A session after displaying a
pitiful performance, Indian equity indices have managed to pull through a
brilliant performance by gaining over half percent on Tuesday, thanks to the
hefty buying by funds and retail investors ahead of March quarter earnings,
which begin later this week. Sentiments got boost after Union Finance Minister
Arun Jaitley said that some new measures for NPAs are being contemplated and
the government is making all conscious efforts to tackle bad loans. Besides,
optimistic buying in blue-chip stocks ahead of industrial production (IIP) data
for February and retail inflation for March tomorrow also kept markets on
course. Some support also came with the report that India's oil consumption
fell for the third straight month in March as the demand growth in diesel,
petrol and other products came to a crawl. The oil demand fell by 0.65% in
March to 17,358 thousand metric tonnes (TMT). However, gains remained capped
with the report that India's inflation is seen climbing to within touching
distance of the central bank's 4% medium-term target in March, driven by higher
food costs. According to the report, having sunk to its lowest level for at
least five years in January, consumer price inflation is expected to have risen
to 3.98% last month from February's 3.65%. Furthermore, leading exporters' body
EEPC India has raised a red flag against the debilitating impact of sharp rise
in rupee against dollar in the last three months on exports, which may slip off
from the recovery path, if the situation persists further. Since the first week
of January, rupee has gained by close to six per cent, eroding significantly
the exporters' margins and more importantly the competitive edge against
India's trade rivals in the international markets. Meanwhile, shares of private
electricity generation companies, Adani Power and Tata Power Company, came
under sharp selling pressure on reports that the Supreme Court has disallowed
compensatory tariff to both the companies. Finally, the BSE Sensex surged
212.61 points or 0.72% to 29788.35, while the CNX Nifty was up by 55.55 points
or 0.61% to 9,237.00.
The US markets closed lower on
Tuesday, as investors remained cautious over assets perceived as risky, such as
equities, on rising geopolitical tensions. Tuesday's moves come as investors
focus on the latest geopolitical developments, as the US has taken a hard line
on Syria at a G-7 meeting and North Korea has warned that it is ready for war
should US Navy ships advance to the Korean Peninsula. On the economy front,
small-business owner optimism declined in March as sales expectations and
earnings came back to earth after a post-election surge. The National
Federation of Independent Business said its monthly sentiment gauge fell 0.6
point to 104.7. The post-election surge was the biggest in the four decades
NFIB has been conducting its survey. The gauge rose again in January but then
receded in February. Job openings rose and hires dipped in February as the
labor market continued to grind slowly higher. The Dow Jones Industrial Average
lost 6.72 points or 0.03 percent to 20,651.30, the Nasdaq was down 14.16 points
or 0.24 percent to 5,866.77, while S&P 500 dropped 3.38 points or 0.14
percent to 2,353.78.
Crude oil futures moved further
high on Tuesday, with Nymex crude reaching its highest closing level in a month.
Prices also got support with reports that Saudi Arabia supported the idea of
extending OPEC-led cuts by an additional six months to the end of the year. Saudi
Arabia informed OPEC officials it favoured an extension of the six-month
OPEC-led deal to cut supply, which began in January this year, for an
additional six months, when the group meets in May. Benchmark crude oil futures
for May delivery gained $0.32 to $53.40 on the New York Mercantile Exchange. In
London, Brent crude for May delivery ended higher by $0.19 at $55.93 on the
ICE.
Indian
rupee appreciated against dollar on Tuesday, on increased selling of the
American currency amid continued foreign inflows. Local currency got some
support with the report that India's oil consumption fell for the third
straight month in March as the demand growth in diesel, petrol and other
products came to a crawl. The oil demand fell by 0.65% in March to 17,358
thousand metric tonnes (TMT). Also, a strong domestic stock market coupled with
dollar's weakness against the basket of other major currencies supported the
uptrend. On the global front, dollar fell against yen on Tuesday, as concerns
over tensions with North Korea and Syria weighed on U.S. Treasury yields and
offset expectations of U.S. interest rate hikes. Finally, the rupee ended at
64.50, 6 paise stronger from its previous close of 64.56 on Monday.
The
FIIs as per Tuesday's data were net sellers in equity segment, while they were
net buyers in debt segment. In equity segment, the gross buying was of Rs
3773.59 crore against gross selling of Rs 4409.38 crore, while in the debt
segment, the gross purchase was of Rs 1473.48 crore with gross sales of Rs
786.55 crore.
The US markets closed marginally
in red in the last session, though the major averages recovered from the early
lows and were well off their worst levels of the day, but the mood reflected
geopolitical concerns on the heels of President Donald Trump's decision to
launch a missile strike at an airbase in Syria. The Asian markets have made a
mixed start and many of the indices are in red, led by the Japanese market
which is down by over a percent after the yen jumped to the highest since
November, as investors avoided riskier assets amid lingering geopolitical
concerns. The Indian markets outperformed the global peers and surged in last
session close to a percent, despite geo-political worries. Today, the start is
likely to be cautious and some consolidation can appear tailing the weak global
cues. Marketmen will be eyeing the macro economic data of industrial production
and consumer price inflation to be released after the market hours. Traders
will however be getting some support with Niti Aayog vice-chairman Arvind
Panagariya's statement that he Goods and Services Tax (GST) regime should be
implemented as scheduled despite all challenges as progress will take place
only after we move ahead in this regard. Meanwhile, GST-Network , the firm
which is building the IT backbone of the Goods and Services Tax regime has assured
stakeholders that all their data will be stored in an encrypted form and only
the taxpayer and the assessing officer will have access to the information. The export oriented stocks will remain under
pressure with rise in rupee; EEPC India too has expressed apprehensions
regarding the debilitating impact that the sharp rise in rupee against dollar
can have on exports.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9237.00
|
9192.33
|
9262.18
|
BSE Sensex
|
29788.35
|
29637.78
|
29871.71
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Tata Power
|
322.25
|
85.45
|
81.02
|
90.02
|
NTPC
|
145.12
|
167.00
|
164.23
|
168.83
|
ICICI Bank
|
124.86
|
283.65
|
278.85
|
286.35
|
SBI
|
116.82
|
294.50
|
290.48
|
296.83
|
ITC
|
109.35
|
282.05
|
275.03
|
285.83
|
Tata Motors' subsidiary- TAL Manufacturing Solutions has launched TAL Brabo Robots in two variants and is priced between Rs 5 and 7 lakh.
Tata Power's Industrial Energy, Kalinganagar plant, Orissa has taken a target to offset carbon generation of FY17 with an average of 40 tonnes (approximately) of CO2 per month by distributing LEDs in nearby villages under its CR programme.
HDFC Bank has proposed to raise funds by issuing Perpetual Debt Instruments, Tier II Capital Bonds and Senior Long Term Infrastructure Bonds up to a total amount of Rs 50,000 crore in the period of next twelve months through private placement mode.
ONGC has set a new record of drilling over 500 wells in 2016-17 at an expenditure of Rs 15,747 crore as the major state-owned explorer steps up efforts to boost domestic output.