Wednesday turned out to be a
fabulous day of trade for Indian equity benchmarks, with frontline gauges
recapturing their crucial 31,500 (Sensex) and 9,850 (Nifty) levels. Sentiments
remained up-beat since morning, as markets made a gap-up opening with a blog on
Asian Development Bank's website, stating that the Goods and Services Tax (GST)
in India will benefit the lower and lower-middle income class as it is likely
to reduce the tax rate on goods. It further stated that in general, GST is
likely to reduce the tax rate on goods as compared to previously, while tax
rates on services are expected to increase. Afterwards, markets traded with
confidence in a tight band for most part of the session with traders taking
encouragement with the Financial Stability & Development Council's (FSDC)
statement that India has macro-economic stability today on the back of
improvement in its macro-economic fundamentals and structural reforms with the
launch of the GST. The Council, comprising regulators, took note of the overall
stability that has been achieved on the back of improvements in macro-economic
fundamentals, structural reforms with the launch of the GST, action being taken
to address the twin balance sheet challenge and financial market confidence.
Markets extended gains in last leg of trade which mainly helped markets to end
near intraday high levels, as some support came with the report that the loan
portfolio of micro-finance institutions (MFIs) increased by 26% to Rs 35,045
crore in the first quarter ended June 2017. Some support also came with the
launch of the Mentor India Campaign, a strategic nation building initiative to
engage leaders who can nurture and guide students at more than 900 Atal
Tinkering Labs. Finally, the BSE Sensex
surged 276.16 points or 0.88% to 31,568.01, while the CNX Nifty was up by 86.95
points or 0.89% to 9,852.50.
The US markets closed lower on
Wednesday, with the main indexes undoing some of the solid gains from the
previous session as investors turned their attention to the Jackson Hole, Wyo.,
meeting of global central bankers and digested comments from President Donald
Trump's Tuesday night rally in Phoenix. Wednesday's modest bout of selling
could be partly due to controversial comments from Trump, who late Tuesday said
that he's ready to shut down the government to win funding for a border wall
with Mexico. Trump, during a rally with his supporters in Phoenix, also warned
of the possible termination of the North American Free Trade Agreement. On the
economy front, new-home sales tumbled in July, a discouraging development for a
market starved for supply. Sales of newly-constructed homes were at a seasonally
adjusted annual rate of 571,000. That was 9.4% lower than an upwardly-adjusted
June rate of 630,000, and 8.9% below the year-ago level. The median sales price
in July was $313,700, 6.3% higher than a year ago. At the current pace of
sales, it would take 5.7 months to exhaust all supply, among the highest ratios
of the past few years. The Dow Jones Industrial Average lost 87.8 points or
0.40 percent to 21,812.09, the Nasdaq dropped 19.07 points or 0.30 percent to
6,278.41, while the S&P 500 edged lower by 8.47 points or 0.35 percent to
2,444.04.
Crude oil futures extended their
gains on Wednesday after the government report said crude oil prices dropped
for the eighth consecutive week. Data showed US supplies of crude oil fell for
an eighth-straight week while fears of falling demand for gasoline eased,
following a bigger-than-expected decline in gasoline inventories. Energy
Information Administration (EIA) showed US crude-oil inventories were down 3.3
million barrels last week. Gasoline inventories, fell by roughly 1.2m barrels, while
distillate stockpiles rose by 28,000 barrels. Benchmark crude oil futures for October
delivery ended up by $0.67 or 1.2 percent to $48.41 on the New York Mercantile
Exchange. In London, Brent crude for October delivery ended higher by 1.39
percent at $52.59 a barrel on the ICE.
Indian rupee ended marginally
weaker against the American currency on Wednesday, due to fresh dollar demand
from banks and importers amid foreign fund outflows. Investors remained
concerned with rating agency ICRA's latest report which has estimated that
India's gross value added (GVA) growth is likely to slow down to 6.3% in
April-June quarter (Q1) of fiscal year 2017-18 from 7.6% in the same period of
pervious year. However, dollar's weakness against other currencies overseas and
strong domestic equity market restricted the rupee's losses. On the global
front, dollar edged down against the yen on Wednesday after US President Donald
Trump raised the spectre of a government shutdown to fulfil a campaign pledge,
but overall moves among major currencies were limited ahead of this week's
Jackson Hole global central bankers' conference. Finally, the rupee ended at
64.11, 1 paise weaker from its previous close of 64.10 on Tuesday.
The FIIs as per Wednesday'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 3474.55 crore against gross
selling of Rs 4202.18 crore, while in the debt segment, the gross purchase was
of Rs 2215.10 crore with gross sales of Rs 1086.46 crore.
The US markets gave up some
ground in the last session after surging in the prefious one. Though, the
selling pressure remained subdued, limiting the downside for the major
averages. Traders reacted to comments made by President Donald Trump at a rally
in Phoenix, Arizona that he would build the wall on the border with Mexico even
if it meant shutting down the government. The Asian markets have made a mixed start,
with some indices trading in red on concerns about the Trump administration's
ability to enact its fiscal agenda. The Japanese market too was in red despite
the yen decline. The Indian markets showed a smart surge in the final hours of
last session trade and the major benchmarks posted gains near to a percent by
the end. Today, the start is likely to be in green despite the mixed global
cues, though there could be some consolidation too ahead of the long weekend.
Traders will be eyeing the conference of a central bankers at Jackson Hole,
Wyoming, beginning today, where US Federal Reserve Chair Janet Yellen and
European Central Bank President Mario Draghi are both due to speak. The PSU
banking stocks will be in focus after the Union Cabinet on Wednesday gave
in-principle approval to delegate to a select panel of ministers the task of
overseeing their mergers. Meanwhile, Insolvency & Bankruptcy Board of India
(IBBI) chairperson has said that resolution of indebtedness of a firm will be
the top priority of all constituents of the insolvency and bankruptcy mechanism
in the interest of the stakeholders and it will think about liquidation only if
it finds that the resolution is hard to come by. An RBI report has stated that
India Inc's overseas direct investment fell over 47 per cent to $ 1.77 billion
during July 2017. Indian companies had invested $ 3.35 billion in the same
month of last year. There will be some buzz in the media stocks, as the Finance
Ministry has said that the rate of Goods and Services Tax (GST) applicable on
selling of advertisement space in print media would depend on the terms of the
contract between the newspaper, advertisement agency and the client.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9852.50
|
9806.87
|
9878.02
|
BSE Sensex
|
31568.01
|
31433.71
|
31647.85
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Infosys
|
306.42
|
892.80
|
876.57
|
906.37
|
Bank of Baroda
|
188.93
|
140.95
|
138.85
|
142.65
|
SBI
|
113.18
|
279.00
|
275.57
|
281.07
|
ICICI Bank
|
91.43
|
298.60
|
296.20
|
300.10
|
ITC
|
87.48
|
282.55
|
280.90
|
284.90
|
Bosch has commissioned a 4 MW solar project for the New Mangalore Port Trust.
Bajaj Auto has launched electric start variant of its entry level motorcycle, CT100 at an introductory price of Rs 41,997.
Tata Power's renewable business capacity crossed 2,000 MW and non-fossil fuel portfolio stood at 3,144 MW, in Q1 FY18, a 92% increase from the corresponding quarter last year.
Lupin has launched its Quetiapine Fumarate Extended-Release Tablets, 50 mg, 150 mg, 200 mg, 300 mg and 400 mg having received an approval from the USFDA earlier.