on cars imported from Europe if duties on U.S. cars
are lifted. Positive sentiment was also generated by a report from the
Institute for Supply Management showing growth in activity in the U.S. service
sector unexpectedly accelerated in the month of June. The ISM said its
non-manufacturing index rose to 59.1 in June after climbing to 58.6 in May,
with a reading above 50 indicating growth in the service sector. The street had
expected the index to edge down to 58.3. Meanwhile, a report from payroll
processor ADP showed private sector employment increased by less than expected
in the month of June. ADP said private sector employment climbed by 177,000
jobs in June after jumping by an upwardly revised 189,000 jobs in May. A
separate report from the Labor Department showed a modest uptick in first-time
claims for U.S. unemployment benefits in the week ended June 30th. The report
said initial jobless claims inched up to 231,000, an increase of 3,000 from the
previous week's revised level of 228,000. The Dow Jones Industrial Average
gained 181.92 points or 0.75 percent to 24356.74, the S&P 500 rose 23.39
points or 0.86 percent to 2736.61 and the Nasdaq was up by 83.75 points or 1.12
percent to 7586.43.
Crude oil
futures ended lower on Thursday, with benchmark suffering from a drop to its
lowest finish in just over a week, after data revealed a surprise run-up in
domestic crude inventories- the first in a month. Energy Information
Administration (EIA) report showed that crude stockpiles rose by 1.2 million
barrels for the week ended June 29. Further, Trump's recent demand that the
Organization of the Petroleum Exporting Countries move to counteract a rally
that has prices near three and half year high also contributed to pressure on
oil prices. Benchmark crude oil futures for August delivery fell $1.20 or 1.6
percent to settle at $72.94 a barrel on the New York Mercantile Exchange.
September Brent crude dropped 85 cents or 1.1 percent at $77.39 a barrel on
London's Intercontinental Exchange.
Extending
previous session's losses, Indian rupee ended lower against dollar on Thursday,
on increased demand for the US currency from importers. Sentiments remained
down-beat with a private report stating that the government decision to
significantly increase minimum support price (MSP) for several kharif crops to
boost farmers' incomes could push inflation upwards and widen the fiscal
deficit. The Reserve Bank of India could subsequently raise interest rates to
counter the potential inflationary impact. Besides, lackluster trade in the
equity markets also affected the rupee value. However, losses remained capped
with Commerce and Industry Minister Suresh Prabhu's statement that India's
export is likely to grow at around 20% in June month. He also noted that India
will not be affected by the headwinds at global trade level. On the global
front, pound rose to a seven-day high on Thursday as traders strengthened bets
on an interest rate hike this summer, but concerns about a crucial Brexit
meeting on Friday kept gains in check. Finally, the rupee ended at 68.93, 19
paise weaker from its previous close of 68.74 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 5212.17 crore against gross selling
of Rs 4137.78 crore, while in the debt segment, the gross purchase was of Rs
657.58 crore with gross sales of Rs 388.56 crore. Besides, in the hybrid
segment, the gross buying was of Rs 7.72 crore against gross selling of Rs 1.65
crore.
The US markets ended higher on
Thursday, on easing trade concerns amid reports that President Donald Trump
might suspend threats to impose tariffs on cars imported from Europe if duties
on US cars are lifted. Asian markets were trading mostly in red on Friday, with
investors bracing for developments on the trade front as markets awaited
tariffs from the US and China to take effect later today. Indian markets ended
Thursday's session in red terrain, as investors remained on sidelines ahead of
second quarter earnings season to be starting next week. Today, markets likely
to make a pessimistic start amidst caution ahead of a US deadline to impose
tariffs on Chinese imports later in the day. Traders may remain concern on
private report that the increase in minimum support prices (MSP) by the
government is set to bump up the Reserve Bank of India's already heightened
inflation forecast and will likely lead to higher interest rates at the next
monetary policy review on August 1 and possibly another before the year ends.
However, some support may come later in the day with private report that a
lower base in the previous year's quarter and likely good show by select
companies in sectors such as automobiles, capital goods, FMCG, IT, and metals
should help the Nifty 50 companies report a double-digit growth in aggregate
sales and profits for the June 2018 quarter. Telecom stocks will be in focus
after telecom regulator Trai prescribed amendments to the interconnect
regulations, proposing certain changes in terms and conditions for an operator
to seek fresh call connect ports from other telcos. There will be buzz in IT
space on report that Nasscom chairman Rishad Premji and president Debjani Ghosh
said US administrative measures on immigration have not had a significant impact on Indian IT, and that
the industry has adjusted by drastically reducing dependence on H-1B visas.
Shares of all the three broadband service providers are likely to be in focus,
after Reliance Industries Chairman Mukesh Ambani unveiled an ultra-high-speed
fixed line fibre broadband for homes and enterprises across 1,100 cities on
Thursday.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,749.75
|
10,721.98
|
10,781.78
|
BSE Sensex
|
35,574.55
|
35,478.81
|
35,709.28
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
212.40
|
348.65
|
341.23
|
353.43
|
Tata Motors
|
208.20
|
261.55
|
254.82
|
266.02
|
Reliance Industries
|
187.19
|
964.50
|
945.93
|
995.73
|
ITC
|
154.73
|
272.50
|
266.07
|
276.37
|
Vedanta
|
126.44
|
221.30
|
217.87
|
225.87
|
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