Extending their northward journey
for third straight session, Indian equity benchmarks ended the Monday's trade
in green terrain with frontline gauges recapturing their crucial 35,100
(Sensex) and 10,650 (Nifty) levels, as oil extended a steep decline in the
previous session, helping ease recent fears over inflation, current account and
fiscal deficits. Markets started the session on an optimistic note with traders
taking encouragement with Industry chamber CII's statement that businesses
across several key sectors are seeing firm growth in sales and orders,
indicating that the economy is on a recovery path and investments will pick up.
CII said the impact of sustained structural reforms is now being felt on the
ground as a mammoth economy is turning around. Some support also came with CARE
Ratings' report stating the country's industrial output is expected to log five
to six per cent growth in this fiscal, bettering 4.3% growth rate clocked in the
previous fiscal. Adding to the optimism, a private report said India's economy
may have expanded by 7.1-7.5% in the January-March quarter - driven by
manufacturing and construction - compared with 7.2% in the third quarter.
Meanwhile, the finance ministry is planning to set up a fund under the National
Investment and Infrastructure Fund (NIIF) dedicated for strategic investments. Local
bourses added some more gains in second half on report stating that India is in
a good position to deal with any fallout from global trade tensions and with
right policies can reach an 8%-plus growth rate and hold it. The report also
said that India's services sector exports remain globally competitive and have
a huge potential. Investors also took note of Commerce and Industry Minister
Suresh Prabhu's statement that India has a huge potential to boost trade and
investments with Russia. Some support also came with Finance Minister Arun
Jaitley's statement that India has transformed from being a part of the
fragile five to the bright spot on the global economic stage. He added that
the government will now focus on consolidation of the initiatives taken in the
past. Finally, the BSE Sensex rose 240.61 points or 0.69% to 35,165.48, while
the CNX Nifty was up by 83.50 points or 0.79% to 10,688.65.
The US markets
remained closed on Monday on account of Memorial Day holiday.
Extending losing streak for the
fifth straight session, crude oil futures slumped once again on Monday, as
investors remained nervous about the prospect of major oil producers such as
Russia and Saudi Arabia boosting production, and as U.S. output also showed
signs of picking up. Beyond the prospect of those part of the production-cap
deal led by the Organization of the Petroleum Exporting Countries (OPEC)
agreeing to higher output, was Friday afternoon's disclosure that active U.S. oil-drilling
rigs rose by the most since February the past week. Benchmark crude oil futures
for July delivery fell $1.18 or 1.8 percent to settle at $66.69 a barrel on the
New York Mercantile Exchange. July Brent crude slipped $1.10 or 1.4 percent to
settle at $75.35 a barrel on London's Intercontinental Exchange.
Indian
rupee ended at two-week high against US dollar on Monday taking its winning
streak for third straight session, after crude oil prices posted its biggest
drop in about a year and the US-Korea summit appears to be back on track.
Traders took encouragement with CARE Ratings' report stating the country's industrial
output is expected to log five to six per cent growth in this fiscal, bettering
4.3 per cent growth rate clocked in the previous fiscal. Adding some optimism
among the investors, Finance Minister Arun Jaitley said that India has
transformed from being a part of the fragile five to the bright spot on the
global economic stage. He added that the government will now focus on
consolidation of the initiatives taken in the past. On the global front, dollar
index ended higher against some of its rivals as investors awaited Federal
Reserve Bank of St. Louis President James's speech scheduled on Tuesday and the
U.S. Non-Farm Payrolls due on Friday. Finally, the rupee ended at 67.42, 35
paise stronger from its previous close of 67.77 on Friday.
The FIIs as per Monday's data were
net sellers in equity and debt segments both. In equity segment, the gross buying
was of Rs 3279.77 crore against gross selling of Rs 5326.97 crore, while in the
debt segment, the gross purchase was of Rs 1015.77 crore with gross sales of Rs
1066.05 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.39 crore
against gross selling of Rs 0.90 crore.
The US markets remained closed on
Monday on account of Memorial Day holiday. Asian markets were trading mostly in
red in early deals on Tuesday, on the back of slide in oil prices. Political
turmoil in Italy weighed on sentiment, resulting in a more than 2 percent fall
overnight for Italian stocks. Indian equity benchmarks edged higher for the
third straight session on Monday as geopolitical worries abated and a steep
drop in oil prices helped ease investor worries over inflation and twin
deficits. Today, the markets are likely to make a cautious start as traders may
opt to pare their profit after three sessions of gains amid weak Asian cues.
Traders will get some support later in the day with Economic Affairs Secretary
Subhash Chandra Garg's statement that the Indian economy is expected to grow
between 7.3 to 7.5 percent in the March quarter. The government will release
GDP data on Thursday. He said the country was expected to grow at 6.7 percent
in the 2017/18 financial year that ended in March. Some support may also come
with External Affairs Minister Sushma Swaraj's statement that her ministry's
economic diplomacy attracted $209.83 billion for India's flagship development
programmes. She also said that the External Affairs Ministry also created two
new divisions for this - Department of Economic Diplomacy and Department of
States - and merged both of them. Some optimism will also be there with the
India Meteorological Department (IMD) forecasting that the Monsoon would hit
Kerala in the next 24 hours. It said that the southwest Monsoon had advanced
into South Andaman Sea, some parts of South Bay of Bengal and Nicobar Islands
on May 25, with enhanced cloudiness and rainfall. Meanwhile, Oil Minister
Dharmendra Pradhan has said that the government is planning a holistic strategy
to find long-term solution to spike in petrol and diesel prices triggered by a
spurt in international rates.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,688.65
|
10,649.53
|
10,718.78
|
BSE Sensex
|
35,165.48
|
35,034.33
|
35,268.79
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Indian Oil
|
237.86
|
170.45
|
167.50
|
175.20
|
ICICI Bank
|
190.63
|
299.25
|
294.30
|
303.25
|
SBI
|
189.59
|
272.05
|
267.33
|
275.48
|
Sun Pharma
|
160.08
|
499.70
|
484.82
|
509.77
|
Hindustan Petroleum
|
119.90
|
313.10
|
307.93
|
316.83
|
L&T's construction arm - L&T Construction's Water & Effluent Treatment Business has bagged orders worth Rs 5,704 crore.
Power Grid has tied up with EEF to offer digital solutions at Army-run schools in Jammu and Kashmir.
TCS has increased its spending on R&D and innovation initiatives by over 17 percent to Rs 15 billion in 2017-18, compared to the previous year.
Sun Pharma has reported a rise of 6.97% in its consolidated net profit at Rs 1308.96 crore for Q4FY18 as compared to Rs 1223.71 crore for Q4FY17.