NSE Intra-day chart (19 February 2018) | | | Top Gainers | | | Top Losers | | | World Indices | | | Indices | | | FII Activity(Rs. Cr) | | |
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Market Commentary | | 20 February 2018 | |
Markets likely to make pessimistic start on weak Asian cues
Indian equity benchmarks ended
the Monday's trade on disappointing note with frontline gauges settling below
their crucial 33,800 (Sensex) and 10,400 (Nifty) levels. Markets started the
session on pessimistic note, as traders remained concerned with report that an
index mapping the country's short-term financial conditions has plunged over 12
points for the fourth quarter of the current fiscal ending March 31, as
compared to the previous quarter. A joint study by the Confederation of Indian
Industry (CII) and the Indian Banks' Association (IBA) has indicated that the India's
financial conditions index stood at 53.2 for Q4 (January-March) of 2017-18 as
against 65.3 in the previous quarter, thereby registering a significant fall of
12.1 points. Sentiments also remained dampened on report that in lieu of the
ongoing fraudulent transaction scam involving Punjab National Bank, the
ASSOCHAM demanded that the government to reduce its stake in banks to less than
50. Meanwhile, the government's chief economic advisor Arvind Subramanian
underlined the need for more privatization in the banking sector. Adding to the
pessimism, foreign investors, so far this month, have pulled out a staggering
$1 billion or Rs 6,850 crore from equities during February 1-16 from the Indian
stock market in the wake of sell-offs globally. This is against the total
inflow of over Rs 13,780 crore by Foreign Portfolio Investors (FPIs) in
January. The selling got intensified and markets even went to test their
psychological 33,600 (Sensex) and 10,300 (Nifty), but key gauges got strong
support near those levels and managed to prune some of their losses to end off
day's low. Some solace came with Prime Minister Narendra Modi's statement that
the budget reforms have created a new work culture and they are transforming
the socio-economic landscape of the country. He said the budget was not limited
to outlay, its focus was on the outcome. Finally, the BSE Sensex declined
236.10 points or 0.69% to 33,774.66, while the CNX Nifty was down by 73.90
points or 0.71% to 10,378.40.
U.S. equity
markets remain closed for Presidents' Day holiday.
Extending winning streak for the
fourth straight day, Crude oil prices climbed higher on Monday, with the
commodity picking up where it left off last week, when prices rebounded as
investor appetite for riskier assets improved. Moreover, an escalation in
tensions in the Middle East also took oil prices northward, with Israel's Prime
Minister Benjamin Netanyahu warning that his country will directly strike oil producer
Iran if Tehran uses Syria to test his country. Meanwhile, US inventory data
continued to provide some support as it reported smaller than expected builds
of 1.8 million during last week. Benchmark crude oil futures for March delivery
surged 80 cents or 1.3 percent, at $62.35 a barrel on the New York Mercantile
Exchange. April Brent crude gained 72 cents or 1.1 percent to settle at $65.56
a barrel on London's Intercontinental Exchange.
Indian
Money market remained closed on Monday on account of Chhatrapati Shivaji
Maharaj Jayanti.
The FIIs as per Friday's data
were net sellers in equity and debt segments both, in equity segment, the gross
buying was of Rs 4415.89 crore against gross sell of Rs 4550.42 crore, while in
the debt segment, the gross purchase was of Rs 738.39 crore with gross sales of
Rs 780.32 crore. Besides, in the hybrid segment, the gross selling of Rs 0.56
crore against no buying.
The US markets remain closed on
Monday for a holiday. Asian stocks were trading under pressure in morning
trade, tracking losses in European stocks. Japanese Nikkei edged notably lower
despite a weaker yen. On the economic front, Japan will see January results for
machine tool orders and convenience store sales today. Indian equity markets
fell notably on Monday after the Rs 11,400 crore banking fraud unearthed at
Punjab National Bank (PNB) last week raised worries over the systemic and
others risk management systems prevailing within the banking ecosystem. Today,
markets is likely to make pessimistic start, tracking weakness in regional
counterparts and recent developments with the loan fraud in PNB. The Central
Bureau of Investigation arrested three more employees of PNB on Monday over a
$1.77 billion loan fraud, and the government said the scandal exposed a
supervisory failure by the Reserve Bank of India (RBI). Sentiments will also
remain dampen with Labour Ministry survey stating that contractual workers and
casual labourers are among the worst hit during the April-June quarter of the current
financial year with manufacturing reporting 87,000 job loss. However, traders
will get some relief with Suresh Prabhu's statement that the government will
soon come out with a comprehensive strategy to increase the share of global
trade to 40 per cent of the gross domestic product (GDP), which is expected to
touch $5 trillion by 2025. There will be buzz in stocks related to telecom
sector on report that the Cabinet is likely to decide next month on the relief
package for the telecom sector, based on the recommendations of an
inter-ministerial group, including giving more time to telecom operators to
make payment for spectrum and increasing the holding limit of radio waves.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
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Previous close
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Support
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Resistance
|
NSE Nifty
|
10,378.40
|
10,290.98
|
10,477.58
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BSE Sensex
|
33,774.66
|
33,511.70
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34,080.29
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Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
438.48
|
268.50
|
259.43
|
274.78
|
ICICI Bank
|
190.44
|
319.75
|
313.43
|
327.83
|
Tata Steel
|
176.59
|
648.85
|
627.43
|
681.83
|
Yes Bank
|
93.11
|
312.05
|
308.07
|
315.52
|
Vedanta
|
86.42
|
320.35
|
314.80
|
325.20
|
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Palred Technologies (PTL), through its subsidiary - Palred Technology Services, has inaugurated its South Indian fulfillment center in Kurnool, in the Rayalaseema region of Andhra Pradesh. PTL, headquartered in Hyderabad, owns and operates...
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Prime Customer Services has received an approval to enter into an agreement with Reliance Retail for manufacturing of Bakery Products. The Board of Directors of the company at their meeting held on February 16, 2018 approved the same.
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