Tuesday turned out to be a dismal
day of trade for Indian equity benchmarks where frontline gauges ended the
session below their crucial 10,650 (Nifty) and 35,000 (Sensex) levels, as
traders opted to book profit after three days of continuous rally. Markets
started the session on cautious note but gained traction with traders taking
support from Economic Affairs Secretary Subhash Chandra Garg's statement that
the Indian economy is expected to grow between 7.3-7.5 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. Adding to the optimism, the India Meteorological Department (IMD) said
that the southwest monsoon hit Kerala today, three days before its scheduled
arrival. The onset of monsoon over the southern state marks the commencement of
the four-month long rainy season in the country. The IMD has made a forecast of
normal rainfall this season. Some support also came 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. However, selling which emerged in second half of the trade dragged
markets below their respective crucial levels. Sentiments weakened with a
private report stating that the June policy review meeting is likely to be a
close call, while the tone of the policy statement is expected to remain
hawkish. The markets participants paid no heed towards report that the Finance
Ministry has clarified applicability of the Goods and Services Tax (GST) on
farmers. It has said that support services like renting or leasing of land by
farmers for agriculture, forestry, fishing or animal husbandry are exempt from
the ambit of new indirect tax. Finally, the BSE Sensex declined 216.24 points
or 0.61% to 34,949.24, while the CNX Nifty was down by 55.35 points or 0.52% to
10,633.30.
The US markets ended sharply
lower on Tuesday with the Dow industrials down nearly 400 points as traders
reacted to fresh political drama in Italy after a three-day weekend. Italy's
president has appointed a former International Monetary Fund official as
interim prime minister with the task of planning for snap polls and passing the
next budget after weeks of uncertainty. Geopolitical uncertainty also kept some
traders on the sidelines following President Donald Trump's decision to call
off the historic summit with North Korean leader Kim Jong Un. In a post on
Twitter, Trump seemed pleased with the North Korean response to the
cancellation of the planned meeting. The tweet from Trump came after the
North's state-run Korean Central News Agency carried a statement by Vice
Foreign Minister Kim Kye-gwan. In the statement, Kim indicated North Korea
remains willing to hold talks with the U.S. and expressed a willingness to give
Trump the time and opportunity to reconsider his decision. Meanwhile,
sentiments also remained dampened on the back of latest batch of U.S. economic
data, including a report from the Commerce Department showing a bigger than
expected decrease in durable goods orders in the month of April. The Commerce
Department said durable goods orders slumped by 1.7 percent in April after
spiking by an upwardly revised 2.7 percent in March. The street had expected
orders to drop by 1.4 percent. The Dow Jones Industrial Average tumbled 391.64
points or 1.58 percent to 24361.45 and the S&P 500 declined by 31.47 points
or 1.16% to 2,689.86 and the Nasdaq was down by 37.26 points or 0.50 percent to
7396.59.
Crude oil futures extended their
losses for sixth straight day to end near 6-week low on Tuesday, with concerns
about a potential rise in oil supply. Investors also remained concern ahead of
an OPEC meeting that could see major producers lift output caps that have been
in place since January 2017. Besides, Saudi Arabia and Russia, two of the
world's top three producers, have recently signaled that OPEC and its allies
could decide at a June 22 gathering in Vienna to begin exiting their supply
cutting agreement. Traders were also awaiting the latest data from the Energy
Information Administration on US petroleum supplies, which will be released a
day later than usual because of Monday's holiday. Benchmark crude oil futures
for July delivery dropped $1.15 or 1.7 percent to settle at $66.73 a barrel on
the New York Mercantile Exchange. July Brent crude fell 9 cents or 0.1 percent
to settle at $75.39 a barrel on London's Intercontinental Exchange.
