Indian equity bourses witnessed
volatility on Monday, with Sensex and Nifty closing lower by 71.53 and 24.45
points, respectively. The start of day was cautious, amid Finance Ministry's
report showing that government's total liabilities reached Rs 84.68 lakh crore
at the end of March 2019, up 1.5 per cent over the preceding quarter. The total
liabilities stood at Rs 83.40 lakh crore at end-December 2018. The street were
also cautious, as the Federation of Indian Chamber of Commerce and Industry
(FICCI) in its quarterly survey found that sentiment in the manufacturing
sector remains subdued as the proportion of respondents reporting higher output
growth during Q1 (April-June) of 2019-20 has dropped to 41 percent as against
54 percent in January-March (Q4) of
2018-19. Key indices staged recovery during noon deals but failed to sustain it
and ended the session in red terrain, on the back of mix cues from global
markets. Market participants overlooked a report stating that investments in
the Indian capital market through participatory notes increased by nearly Rs
1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 percent over the
previous month. The street also paid no heed towards Niti Aayog's statement
that expert panel for macroeconomics and employment came out with suggestions
to achieve $5 trillion economy target during an interaction with Prime Minister
Narendra Modi. Improvement of governance in PSU banks, enhancing growth rate of
exports & employment generation were some of the key areas identified.
Finally, the BSE Sensex lost 71.53 points or 0.18% to 39,122.96, while the CNX
Nifty was down by 24.45 points or 0.21% to 11,699.65.
The US markets ended mostly lower
on Monday as traders seemed reluctant to make more significant moved ahead of
the highly anticipated G20 summit in Osaka, Japan, later this week. US
President Donald Trump and Chinese President Xi Jinping are scheduled to meet
during the summit in an effort to kick start stalled trade negotiations.
Further, rising tensions between the US and Iran also kept traders on the
sidelines, with Trump announcing new sanctions on Iran after an unmanned US
surveillance drone was recently shot down by Iranian forces. Trump said that
the US does not seek conflict with Iran but said his administration will
continue to increase pressure on Tehran until the regime abandons its dangerous
activities. The executive order signed by the president includes sanctions on
Iran's Supreme Leader, Ayatollah Ali Khamenei, as well as the Supreme Leader's
Office. Besides, reports on new home sales, consumer confidence, durable goods
orders, and personal income and spending may also attract attention in the
coming days. Traders are likely to analyze the data with an eye out for any
clues about the timing of an interest rate cut by the Federal Reserve. The Fed
signaled last week that the next move in interest rates would likely be lower
but did not specifically outline the time frame for the reduction. Nasdaq
declined 26.01 points or 0.32 percent to 8005.70 and S&P 500 lost 5.11
points or 0.17 percent to 2945.35, while Dow Jones Industrial Average was up
8.41 points or 0.03 percent to 26727.54.
Crude oil futures ended higher on
Monday as the US announced new sanctions on Iran. President Donald Trump signed
an executive order imposing financial sanctions on Iranian leaders. New
sanctions will likely have limited impact, particularly on the oil sector, as
current US sanctions have essentially eliminated Iranian crude from the global
marketplace. Meanwhile, the Organization of the Petroleum Exporting Countries
(OPEC) and its allies will hold meetings on July 1-2. The session was
originally scheduled for June 25-26. The impetus behind delaying the meeting is
a wait-and-see approach. OPEC officials want to see the outcome of the G-20
summit, and they hope Trump and China President Xi at least make some progress
on a trade deal. Benchmark crude oil futures for July surged 47 cents or 0.8
percent to settle at $57.90 a barrel on the New York Mercantile Exchange.
However, August Brent declined 34 cents or 0.5 percent to settle at $64.86 a
barrel on London's Intercontinental Exchange.
Indian rupee ended higher against the American currency on
Monday, as fresh sale of the US currency by exporters paced up. Local currency
got support with Niti Aayog's statement that expert panel for macroeconomics
and employment came out with suggestions to achieve $5 trillion economy target
during an interaction with Prime Minister Narendra Modi. Besides, the dollar
losing muscle against other currencies overseas helped the domestic currency
rebound. However, rising crude oil prices due to US-Iran tensions along with
lackluster trade in the equity markets restricted the further up move. On the
global front, euro rose to a three-month high against the dollar on Monday, as
bearish bets on the US currency remained solid on prospects of a near-term interest
rate cut by the Federal Reserve. Finally, the rupee ended at 69.35, 23 paise
stronger from its previous close of 69.58 on Friday.
The
FIIs as per Monday'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
11011.32 crore against gross selling of Rs 12013.15 crore, while in the debt
segment, the gross purchase was of Rs 1822.93 crore with gross sales of Rs
1260.64 crore. Besides, in the hybrid segment, the gross buying was of Rs 5.38
crore against gross selling of Rs 5.43 crore.
The US markets ended mostly lower
on Monday as a dearth of economic data kept trading activity relatively
subdued. Asian markets are trading mostly in red on Tuesday as investors looked
toward a meeting between US President Donald Trump and Chinese President Xi
Jinping set to happen later in the week. Indian markets settled in red
territory for second straight session on Monday, with marginal cut, amid weak
global cues and rise in oil prices. Today, the markets are likely to make a
weak start following lackluster trade in Asian peers. There will be some
cautiousness with a report that unaccounted wealth outside the country held by
Indians was estimated in the range of $216.48 billion to $490 billion over
various periods between 1980 and 2010. As per the report, the sectors where
unaccounted income is found to be the highest included real estate, mining,
pharmaceuticals, pan masala, gutkha, tobacco, bullion, commodity, film, and
education. However, some support may come later in the day with the India
Meteorological Department's (IMD) statement that India's annual monsoon rains
have covered nearly half of the country and conditions are favourable for
further advancement into the central and western parts this week. It added that
the monsoon's progress will help farmers to accelerate sowing of summer-sown
crops, which has been lagging due to a delay in the arrival of monsoon rains.
Traders may take note of Union Minister for Micro, Small and Medium Enterprises
Nitin Gadkari's statement that Micro, Small and Medium Enterprises MSMEs
generated 5.87 lakh employment in 2017-18. Meanwhile, capital markets regulator
SEBI plans to tighten its norms for encumbrance disclosure by promoters of
listed firms, amid growing number of cases of shares seeing a free fall due to
post-default distress sale of pledged securities by lenders. There will be some
reaction in telecom stocks with Crisil's report that greater spread of optical
fibre is necessary before 5G becomes a reality and the already stretched telcos
will have to invest at least Rs 1 lakh crore in laying fibre networks in the
next three years.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,699.65
|
11,661.90
|
11,745.70
|
BSE
Sensex
|
39,122.96
|
38,996.43
|
39,274.75
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
796.95
|
111.95
|
109.20
|
114.35
|
Indiabulls Housing
Finance
|
186.52
|
619.10
|
601.40
|
633.40
|
SBIN
|
179.20
|
353.20
|
350.32
|
355.42
|
Tata Motors
|
131.85
|
159.30
|
156.93
|
160.93
|
Hindalco
Industries
|
104.65
|
198.20
|
195.38
|
202.13
|
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Infosys has entered into a long term strategic partnership with Toyota Material Handling Europe.
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