Indian stock markets witnessed a
fairly stable day of trade on Thursday, as sanguinity got reinforced after
minutes from the Federal Reserve's last meeting showed a lack of consensus on
the future pace of interest rate increases. Wednesday's optimism got spilled
over into the Thursday's session helping the frontline indices in extending the
winning momentum for second successive session, as sentiments got a boost after
International Monetary Fund's (IMF's) report that India's growth outlook has
improved as the impact of last year's demonetization exercise seems to be
fading and recent key structural reforms continue to pay off. Besides, hopes of
positive quarterly earnings and smooth roll-out of the goods and services tax
(GST) also lifted sentiment. Some support also came with a private report
indicated that Indian economy is expected to recover in the coming quarters and
the country is expected to clock a real GDP growth of 6.9 percent in this
financial year. The report also noted that the negative effects from the
demonetization measure is already wearing off, and the Indian economy will
likely benefit from positive demographic trends, greater external stability
(due to improved terms of trade from low oil prices), and continued reforms
that should help to improve the country's admittedly poor business environment.
Investors' morale remained upbeat as Finance Minister Arun Jaitley said that
despite the anticipation of initial disruptions on account of the GST, the
rollout of the new indirect tax regime from July 1 was smooth and without any
significant glitches. Meanwhile, PSU Banking stocks gained traction after
brokerage houses upgraded leading PSUs such as Bank of Baroda and Punjab
National Bank as valuations turned reasonable after recent correction on NPA
concerns. Finally, the BSE Sensex gained 123.78 points or 0.40% to 31369.34,
while the CNX Nifty was up by 36.95 points or 0.38% to 9,674.55.
The US markets closed lower on
Thursday, as investors continued to rotate out of battered technology names. A
combination of geopolitical jitters and growing signs that global central banks
are inching closer to unwinding policies that have helped to support both
stocks and government bonds is also weighing on the broader market. A round of
economic data, including readings on private-sector payrolls and weekly
layoffs, did little to soothe worries about the expected muted pace of the
Federal Reserve's policy plans. On the economy front, the trade deficit fell
2.3% in May, largely because of fewer imports of cellphones and other consumer
goods, but the longer-run outlook for the US was still grim. The deficit
slipped to $46.5 billion in May from $47.6 billion in April. Exports continued
to improve as the US shipped $192 billion worth of goods and services to other
countries, a 0.4% increase. Meanwhile, the number of Americans who applied for
unemployment benefits rose slightly at the end of June but remained near the
lowest level in years. Initial jobless claims in the period running from June
25 to July 1 increased 4,000 to a seasonally adjusted 248,000. The Dow Jones
Industrial Average lost 158.13 points or 0.74 percent to 21,320.04, Nasdaq
dropped 61.4 points or 1.00 percent to 6,089.46, and S&P 500 edged lower by
22.79 points or 0.94 percent to 2,409.75.
Crude oil futures recovered a bit
on Thursday, amid a surprisingly large drop in U.S. oil stockpiles. The Energy
Information Administration (EIA) said that inventories of U.S. crude fell by
roughly 6.3m barrels in the week ended June 30, confounding expectations of
draw of about only 2.3m barrels. Gasoline inventories too unexpectedly fell by
roughly 3.7m barrels, while distillate stockpiles fell by 1.85m barrels. Benchmark
crude oil futures for August delivery gained $0.39 or 0.7 percent to $45.52 on
the New York Mercantile Exchange. In London, Brent crude for August delivery
ended up by $0.16 at $47.95 a barrel on the ICE.
Indian
rupee ended marginally higher against dollar on Friday due to sustained selling
of the US currency by exporters and banks. Local currency got some support with
International Monetary Fund's (IMF's) statement that India's growth outlook has
improved as the impact of last year's demonetization exercise seems to be
fading and recent key structural reforms continue to pay off. Moreover,
positive gains in the local equity markets coupled with weak dollar against
some currencies overseas too gave the rupee some support. On the global front,
dollar's bounce stalled on Thursday after the US Federal Reserve's policy
minutes failed to provide a clear picture of future interest rate increases,
although investors were reluctant to add bearish bets before some key US data.
Finally, the rupee ended at 64.77, 1 paise stronger from its previous close of
64.78 on Wednesday.
The
FIIs as per Thursday'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
3521.81 crore against gross selling of Rs 3396.90 crore, while in the debt
segment, the gross purchase was of Rs 541.52 crore with gross sales of Rs
1199.50 crore.
The US markets extending their
sluggishness deposed around a percent in last session, following the release of
a report from payroll processor ADP showing weaker than expected private sector
job growth in the month of June. The Asian markets have made mostly a lower
start with some indices declining by around half a percent in early deals.
Japanese market was down tracking the weak cues overnight from Wall Street as
well as rising global bond yields. The Indian markets despite slowing down in
the final hours managed gains of about half a percent in last session. Today,
the start may remain cautious on sluggish global cues, however there will be
some support to the markets in latter trade with report that net direct tax
collection grew by 14.8 per cent to Rs. 1.42 lakh crore at the end of first
quarter on account of surge in advance tax payments. As per the finance
ministry the net direct tax collection represents 14.5 per cent of the total
Budget Estimates of direct taxes of Rs 9.8 lakh crore for 2017-18. Meanwhile,
Finance Minister Arun Jaitley has said that the rollout of the Goods and
Services Tax has been smooth, without causing much disruption. He said the
economy has not been disrupted and we don't expect any disruption ahead,
refuting critics who had thought that the GST rollout would impact trade and
industry. Markets are also likely to get some support with Labour Minister
Bandaru Dattatreya's statement that the retirement fund body EPFO's investment
in stocks through exchange traded funds (ETFs) would cross the Rs 45,000-crore
mark by the end of this fiscal. There will be some buzz in the PSU banking
stocks on report that the government is likely to infuse more money in
state-run banks amid a crackdown on bad loans and increasing capital needs
under Basel III guidelines. The exact amount will be decided after the first
quarter earnings of banks are available.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9674.55
|
9642.77
|
9703.52
|
BSE Sensex
|
31369.34
|
31269.23
|
31465.07
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
161.16
|
281.00
|
276.17
|
284.27
|
ITC
|
134.29
|
337.10
|
332.68
|
340.13
|
Bank of Baroda
|
119.34
|
162.40
|
160.60
|
165.00
|
Vedanta
|
105.60
|
261.65
|
259.85
|
263.45
|
ICICI Bank
|
99.68
|
293.75
|
292.37
|
295.12
|
Axis Bank has launched Super Bike Loans for 500cc and above bikes.
ICICI Bank has inked an agreement with Employees Provident Fund Organisation for collection of remittances and payments to beneficiaries, at zero transaction charges.
Mahindra & Mahindra has reported 7.38% rise in its production to 38872 units in June 2017 as compared to 36199 units in same month last year.
Bharti Airtel is planning to sell controlling stake in tower arm Bharti Infratel to pare over $14 billion of debt and release funds for network expansion.