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NSE Intra-day chart (04 March 2016)
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Market Commentary 08 March 2016
Markets to make a soft start on somber regional cues

Friday's trading session was of consolidation as the Indian frontline indices appeared a bit fatigued and remained in directionless trajectory for most part of the day. Nevertheless, the benchmarks managed to extend the winning momentum for the fourth consecutive day of trade, as local sentiments continued to show signs of improvement. Markets got some support with Prime Minister Narendra Modi's statement that India is set to take a quantum leap in infrastructure and the government is committed to strengthening it. The Prime Minister has unveiled an ambitious Rs 50,800 crore Setu Bharatam project, under which a total of 208 railway crossings will be replaced by rail over bridges (ROBs). As part of the project, 1,500 bridges of the British era will be overhauled at an estimated expenditure of Rs 30,000 crore. Investors also got some comfort with the report that foreign portfolio investors (FPIs) bought shares worth a net Rs 911.98 crore on March 03, 2016. Besides, firm global cues coupled with the appreciation in rupee value against the dollar added to the optimistic sentiments. Staying on the upward trajectory for the sixth straight day, Indian rupee gained another 13 paise to trade at 67.21 against the US dollar at the time of equity markets closing. Some support also came with Minister of State for Finance Jayant Sinha's statement that the government has a ‘very good sense' of the problem of bad loans in banking sector and will continue to provide funds to strengthen state-owned banks. However, investors remained cautious with weak services PMI data released last day. Growth in India's services firms fell to a three-month low of 51.4 in February from 54.3 in January, as output rose only marginally. On the global front, Asian stock markets ended mostly in green on Friday, while European shares made a firm start. Back home, after getting strong start, Indian equity benchmarks dropped into the negative territory, lacking any significant upside cues and slipped to intraday lows in mid morning session. However, the psychological 7,450 and 24,550 levels proved as strong support levels for the key gauges as the benchmarks soon recovered from the lows. Finally, the BSE Sensex gained 39.49 points or 0.16% to 24646.48, while the CNX Nifty rose 9.75 points or 0.13% to 7,485.35. Indian markets remained closed on Monday on account of Mahashivratri.


The US markets closed mostly higher on Monday, allowing the S&P 500 and Dow industrials to extend their winning streak to five straight sessions, partly due to a jump in oil prices. But the Nasdaq Composite finished lower, weighed by losses in formerly highflying technology stocks. On the economy front, consumer credit growth decelerated sharply in January as consumers cut back on credit card use. Overall consumer credit increased 3.6% in January, or by a seasonally adjusted annual rate of $10.5 billion. This is the smallest percentage increase since March 2013. It's also a sharp deceleration from December's 7.3%, or $21.4 billion, gain. The slowdown brought consumer credit below expectations. Total consumer borrowing, which does not include mortgage debt, now totals $3.5 trillion. Credit card borrowing declined 1.4% in January following gains averaging 7.5% over the past two months. The Dow Jones Industrial Average added 67.18 points or 0.40 percent to 17,073.95, the S&P 500 gained 1.77 points or 0.09 percent to 2,001.76 while, the Nasdaq was down 8.77 points or 0.19 percent to 4,708.25.   


Crude oil futures extending their gains surged on Monday on a report that OPEC producers are crafting a strategy to stabilize the price of oil at $50 a barrel. Prices also got support with the Energy Information Administration (EIA) report which sees U.S. shale oil output falling by 106,000 barrels a day in April, helping to fuel oil's advance. Meanwhile, production in Russia and Saudi Arabia remains near-record monthly highs above 10 million bpd. Benchmark crude oil futures for April delivery surged by $1.99 or 5.54 percent to $37.91 a barrel after trading in a range of $36.09 and $38.09 a barrel on the New York Mercantile Exchange. In London, Brent crude for May delivery closed at $40.80, up by $2.09 or 5.38 percent on the ICE.


Continuing its upward trajectory for the sixth straight day, Indian rupee ended stronger against dollar on Friday due to selling of the greenback by banks and exporters. Rupee headed for its biggest weekly gain since May 2014 as foreign funds pumped money into local stocks amid a revival in global sentiment for equities. Some support came with Prime Minister Narendra Modi's statement that India is set to take a quantum leap in infrastructure and the government is committed to strengthening it. However, dollar's strength against other currencies limited the gains. Money market will remain closed on Monday on account of Mahashivratri. On the global front, yen saw some initial strength on Friday after BOJ Gov Kuroda rules out the chance of another rate cut in March. Finally, the rupee ended at 67.09, 24 paise stronger from its previous close of 67.33 on Thursday. Indian money markets remained closed on Monday on account of Mahashivratri.


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 4366.69 crore against gross selling of Rs 3257.32 crore, while in the debt segment, the gross purchase was of Rs 1073.98 crore with gross sales of Rs 1211.92 crore.         


The US markets extended their gaining streak with the help of surge in energy stocks and the Dow rose for a fifth consecutive session. The Asian markets have made mostly a weak start led by the Chinese market which has tumbled over two percent ahead of the release of trade data that may show a deepening slump in the nation's trade. Also, the Chinese foreign-exchange reserves fell by $28.6 billion to $3.2 trillion last month. The Indian markets before going for a long weekend continued their gaining streak albeit modestly on Friday. Today, the start is likely to be cautious tailing the somber global cues. There will be some concern with the MNI Consumer Sentiment index falling to 108.9 in February from 109.8 in January, indicating sluggish sentiment among end consumer as they grapple with volatile markets and deteriorating personal finances. However, the markets may get some support with international rating agency Fitch maintaining India's growth forecast at 7.5 percent for the financial year 2015-16 and projecting the GDP growth of 7.7 per cent in the FY2017, which is 0.3 per cent lower than its December forecast of 8 per cent, but much in line with the government's projection. The agency also sees RBI cutting key policy rates by 25 basis points and brushes off concerns over global recession. There will be some buzz in the steel stocks on report that domestic steel output fell despite rise in consumption. Domestic steel consumption grew by 4.3% during the April-February period of the current financial year, while production of domestic industry fell by 1.9%. Mining and mineral stocks too may see some action, as the Cabinet is likely to consider mines ministry's proposal to allow auction of 100 mineral blocks for exploration as early as this week.



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Power Grid






  • Bharat Heavy Electricals has achieved a significant milestone by successfully commissioning its first 700 MW supercritical thermal unit at Bellary Thermal Power Project in Karnataka.
  • Tata Power has inaugurated its third Tata Power Skill Development Institute, a Centre for Excellence for Power Plant Skills, in Maithon, Jharkhand.
  • Yes Bank, India's fifth largest private sector bank, has launched its first Currency Chest and Small Coin Depot in Mumbai on March 03, 2016.
  • Tata Steel, in association with Tata Digital Health, has launched an initiative to digitise and transform healthcare at Tata Main Hospital in Jamshedpur.
  • Asian Paints has restarted operations at the company's paint Plant situated at Rohtak in the state of Haryana.
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