Indian equity bourses managed to
settle with notable gains on Monday, with both the larger peers, Sensex and
Nifty, closing higher by over 0.40% each. The start of the day was fabulous,
aided by the Reserve Bank of India (RBI) Governor Shaktikanta Das' statement that
the revised guidelines to deal with stressed assets will sustain improvement in
credit culture that have been ushered in by the efforts of the Government and
the Reserve Bank so far and will go a long way in promoting a strong and
resilient financial system in India. Traders also took support with a report
that foreign investors have pumped in a net amount of Rs 7,095 crore into the
Indian capital markets during the first week of June in anticipation of
continued policy reforms. However, markets turned volatile in afternoon deals,
after Commerce and Industry Minister Piyush Goyal said that slowdown in global
trade and investment is of serious concern as it adversely affects economic
growth, development and job creation. He has called for de-escalating trade
tensions and reviving confidence in the rules-based multilateral trading
system. But, in the last leg of trade, key indices extended their gains with
Moody's Investors Service stating that the RBI's revised framework for the
resolution of stressed assets is credit positive, because it brings back the
focus on the need for the timely resolution of such assets and the buildup of
loan loss provisioning against those assets, Traders remained positive with
Trade Promotion Council of India's statement that the government should take
six concrete steps such as reducing cost and time of port clearance for goods
and enhancing availability of credit with a view to boost exports. Finally, the
BSE Sensex gained 168.62 points or 0.43% to 39,784.52, while the CNX Nifty was
up by 52.05 points or 0.44% to 11,922.70.
The US markets ended higher on
Monday, with the Dow gaining for the sixth session in a row, as investors
continued to snap up global equities after the US and Mexico have reached an
agreement to avert President Donald Trump's threatened tariffs on all Mexican
imports. President Donald said on Friday that the 5 percent tariff he
threatened to impose on Mexican imports beginning today has been indefinitely
suspended. The suspension of the tariff threat comes as the two countries
signed a deal Trump claims will help stop the flow of migrants through Mexico
and into the US. Details of the deal announced by the State Department
indicated Mexico will take unprecedented steps to increase enforcement to curb
irregular migration, including deploying 6,000 troops from its newly formed
National Guard to its southern border. Meanwhile, Group of 20 finance leaders
vowed to protect global growth from disruptions such as trade tensions. During
a sideline meeting, US Treasury Secretary Steven Mnuchin had a candid and
constructive talk with People's Bank of China Gov. Yi Gang. However, Trump
warned that the tariffs will be reinstated if Mexico's legislative body does
not approve an unrevealed but very important part of the deal. The president
also indicated that he would continue to use tariffs to advance American
interests in trade talks with China. Trump argued that existing tariffs on
Chinese imports will force China to make a deal and threatened to impose more
tariffs if Chinese President Xi Jinping does not attend a planned meeting at
the G-20 summit later this month. Dow Jones Industrial Average surged 78.74
points or 0.30 percent to 26062.68, Nasdaq rose 81.07 points or 1.05 percent to
7823.17 and S&P 500 was up by 13.39 points or 0.47 percent to 2886.73.
Crude oil futures ended lower on
Monday as investors focused on worries about slowing global growth and
uncertainty surrounded Russia's decision on whether to extend production curbs
beyond their expiration this month. Meanwhile Russian Energy Minister Alexander
Novak said he could not rule out a scenario in which oil falls to $30 a barrel
if a global agreement was not extended. However, the US decision to shelve
tariffs on Mexican imports provided some underlying support to oil prices.
Benchmark crude oil futures for July dropped 73 cents or 1.4 percent to settle
at $53.26 a barrel on the New York Mercantile Exchange. August Brent fell $1 or
1.6 percent to settle at $62.29 a barrel on London's Intercontinental Exchange.
