Indian benchmark indices ended
the session on a negative note, dragged by fall in midcaps as well as
escalating cross border tensions. Pakistani fighter jets flew near the Siachen
Glacier today, according to a media report, but Indian Air Force sources said
there was no violation of India's air space. Also, Pakistan's Air Force chief
warned that his forces will respond to any aggression by the enemy in a manner
that their future generations will also remember it. The optimism in domestic
markets petered out completely by the end of trade and the benchmarks even
drifted in to the negative territory as investors turned cautious ahead of the
F&O expiry of May series due tomorrow. Market participants also awaited the
minutes of US Federal Reserve's May policy meeting due later in the day for
clues about its next interest rate hike. Sentiments remained dismal on the
report that weak investment activity, as reflected in the slow output growth in
capital goods and infrastructure, is likely to depress Indian gross value added
(GVA) growth to around 6.6 per cent in the fourth quarter ended March. The report also indicated that the transition
to Goods and Services Tax (GST) is also likely to create some disruption and
impact the short-term sales volume across businesses. However, losses remained
capped with Prime Minister Narendra Modi's statement that our aim is that India
must be an engine of growth as well as an example in climate friendly
development in the years to come. Finally, the BSE Sensex lost 63.61points or
0.21% to 30301.64, while the CNX Nifty was down by 25.60 points or 0.27% to
9,360.55.
The US markets closed higher on Wednesday,
as minutes of the Federal Reserve's latest policy meeting showed broad
agreement on plans to begin shrinking the central bank's balance sheet and also
pointed to a likely rate increase next month, as widely expected. The minutes
of the early May meeting showed that members were in agreement on a general
approach to unwinding the massive balance sheet built up over the course of the
asset-buying spree that was at the center of the Fed's quantitative easing
strategy. The minutes also showed most Fed officials agreed it would soon be
time to raise rates again. Federal Reserve officials were in broad agreement at
their May 2-3 meeting on a general approach to shrinking the bank's massive
balance sheet. On the economy front, sales of previously-owned homes sputtered
in April after a supercharged first quarter, as lean inventory continued to
constrain demand. Existing-home sales ran at a seasonally adjusted annual rate
of 5.57 million. That was a 2.3% decline from March's selling pace, which was
revised down a tick but still stood at a 10-year high, though 1.6% higher
compared to a year ago in April. The Dow Jones Industrial Average gained 74.51
points or 0.36 percent to 21,012.42, Nasdaq added 24.31 points or 0.40 percent
to 6,163.02, while S&P 500 edged higher by 5.97 points or 0.25 percent to
2,404.39.
Crude oil futures snapped their
winning streak on Wednesday, despite word that OPEC will agree to extend its
supply quota plan. Traders also overlooked the bullish report from the Energy Information
Administration (EIA), showing U.S. crude inventories fell more than expected in
the previous week. EIA said that crude oil inventories fell by 4.43 million
barrels. Gasoline inventories dropped by only 0.485 million, while distillate
stockpiles fell by 0.485 million barrels. Meanwhile, Kuwait, Iraq, Oman and
Venezuela supported the Saudi-Russia agreement that production curbs needed to
be extended for a period of nine-months until March 2018, to reduce global
supply to the five-year average. Benchmark crude oil futures for June delivery ended
lower by $0.11 or 0.2 percent to $51.36 on the New York Mercantile Exchange. In
London, Brent crude for July delivery ended down by $ 0.19 to $53.95 on the
ICE.
Indian
rupee ended stronger against dollar on Wednesday, due to selling of greenback
by banks and exporters. Sentiments remained positive with Prime Minister
Narendra Modi's statement that India has improved upon all the macro-economic
indicators over the last three years mainly due to universal banking &
universal biometric identification and noted that the fiscal deficit, balance
of payments deficit and inflation in the country has reduced, while GDP growth
rate, foreign exchange reserves and public capital investments have increased.
However, dollar strengthens against other major currencies overseas along with
some losses in the domestic equity market weighted on the rupee sentiments. On
the global front, dollar held firm against its major rivals, ahead of the
release of Federal Reserve meeting minutes that are largely expected to back
expectations for another interest-rate hike come June. Finally, the rupee ended at 64.73, 16 paise
stronger from its previous close of 64.89 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 5782.50 crore against gross
selling of Rs 6148.58 crore, while in the debt segment, the gross purchase was
of Rs 2182.63 crore with gross sales of Rs 533.22 crore.
The US markets extended their
gains in last session and the S&P 500 reached a new record closing high. The
gains came following the release of the minutes of the Federal Reserve's latest
monetary policy meeting, which noted that growth in economic activity had
slowed, although the Fed members agreed that the slower growth during the first
quarter was likely to be transitory. The Asian markets have made mostly a green
start supported by the gains in oil prices which reached a one month high ahead
of the key meeting from crude producing countries. The Japanese market was up
by over half a percent as yen declined. The Indian markets ended lower in last
session, reversing all their early gains on sluggish global cues, today the
start of the F&O series expiry session is likely to be in green on positive
global cues. Traders will also be getting some support with government in its
bid to support the initiative ‘Make in India' and easing the flow of foreign
capital into the country, dismantling the Foreign Investment Promotion Board
(FIPB), which currently vets FDI proposals requiring the government approval.
FIPB will be replaced by a new mechanism under which the proposals will be
approved by the ministries concerned as per the standard operating procedure
approved by the Cabinet. There will be some cautiousness too, with industry
body Assocham stating that implementing GST from July 1 will be a challenge for
the industry and the government should consider relaxing penal provisions for a
couple of quarters to help it comply with the new tax regime. There will be
some buzz in the sugar stocks, as the Cabinet Committee on Economic Affairs
(CCEA) has decided to increase fair and remunerative price (FRP) of sugarcane
by Rs 25 per quintal to Rs 255 for 2017-18 season beginning October, though the
FRP for the ongoing 2016-17 season has been kept unchanged at Rs 230 per quintal.
There will be lots of earnings announcements to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9360.55
|
9324.17
|
9414.42
|
BSE Sensex
|
30301.64
|
30188.11
|
30474.66
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Tata Motors
|
273.71
|
469.55
|
460.65
|
475.90
|
ICICI Bank
|
186.42
|
306.70
|
303.45
|
309.80
|
SBI
|
164.36
|
283.15
|
279.72
|
288.52
|
Bank of Baroda
|
119.78
|
175.75
|
172.77
|
180.77
|
Hindalco
|
111.31
|
187.05
|
183.55
|
192.10
|
Bank of Baroda has entered into a Memorandum of Understanding with IFFCO to roll out their first set of co-branded debit cards for farmers.
Tata Motors has reduced its managerial workforce by up to 1,500 people domestically as part of an organisational restructuring exercise.
Dr. Reddy's Laboratories has joined hands with the Department of Science and Technology and University of Hyderabad to initiate a project on discovery and development of anti-psoriatic drugs.
- Lupin has reported a fall of 49.16% in its consolidated net profit at Rs 380.21 crore for the quarter ended March 31, 2017 as compared to Rs 747.88 crore for the same quarter in the previous year.