Reversing
a straight three-session uptrend, Indian rupee ended significantly weaker
against the Greenback on Tuesday, following fresh demand for the US currency
from banks and importers to meet the month end dollar demand. Sentiments
weakened with a private report stating that the June policy review meeting is
likely to be a close call, while the tone of the policy statement is expected
to remain hawkish. Investors paid no heed towards the India Meteorological
Department (IMD) stating that the southwest monsoon hit Kerala today, three
days before its scheduled arrival. The onset of monsoon over the southern state
marks the commencement of the four-month long rainy season in the country. The
IMD has made a forecast of normal rainfall this season. Besides, selling in
second half of the trade in the domestic equity markets, added some extra
pressure on the rupee. On the global front, pound fell to a six-month low
against a rallying dollar today, while it held its own against a euro dragged
down by concerns about a deepening political crisis in Italy. Finally, the
rupee ended at 67.88, 46 paise weaker from its previous close of 67.42 on
Monday.
The FIIs as per Tuesday's data were
net buyers in equity and debt segments both. In equity segment, the gross buying
was of Rs 4812.28 crore against gross selling of Rs 4432.80 crore, while in the
debt segment, the gross purchase was of Rs 651.96 crore with gross sales of Rs 622.70
crore. Besides, in the hybrid segment, the gross buying was of Rs 0.05 crore against
gross selling of Rs 0.16 crore.
The US markets moved sharply
lower during trading on Tuesday. The sell-off on Wall Street came as traders
used concerns about political uncertainty in Italy as an excuse to sell stocks.
All the Asian markets are trading in red on Wednesday as a sell-off in U.S. and
European markets weighed on sentiment during the Asian trading session. The
political crisis in Italy took center stage, with investors concerned over its
implications for the rest of the euro zone. Indian equity benchmarks fell
notably on Tuesday as weak cues from Asia and Europe prompted traders to book
some profits after three days of gains. Today, the markets are likely to make a
negative start amid feeble global cues as Italy's political turmoil roiled
global markets. Traders will also remain concern on report that Hardening
domestic fuel prices are likely to weigh on the Reserve Bank's rate setting
panel, MPC, at its 3-day meet from June 4. The monetary policy review will take
into account the retail inflation which rose to a 4-month high of 3.18 per cent
in April mainly on account of increasing prices of petrol and diesel. Traders
will get some support later in the day with Ficci's report that India's GDP
growth is expected at 7.1 per cent for the January-March quarter of the last
fiscal and 6.6 per cent for the entire 2017-18. The Central Statistics Office
(CSO) is scheduled to release GDP numbers for the fourth quarter as well as the
2017-18 fiscal on May 31. Some solace will also came with exporters body FIEO's
statement that India's exports are expected to record a growth of about 15-20
per cent and touch $350 billion in the current fiscal on account of a host of
factors including rise in commodity prices. There will be buzz in banking
stocks after audits undertaken by the Reserve Bank of India revealed that bad
loans at the country's five biggest state-run banks are about Rs 47,000 crore
more than what the lenders had assessed.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,633.30
|
10,593.85
|
10,695.00
|
BSE Sensex
|
34,949.24
|
34,836.23
|
35,148.19
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Vedanta
|
329.37
|
253.25
|
242.43
|
259.53
|
SBI
|
161.08
|
264.30
|
261.08
|
269.23
|
ICICI Bank
|
129.70
|
289.90
|
285.88
|
296.33
|
ONGC
|
110.15
|
175.55
|
173.40
|
177.55
|
Indian Oil
|
109.05
|
172.45
|
169.87
|
174.52
|
L&T has reported rise of 4.72% in its consolidated net profit at Rs 3,167.47 crore for Q4FY18 as compared to Rs 3,024.61 crore for Q4FY17.
ITC is in the process of acquiring the Nimyle brand of floor cleaner from Arpita Agro, in order to boost revenue from its non-cigarette FMCG segment.
Coal India has reported a fall of 52.36% in its consolidated net profit at Rs 1,295.22 crore for Q4FY18 as compared to Rs 2,718.75 crore for Q4FY17.
Vedanta has received an order from the Government of Tamil Nadu directing the TNPCB to seal the company's Copper Smelter Plant 1 at Thoothukkudi District, Tamil Nadu and to close the said plant permanently.