Indian equity benchmarks traded
on positive note for whole day and ended with gains of over half percent on
Friday, tracking positive cues from global markets. Equity indices made a
gap-up opening, as traders got encouragement with Giridhar Aramane, Secretary
in the Ministry of Road Transport and Highways' statement that the government
is working on a comprehensive financial package not only for MSMEs but for all
sectors of the economy. Sentiments also remained up-beat with chief economic
adviser (CEA) Krishnamurthy Subramanian expressing optimism that the Indian
economy will stage a better recovery once the Covid-19 outbreak subsides and it
will be a V-shaped recovery. Traders also took note of report that the Central
Board of Direct taxes (CBDT) has amended a rule to settle disputes
expeditiously under mutual agreement procedure (MAP), which is a dispute
resolution process under tax treaties. However, indices gave up most of their
early gains in final hour of trade to come off their intraday high points, as
market-men got anxious with Moody's Investors Service projecting India's growth
at zero percent for the current fiscal (FY21) and said the negative outlook on
sovereign rating reflects increasing risks that GDP growth will remain
significantly lower than in the past. It also noted that the outlook also
partly shows weaker policy effectiveness to address economic and institutional
issues. But, trade remained in green as some optimism remained among traders
with Finance Minister Nirmala Sitharaman stating that public sector banks
(PSBs) sanctioned loans worth Rs 5.66 lakh crore for more than 41.81 lakh
accounts, during March-April 2020. She noted that these borrowers hail from a
variety of sectors like micro, small and medium enterprises (MSMEs), retail,
agriculture and corporate, waiting for disbursal soon after the lockdown is
lifted. The finance minister said that the economy is poised to recover.
Finally, the BSE Sensex gained 199.32 points or 0.63% to 31,642.70, while the
CNX Nifty was up by 52.45 points or 0.57% to 9,251.50.
The US markets ended higher on
Friday, extending their previous session's gains, despite the Labor Department
released a report showing a record nosedive in US employment in the month of
April. The report said non-farm employment plummeted by 20.5 million jobs in
April after tumbling by a revised 870,000 jobs in March. The steep drop in
employment was not as bad as feared, however, as Street had expected employment
to plunge by 22.0 million jobs compared to the loss of 701,000 jobs originally
reported for the previous month. Traders seem to believe the dismal jobs
picture was already priced into the markets during the sell-off seen in late
February and March. Many are now looking ahead to an anticipated economic
rebound as states begin to reopen following their coronavirus-induced
lockdowns. Besides, market sentiments were helped by report that the US Trade
Negotiator Robert Lighthizer and his Chinese counterpart Liu He and US Treasury
Secretary Steven Mnuchin held a phone call, which resulted in the two largest
economies in the world agreeing to strengthen macroeconomic and public-health
cooperation. The report signifies a softening of hostilities between Washington
and Beijing after President Donald Trump accused China of mishandling the
coronavirus outbreak and threatened to quash a bilateral trade pact between the
nations.
Crude oil futures ended higher
with gains of over five percent on Friday amid a slight improvement in demand
for petroleum products. With several countries easing lockdown restrictions and
reopening some crucial businesses, it is widely expected that the demand for
energy will gradually improve in the coming weeks. Traders were also betting on
output cuts by major oil producers this month. Another factor contributing to
the rise in oil prices was a report from Baker Hughes showing another drop in
US rig count. Crude oil futures for June gained $1.19 or 5.1 percent to settle
at $24.74 a barrel on the New York Mercantile Exchange. July Brent crude rose
$1.51 or 5.1 percent to settle at $30.97 a barrel on London's Intercontinental
Exchange.
Indian rupee ended higher against
dollar on Friday, tracking positive trend in domestic equities and weakening
American currency in the overseas market. Sentiments remained positive as chief
economic adviser (CEA) Krishnamurthy Subramanian expressed optimism that the
Indian economy will stage a better recovery once the Covid-19 outbreak subsides
and it will be a V-shaped recovery. Traders also found some solace with
Giridhar Aramane, Secretary in the Ministry of Road Transport and Highways'
statement that the government is working on a comprehensive financial package
not only for MSMEs but for all sectors of the economy. However, gains remain
capped as investors' sentiment remained fragile amid concerns over the impact
of COVID-19 pandemic on the domestic as well as global economy. On the global
front, pound gained ground against both the dollar and the euro following the
Bank of England's decision to keep interest rates and asset purchases
unchanged. Finally, the rupee ended at 75.54, 18 paise stronger from its
previous close of 75.72 on Wednesday.
