Daily Newsletter
NSE Intra-day chart (27 February 2019)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Market Commentary 28 February 2019
Benchmarks to make a cautious start amid weakness in global markets


Key Indian equity benchmarks gave up their gains on Wednesday to end the trading session in negative territory. The start of the day was jubilant, taking support with the Reserve Bank of India (RBI) stating that it would infuse Rs 12,500 crore into the system through open market operations. The decision on OMO is based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward. Traders took encouragement with a report that consumer market is expected to grow at 12 percent annually over the next decade and touch Rs 335 lakh crore. The consumer market was around Rs 110 lakh crore in 2018, clipping past 13 percent annually in the past decade when it stood at Rs 31 lakh crore in 2008. Some comfort also came with Corporate Affairs Secretary Injeti Srinivas' statement that the government would soon take effective steps to discourage people from making frivolous bids under the Insolvency and Bankruptcy Code (IBC). He noted that the IBC mainly seeks to address the issue of stressed assets in a time-bound manner. However, the indices turned negative in afternoon deals to close lower, affected by the Controller General of Accounts' (CGA) latest data showing that the central government's fiscal deficit has widened and touched 121.5% of the full-year revised target of Rs 6.34 lakh crore at the end of January. The fiscal deficit, or the gap between the government's expenditure and revenue, stood at Rs 7.70 lakh crore during April-January of the current financial year ending March. Sentiments also got worsened after the government detected Rs 20,000 crore worth GST evasion so far this fiscal and will take more steps to check frauds and increase compliance. Adding worries among the traders, the Vice President of India, M. Venkaiah Naidu expressed concern over the recent incidents of indiscretion, mismanagement and greed that ruined many business organisations and individual reputation as he stressed up on the need to incorporate business ethics and values as an important and integral element of management education. Finally, the BSE Sensex lost 68.28 points or 0.19% to 35,905.43, while the CNX Nifty was down by 28.65 points or 0.26% to 10,806.65.


The US markets bounced off intraday lows but still ended mostly lower on Wednesday as comments from US Trade Representative Robert Lighthizer partly offset recent optimism about the US-China trade talks. Lighthizer, who is described as hawkish on trade, told members of the House Ways and Means Committee that China needs to go beyond pledging to buy more US goods to reach to a long-term trade agreement. Lighthizer said we can compete with anyone in the world, but we must have rule, enforced rules, that make sure market outcomes and not state capitalism and technology theft determine winners. The reaction to Lighthizer's remarks reflected the lingering uncertainty about a potential US-China trade deal even after President Donald Trump decided to postpone an increase in tariffs on Chinese imports. On the economic front, a government shutdown-delayed report released by the Commerce Department showed new orders for US manufactured goods rose by much less than anticipated in the month of December. The Commerce Department said factory orders inched up by 0.1% in December after falling by a revised 0.5% in November. Street had expected orders to climb by 0.5% compared to the 0.6% decrease originally reported for the previous month. The uptick in factory orders came as a jump in orders for durable goods was largely offset by a steep drop in orders for non-durable goods. The report said durable goods orders surged up by 1.2% in December, largely reflecting a 3.2% spike in orders for transportation equipment. Dow Jones Industrial Average declined 72.82 points or 0.28 percent to 25985.16 and S&P 500 was down by 1.52 points or 0.05 percent to 2792.38, while Nasdaq gained 5.21 points or 0.07 percent to 7554.51.


Crude oil futures ended higher on Wednesday after data from the Energy Information Administration (EIA) revealed that US crude supplies unexpectedly dropped by 8.6 million barrels. The decline followed five straight weeks of increases and defied most market forecasts. EIA also reported that supplies of gasoline fell by 1.9 million barrels, while distillates edged down by 300,000 barrels last week. Besides, oil prices also got some support after Saudi Arabia affirmed its commitment to reducing output. Benchmark crude oil futures for April rose $1.44 or 2.6 percent to settle at $56.94 a barrel on the New York Mercantile Exchange. April Brent crude surged $1.18 or 1.8 percent to settle at $66.39 a barrel on London's Intercontinental Exchange.


Extending weakness for the second day, Indian rupee depreciated against dollar on Wednesday, on increased demand for the US currency from importers. Traders remain concerned with the government data showing that fiscal deficit touched 121.5 percent of the full-year revised target of Rs 6.34 lakh crore at the end of January on account of lower revenue collections. The fiscal deficit stood at Rs 7.70 lakh crore during April-January of the current financial year ending March. At the end of January 2018, the deficit was 113.7 percent of the Revised Estimate (RE). Rising global crude oil prices also impacted the rupee movement. On the global front, US dollar was mixed against the other major currencies on Wednesday as the yen gained ground on the back of geopolitical tensions and the British pound pushed higher with investors expecting Brexit to be delayed. Finally, the rupee ended at 71.24, 17 paise weaker from its previous close of 71.07 on Tuesday.


The FIIs as per Wednesday'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 6711.93 crore against gross selling of Rs 5049.43 crore, while in the debt segment, the gross purchase was of Rs 972.65 crore with gross sales of Rs 2662.59 crore. Besides, in the hybrid segment, the gross selling was of Rs 1.97 crore against no buying.


The US markets ended mostly lower on Wednesday as investors focused on separate congressional testimonies from US Trade Representative Robert Lighthizer on US-China trade negotiations and a second day of Congressional hearings featuring Federal Reserve Chair Jay Powell. Asian markets are trading mostly in red on Thursday amid a spate of geopolitical concerns ranging from escalating tensions between India and Pakistan to US-China trade uncertainty. Indian markets ended lower for second straight session on Wednesday as tensions between India and Pakistan escalated. Today, the start of the F&O series expiry session is likely to be cautious tailing the weakness in other global markets. The conflict between India and Pakistan may also weigh on investor sentiments. Traders will be eyeing the data print for the December quarter GDP and core sector data that will be announced later in the day. Traders will be concerned about a private report stating that India's economy appeared to be losing momentum in the approach to a general election that must be held by May. The report forecast that growth slipped to 6.9% annually in the October-December quarter. Also, there will be some cautiousness with Fitch Ratings' statement that government's $7 billion (around Rs 48,000 crore) fund infusion into public sector banks (PSBs) would not be sufficient to support significantly stronger lending growth. Fitch estimated that banks would need an additional $23 billion (around Rs 1.6 trillion) in 2019, after these latest injections, to sufficiently meet minimum capital standards. However, some respite can come later in the day with a private report indicating that private equity (PE) investments in India witnessed a 36 per cent growth to $1,325 million despite fall in volume on account of increased follow-on investments last month as compared to a year ago. There will be some buzz in the steel sector stocks with rating agency Crisil's statement that domestic iron ore prices are likely to rise by 3-4% in 2019 on account of global supply glitch. Further, domestic steel prices are likely to soften following global cues. There will be some reaction in cement sector stocks with India Ratings report stating that domestic cement demand is expected to register a modest growth of 6-8% in fiscal 2020 mainly driven by the diminishing base effect, increased thrust on infrastructure by the Central government and the affordable housing segment.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes




Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank





State Bank of India





Tata Motors
















  • Wipro has expanded its global relationship with Microsoft Corporation to offer digital security services to their clients across the globe. 
  • Maruti Suzuki has launched the 2019 IGNIS, with new safety features and a distinct new look. 
  • Indian Oil Corporation has won licenses to retail gas in 10 cities in the tenth city gas bid round. 
  • HCL Technologies has launched flexible multi-band mobile backhaul solution enabled by Xilinx.
News Analysis