NSE Intra-day chart (11 March 2019)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
 
Market Commentary 12 March 2019
Benchmarks to make gap-up opening on firm global cues

 

Dalal Street witnessed jubilation on Monday, with Sensex and Nifty closing above their 37,000 and 11,150, respectively. The markets made a gap-up opening, as Economic Affairs Secretary Subhash Chandra Garg expressed confidence that fiscal deficit target of 3.4 per cent for 2018-19 would be met as shortfall in indirect tax collection would be compensated by lower expenditure. Adding optimism among traders, Commerce and Industry minister Suresh Prabhu said that the government has set a target of attracting $100 billion in foreign direct investments over the next two years. The minister said the government is conducting a sector analysis for FDI investments and is preparing suitable policies which will help in bringing foreign funds. Investors took encouragement with Railways Minister Piyush Goyal's statement that the government has brought sustainable changes instead of temporary adjustments. He also said that the government took the fruits of progress to under-developed parts of the country, further highlighting that the country has become perhaps the fastest growing economy in the world from a fragile economy. Bulls held their grip on the markets throughout the session, as Reserve Bank of India (RBI) reported that the country's foreign exchange reserves increased by $2.599 billion in the week to March 1 to reclaim the $400 billion-mark. The forex reserves stood at $401.776 billion in the reporting week. In the previous week, the reserves had risen by $944.7 million to $399.217 billion. Some support also came with a report that the central government so far transferred Rs 5,215 crore to over 2.6 crore small and marginal farmers under the PM-Kisan scheme announced in the last month's interim budget. The market participants paid no heed towards the latest data report on public debt which showed that total liabilities of the government increased to Rs 83.40 lakh crore at the end of the December 2018 quarter from Rs 82.03 lakh crore in the previous quarter of the current fiscal. Finally, the BSE Sensex gained 382.67 points or 1.04% to 37,054.10, while the CNX Nifty was up by 132.65 points or 1.20% to 11,168.05.

 

Snapping their five-day losing streak, the US markets ended higher on Monday following the release of a report from the Commerce Department showing an unexpected uptick in US retail sales in January. The Commerce Department said retail sales rose by 0.2% in January after tumbling by a revised 1.6% in December. The rebound in retail sales came despite a substantial decrease in sales by motor vehicle and parts dealers, which nosedived by 2.4% in December after rising by 0.3% in December. Excluding the steep drop in auto sales, retail sales climbed by 0.9% in January after plummeting by a revised 2.1% in December. Ex-auto sales had been expected to increase by 0.3% compared to the 1.8% plunge originally reported for the previous month. The stronger than expected ex-auto sales growth reflected sharp increases in sales by sporting goods, hobby, musical instrument, and book stores and building materials and supplies dealers. Meanwhile, business inventories in the US increased in line with Street estimates in the month of December, according to a report released by the Commerce Department. The report said business inventories climbed by 0.6% in December, while revised data showed inventories were unchanged in November. Street had expected inventories to increase by 0.6% compared to the 0.1% uptick originally reported for the previous month. Wholesale and retail inventories jumped by 1.1% and 0.9%, respectively, while manufacturing inventories were unchanged. Besides, sentiment also got boost as technology shares rallied, offsetting some of the gloom from Boeing Company's woes after the second deadly crash in about six months involving the company's 737 Max 8 aircraft. Dow Jones Industrial Average surged 200.64 points or 0.79 percent to 25650.88, S&P 500 rose 40.23 points or 1.47 percent to 2783.30 and Nasdaq was up by 149.92 points or 2.02 percent to 7558.06.

 

Crude oil futures ended higher with gains of over one percent on Monday on reports that Saudi Arabia planned to extend efforts to reduce crude exports. Saudi Arabia planned to cut its oil exports to below 7 million barrels a day, while keeping its output well below 10 million barrels a day, in an attempt to alleviate a glut of supply. Besides, the Joint Ministerial Monitoring Committee (JMMC) which monitors compliance with output reductions is scheduled to meet in Azerbaijan on March 18. Organization of the Petroleum Exporting Countries' (OPEC's) next scheduled meeting will be held on April 17-18. Reports also say the group will again meet in late June to discuss production levels. Benchmark crude oil futures for April surged 72 cents or 1.3 percent to settle at $56.79 a barrel on the New York Mercantile Exchange. May Brent crude gained 84 cents or 1.3 percent to settle at $66.58 a barrel on London's Intercontinental Exchange.