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 26392.08 crore against gross
selling of Rs 9269.37 crore, while in the debt segment, the gross purchase was
of Rs 807.31 crore with gross sales of Rs 996.41 crore. Besides, in the hybrid segment,
the gross buying was of Rs 5.35 crore against gross selling of Rs 7.68 crore.
The US markets ended higher on
Friday even though the Labor Department released a report showing a record
nosedive in US employment in the month of April. Asian markets are trading in
green on Monday as investors looked ahead to more countries restarting their
economies. Indian markets ended higher on Friday amid positive global cues as
trade-war fears receded and more countries announced plans to ease their
lockdown restrictions. Today, the start of new week is likely to be gap-up
following firm global cues and ahead of macro-economic data like IIP, CPI and
WPI to be out later in the week. Traders will be eyeing Prime Minister Narendra
Modi's another meeting with chief ministers (CMs) of all states on May 11. He
is expected to discuss the plan for exit from the ongoing nationwide lockdown
to prevent the spread of coronavirus. Besides, Finance minister Nirmala
Sitharaman will hold a meeting with top executives of state-run banks on May 11
to review a raft of issues, including credit flow to key sectors like MSMEs and
NBFCs, rate transmission to borrowers and progress under the targeted long-term
repo operations (TLTRO). Some support will come with report that the government
is working on several initiatives, such as preparation of huge land pools, to
attract potential investors to India amid the coronavirus-triggered turbulence.
Meanwhile, the government has raised the estimated gross market borrowing for
FY 2020-21 to Rs 12 lakh crore from Rs 7.80 lakh crore as per Budget Estimates
(BE) 2020-21. Though, there may be some cautiousness with the Worldometer data
showing that the number of coronavirus cases in India jumped to 67,161 and the
death toll rose to 2,212 by May 11. Traders may be concerned with a private
brokerage firm cutting steeply its FY2021 GDP forecast for India from -0.4% to
-5.2%. The firm added that the government's decision to borrow Rs 12 lakh crore
(revised higher from Rs 7.8 lakh crore) means that the fiscal deficit, by the
official math, can be pegged at 5.5-6% of GDP. Meanwhile, Indian Railways will
resume booking passenger train tickets on the IRCTC website from May 11. There
will be some buzz in the banking stocks with the Reserve Bank of India's (RBI)
data showing that bank credit and deposits grew by 6.74% and 9.82% to Rs 102.69
lakh crore and Rs 137.11 lakh crore in the fortnight ended April 24. There will
be some reaction in pharma stocks the Pharmaceutical Exports Promotion Council
of India (Pharmexcil) report that the drop in exports in February and March has
dragged pharmaceutical export growth down to a single digit of 7.57% to $20.58
billion in the year 2019-20.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9,251.50
|
9,198.92
|
9,343.37
|
BSE Sensex
|
31,642.70
|
31,464.30
|
31,954.81
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State Bank of India
|
559.36
|
166.65
|
163.90
|
171.60
|
ICICI Bank
|
429.71
|
337.70
|
330.10
|
348.90
|
Reliance Industries
|
385.22
|
1,561.80
|
1,539.30
|
1,582.10
|
Tata Motors
|
353.63
|
81.05
|
79.42
|
83.82
|
Axis Bank
|
335.07
|
382.05
|
371.32
|
401.12
|
M&M has launched an integrated online platform that will provide end-to-end sales experience for prospective buyers amid the coronavirus pandemic.
Dr. Reddy's Laboratories has received the EIR from the USFDA, for its API manufacturing plant at Srikakulam, Andhra Pradesh.
Maruti Suzuki India has developed Wellness Mitra App, which is acting as the guardian angel to assist employees of the company over the past two weeks as coronavirus pandemic rages on.
Vista Equity Partners is planning to invest Rs 11,367 crore into Reliance Industries' wholly-owned subsidiary -- Jio Platform.