It turned out to be a stable day
for the Indian benchmark indices, which climbed well over half a percent point
and managed to end above the crucial support levels. Investors remained optimistic
on hopes that the Goods and Services Tax (GST) will be implemented on time. The
government introduced the supporting legislation for the GST in Parliament on
Monday, reinforcing expectations that it would make the July 1 deadline for the
roll-out of this singular tax reform. According to Revenue Secretary Hasmukh
Adhia, GST will not only usher in a transparent tax system thereby reducing
cascading of taxes, but will also result in reduction of prices for consumers
and broaden the tax base in the country. Investors got further confidence with
the report that manufacturing activity improved in March after a three months
of decline, while various government measures are likely to push up activity in
the infrastructure sector going forward. The yearly SBI Composite Index, one of
leading indicator for manufacturing activity in the Indian economy, bounced
back to above 50-mark level to 50.3 after 3-months of decline. The report also
noted that going by the findings, index of industrial production (IIP) growth may
continue to be in the positive territory in February and March, this year.
However, gains remained capped with the report that India will face a below
normal rainfall during the June to September south-west monsoon season. About
70% of India's rainfall happens in this period and irrigates almost half of
India's farmland, being of particular importance for Kharif crops. Finally, the
BSE Sensex surged 172.37 points or 0.59% to 29409.52, while the CNX Nifty was
up by 55.60 points or 0.61% to 9,100.80.
The US markets closed higher on
Tuesday, with the Dow Jones Industrial Average snapping its eight-day losing
streak, as investors' cheered better-than-expected economic data. Attracting
the most attention was a reading of consumer confidence in March, which soared to
the highest level in more than 16 years. The Conference Board said its consumer
confidence index leapt to 125.6 in March from 116.1 in February. Consumer
confidence has taken off since the election of President Donald Trump, on the
prospect of lower taxes and more infrastructure spending. Confidence has yet to
be impacted by Congress's inability so far to enact the president's ambitions.
The cutoff data for responses was March 16, before Republicans were forced to
scrap a vote on repealing and replacing Obamacare. Additionally, an early look at US trade
patterns in February shows a nearly 6% drop in the nation's trade deficit,
reversing a big increase in the prior month. The trade gap in goods - services
is excluded - fell to $64.8 billion in February from $68.8 billion in January.
Wholesale inventories, meanwhile, jumped 0.4% in February and retail
inventories also rose 0.4%. The Dow Jones Industrial Average added 150.52
points or 0.73 percent to 20,701.50, Nasdaq was up 34.77 points or 0.60 percent
to 5,875.14, while S&P 500 gained 16.98 points or 0.73 percent to
2,358.57.
Crude oil futures snapping their
long losing streak finally moved higher on Tuesday on reports that that Libya halted
the pipeline from its biggest field, while comments from officials suggesting
OPEC could extend its current deal beyond June, too lifted sentiment for the
traders. Iranian Oil Minister Bijan Zanganeh, said a global deal aimed at
reducing the glut in supply is likely to be extended beyond June but that time
is needed to discuss the subject. Armed factions at the western Libyan oil
fields of Sharara and Wafa blocked production, reducing output by 252,000
barrels per day (bpd), about a third of production. The OPEC member will see considerable
output decline due to armed protests. Benchmark crude oil futures for May
delivery moved higher by $0.64 or 1.3% to $48.37 on the New York Mercantile
Exchange. In London, Brent crude for May delivery ended higher by $0.55 at $51.44
on the ICE.
The Indian money markets remained
closed on Tuesday on account of a local holiday.
The FIIs as per Monday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 5359.81 crore against gross selling of Rs 4776.19 crore, while
in the debt segment, the gross purchase was of Rs 1472.39 crore with gross
sales of Rs 557.66 crore.
The US markets bounced back in
last session, with the Dow snapping an eight-session losing streak, following the
release of a report from the Conference Board showing an unexpected improvement
in consumer confidence in the month of March. The Asian markets have made a
mixed start with some indices trading marginally in red, though other markets
are up on rekindled optimism in the strength of the US economy after rise in
consumer confidence. The Indian markets surged in last session on good global
cues and after the government introduced four bills on the Goods and Services
Tax (GST) in the lower house of parliament, paving the way for its
implementation from July 1. Today, the start of the penultimate session of the
F&O series expiry is likely to be in green and some upmove can be seen in
early deals, however trade may turn volatile latter in the day owing to series
expiry next day. Traders will be eyeing the parliament proceedings too, where
the government has listed the Goods and Services Tax (GST) Bills for discussion
and passage in the Lok Sabha today. Finance Minister Arun Jaitley terming the
GST bill revolutionary hoped all the political parties would pass the related
bills through consensus in the current session of Parliament. Meanwhile, the
government will borrow from markets about Rs 3.72 lakh crore in the first half
of next fiscal beginning April, which is 64 percent of the borrowing target for
full financial year. The Centre would also issue treasury bills worth Rs 26,000
crore in the first half of the fiscal. There will be some buzz in the steel
sector stocks on report that in the last nine months, steel exports from India
increased 77 per cent to 6.62 mt while imports fell by 65 per cent to 6.59 mt,
turning India a net exporter.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9100.80
|
9083.60
|
9114.20
|
BSE Sensex
|
29409.52
|
29326.43
|
29467.39
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Bank of Baroda
|
202.09
|
173.90
|
172.17
|
174.97
|
SBI
|
186.73
|
282.10
|
279.43
|
283.83
|
IDEA
|
179.77
|
88.50
|
87.43
|
89.78
|
ICICI Bank
|
126.22
|
277.00
|
275.55
|
278.00
|
Axis Bank
|
111.95
|
502.80
|
493.57
|
508.52
|
Aurobindo Pharma has received final approval from the USFDA to manufacture and market Meropenem Injection 500 mg/vial and 1 g/vial.
Larsen & Toubro's construction arm -- L&T Constructions has bagged a major residential order worth Rs 2,903 crore.
M&M is planning to launch two new SUV products over the next two years in order to arrest the fall in its market share.
ICICI Bank has entered into partnership with Truecaller to power a new UPI based mobile payment service.