 

Indian rupee ended stronger against dollar on Monday, due to increased selling of the American currency by exporters and banks. Local investors cheered the Economic Affairs Secretary Subhash Chandra Garg expressed confidence that fiscal deficit target of 3.4 per cent for 2018-19 would be met as shortfall in indirect tax collection would be compensated by lower expenditure. Traders also remained optimistic with Commerce and Industry minister Suresh Prabhu's statement that the government has set a target of attracting $100 billion in foreign direct investments over the next two years. The minister said the government is conducting a sector analysis for FDI investments and is preparing suitable policies which will help in bringing foreign funds. Also, fresh capital inflows and an encouraging rally in domestic equities revived forex market sentiment. On the global front, dollar edged up on Monday, as investors took cover in the currency amid global growth concerns, while sterling extended its decline on an uncertain outlook over Britain's exit from the European Union. Finally, the rupee ended at 69.89, 25 paise stronger from its previous close of 70.14 on Friday.

 

The FIIs as per Monday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 5172.97 crore against gross selling of Rs 4046.61 crore, while in the debt segment, the gross purchase was of Rs 4913.99 crore with gross sales of Rs 830.68 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.83 crore against gross selling of Rs 0.37 crore.

 

The US markets settled higher on Monday as the technology shares led a broad-based rebound, offsetting some of the gloom from Boeing Company's woes after a deadly airline crash in Ethiopia. Asian markets are trading in green on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement. Indian markets ended higher on Monday with gains of over a percent each and posted their biggest gain in nearly six months, amid sustained foreign fund inflow coupled with buying across-the-board, barring IT counter. Today, the markets are likely to make gap-up opening following firm trade in global markets. Investors will be looking ahead to macroeconomic data such as Index of Industrial Production (IIP) and Consumer Price Index (CPI) to be announced after the market hours. Some support may come with a report that in a major overhaul of oil and gas exploration permits, the government will not charge any share of profit on hydrocarbons produced from less explored areas as it looks to attract the elusive private and foreign investment to raise domestic output. Traders may take note of report that the Reserve Bank of India (RBI) board, which included the present Governor Shaktikanta Das as a director, had warned of short-term negative impact of demonetisation on the country's economic growth and observed that the unprecedented move will not have any material impact on tackling the black money menace. Meanwhile, the Goods and Services Tax (GST) Council is scheduled to meet on March 19 to finalise guidelines to support the changed tax rate structure for underconstruction houses. Besides, the National Stock Exchange (NSE) has launched weekly options on the NIFTY IT Index. The NIFTY IT index options are already available for three monthly expiration cycle. There will be some buzz in the banking sector stocks with Care Ratings' report that the average liquidity deficit of Indian banking system for the week-ended March 8 moderated to a four-week low at Rs 30,664 crore. It added that the easing of liquidity deficit can be attributed to an increase in foreign inflows in domestic markets and OMO purchases of government securities by RBI. There will be some reaction in solar energy sector related stocks with Crisil Research's report that India's target of adding 100 GW of solar project capacity by 2022 is facing headwinds as lack of clarity on policy, frequent bid cancellation and safeguard measures have negatively impacted the sector. Also, there will be reaction in housing finance company's stocks with global rating agency Moody's report that the National Housing Bank's proposed guidelines to tighten the capital adequacy and leverage norms is credit positive for housing finance company (HFCs) but will not address their issues regarding the key credit risk, funding and liquidity.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

11,168.05

11,091.63

11,212.68

BSE Sensex

37,054.10

36,818.26

37,198.06

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Tata Motors

256.70

181.85

180.40

183.95

NTPC

250.06

151.40

147.17

157.97

SBI

229.31

287.35

284.23

289.73

Yes Bank

211.90

236.30

232.60

239.00

Coal India

199.31

243.40

237.43

247.18

 

  • Cipla's wholly owned subsidiary -- Goldencross Pharma has completed the closing of Wellthy Therapeutics, transaction representing an acquisition of 11.71% stake in Wellthy on fully diluted basis. 
  • Tata Steel has inaugurated the newly built High Performance Centre at the JRD Sports Complex. 
  • Tata Motors has strengthened its Mobile Service Vans program to improve after-sales relations with its customers. 
  • TCS has launched a new version of the Metadata Registry and Transformation Platform.
News Analysis