Indian rupee continued to slide against the American
currency for the third day on Monday, on increased demand for the greenback
from importers and banks. Traders remain anxious with India Meteorological
Department's (IMD) data which showed that a delay in the arrival of monsoon has
pushed the country's rainfall deficiency in the first nine days of June to 45%.
Monsoon made an onset over Kerala on June 8, a week after its normal arrival
date. This has also delayed its arrival in different parts of the country. The
domestic currency was also weighed down by dollar's strengthen against some
other currencies overseas along with rising crude oil prices. On the global
front, pound tumbled against the dollar, after the Office for National
Statistics reported the economy shrank 0.4% in April compared to March.
Finally, the rupee ended at 69.65, 19 paise weaker from its previous close of
69.46 on Friday.
The FIIs as per Monday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 3029.92 crore against gross
selling of Rs 3414.80 crore, while in the debt segment, the gross purchase was
of Rs 2788.81 crore with gross sales of Rs 595.54 crore. Besides, in the hybrid
segment, the gross buying was of Rs 14.86 crore against gross selling of Rs
16.90 crore.
The US markets ended in green on
Monday, buoyed by relief over the White House's decision to drop a threat to
hit Mexico with tariffs on billions of dollars of goods. Asian markets are
trading mostly higher on Tuesday after the Trump administration shelved plans
for tariffs against Mexico. Indian markets ended higher for second straight
session on Monday with gains of around half a percent each. Today, the start of
session is likely to be marginally in green amid positive global cues. Traders
await retail inflation and industrial production data due to be released this
week for cue about the health of Indian economy. Investors will be taking
encouragement with report that foreign institutional investors (FIIs) bought
shares worth Rs 216 crore on a net basis in the cash market, while domestic
institutional investors (DIIs) bought shares worth Rs 171 crore. Traders will
also be taking some support with report that SEBI proposed an informant
mechanism to blow the whistle on insider trading cases, wherein genuine
whistleblowers could get monetary reward of Rs 1 crore as well as amnesty from
regulatory action. Some support may also come with latest data from industry
body the Association of Mutual Funds of India (Amfi) showing that average
Assets Under Management (AUM) of mutual funds rose to Rs 25.43 trillion in May
from Rs 25.27 trillion in the previous month on the back of increased inflows
into equity-linked schemes. Traders may take note of a report that banks will
now provide cheque books and other facilities to basic account holders, with the
Reserve Bank of India relaxing the norms on June 10. Though, the banks cannot
ask the account holders to maintain any minimum balance in lieu of such
facilities. There may be some cautiousness with the Crisil's report that the
system-wide non-performing assets stock has declined massively to 9.3 percent
in March 2019, much faster than the Reserve Bank's estimate and steeply down
from 11.5 percent the year before. Bad loan recognitions accelerated largely
due to a nudge from the Reserve Bank, which wanted bank balance sheets to
reflect a true picture of the stress. There will be some reaction in insurance
stocks with a private report indicating that the insurance industry in India
saw a growth spike after privatisation, but the penetration of products still remains
low.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,922.70
|
11,871.28
|
11,974.58
|
BSE Sensex
|
39,784.52
|
39,609.83
|
39,969.34
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
863.99
|
135.90
|
130.63
|
143.08
|
SBIN
|
205.01
|
344.30
|
340.53
|
347.68
|
Tata Motors
|
202.10
|
166.20
|
162.48
|
170.98
|
ICICI Bank
|
130.75
|
416.10
|
411.82
|
421.57
|
ONGC
|
108.66
|
164.65
|
162.23
|
168.03
|
Wipro has rolled out Total Operations System CREW, a fully-integrated IT product suite for global airlines.
Cipla has received the EIR for the inspection done by USFDA at the Kurkumbh manufacturing facility.
Tech Mahindra has signed a MoU with IIT Kanpur towards the knowledge enrichment and conducting joint research in the field of cybersecurity.
JSW Steel has received approval from the NCLT for the scheme of amalgamating its four units.