Monday turned out to be a
disappointing day of trade for Indian equity benchmarks, as frontline gauges
failed to hold initial jubilation and ended with marginal gains as traders
booked most of their early gains ahead of the outcome of a historic meeting
between the US President Donald Trump and the North Korean leader Kim Jong Un.
Markets gained strength after making flat-to-positive start, as traders took
some encouragement with CII's statement that Industry is expecting the GDP to
grow by close to 8% over the next couple of years, as strong reforms process
and fiscal prudence have laid a solid foundation for growth. Markets extended
northward journey in noon deals as some support came with report that foreign
direct investment (FDI) in India increased to $61.96 billion in 2017-18. FDI
inflows stood at $60 billion in the previous fiscal. During the four years of
the BJP government, foreign inflows jumped to $222.75 billion from $152 billion
in the previous four-year period. Adding to the optimism, Commerce Minister
Suresh Prabhu said that India's GDP growth is likely to cross 8% in the next
two years and the government is taking a number of steps including formulation
of a new industrial policy to double the economy's size to $5 trillion in 7-8
years. Further, investors also took some support with a report highlighting
that Central Board of Indirect Taxes and Customs (CBIC) cleared over Rs 7000
crore worth Goods and Services Tax (GST) refunds of exporters during the
initial phase of the special refund drive undertaken by the authorities.
However, market participants pared most of their initial gains as sentiments
turned pessimistic, as anxiety spread on the street with Former finance
minister P Chidambaram's statement that state of the economy was bad in the
country due to the wrong policies of the NDA government and tyres of three
(Exports, Private Investment, Private Consumption) of the four wheels on which
the economy rides were punctured. Sentiments also weighed down on report that
annual consumer price inflation (CPI) likely to increase at 4.83% in May, the
highest since January and above April's 4.58%. Finally, the BSE Sensex gained
39.80 points or 0.11% to 35,483.47, while the CNX Nifty was up by 19.30 points
or 0.18% to 10,786.95.
The US markets ended higher for
second straight session on Monday, as investors shrugged off concerns over a
tumultuous G-7 meeting over the weekend at which President Donald Trump lashed
out at US allies. President Trump and his administration escalated criticism of
Canadian Prime Minister Justin Trudeau and international trade over the weekend
at the annual G-7 summit that took place in Quebec, Canada. The conclusion of
the two-day summit, where Trump met with leaders from Europe and Canada,
resulted in the US incumbent refusing to endorse the joint G-7 statement that
called for a reduction of tariffs - sparking tensions between him and fellow
G-7 leaders. Wall Street also prepared for the hotly anticipated meeting
between Trump and North Korea leader Kim Jong Un in Singapore, set to occur on
Tuesday. Besides, investors focus now shifted towards central-bank meetings
this week. The Federal Reserve, led by Chairman Jerome Powell, is expected to
raise interest rates after its two-day meeting that begins Tuesday, while
European Central Bank policy makers are expected to announce the timing of a
reduction of its crisis-era asset-purchase initiative on Thursday. The Dow
Jones Industrial Average gained 5.78 points or 0.02 percent to 25,322.31, the
Nasdaq surged 14.41 points or 0.19 percent to 7,659.92 and the S&P 500 was
up by 2.97 points or 0.11% to 2782.00.
Crude oil futures edged higher on
Monday, getting a lift from expected supply disruptions in Iran and Venezuela,
even after a report of rising crude output from Saudi Arabia ahead of a much-anticipated
producer meeting later this month. The most influential member of the
Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia, had
begun to increase its output after two years of leading efforts to curtail
global output, with the kingdom boosting production in recent weeks by more
than 100,000 barrels a day. That has raised Saudi overall output to about 10
million barrels a day. Benchmark crude oil futures for July delivery gained 36
cents or 0.60 percent to settle at $66.10 a barrel on the New York Mercantile
Exchange. August Brent crude settled flat at $76.46 a barrel on London's
Intercontinental Exchange.
Indian rupee appreciated against
dollar on Monday, on increased selling of American currency by exporters and
banks. Weak dollar against other major currencies pushed the rupee higher. Some
support came with Commerce Minister Suresh Prabhu's statement that India's GDP
growth is likely to cross 8% in the next two years and the government is taking
a number of steps including formulation of a new industrial policy to double
the economy's size to $5 trillion in 7-8 years. Rupee sentiments remained
optimistic with Assocham stating that reducing taxes is the best solution to
check the spurt in fuel prices which would also tremendously help India on the
exports front. Meanwhile, traders await consumer price index (CPI)-based
inflation and index of industrial production (IIP) data which will be released
on Tuesday. On the global front, US dollar weakened against other currencies
overseas ahead of outcome of a historic meeting between the US President Donald
Trump and the North Korean leader Kim Jong Un. Moreover, global investors will
also look forward to the outcome of monetary policy reviews by the world's
three biggest central banks. Finally, the rupee ended at 67.43, 8 paisa
stronger from its previous close of 67.51 on Friday.
The FIIs as per Monday'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 4916.79 crore against gross selling of Rs 4899.75
crore, while in the In the debt segment, the gross purchase was of Rs 546.91 crore
with gross sales of Rs 1138.05 crore. Besides, in the hybrid segment, the gross
buying was of Rs 0.05 crore against gross selling of Rs 1.95 crore.
The US markets ended mostly
higher on Monday, as traders looked ahead to the historic summit between
President Donald Trump and North Korean leader Kim Jong Un on Tuesday. Asian
markets trading lower in early deals as investors awaited monetary policy
announcements by three major central banks and the most crucial House of
Commons votes on Brexit. Indian equity benchmarks ended with marginal gains as
investors turned cautious ahead of some crucial economic data. Today, the markets
are likely to make pessimistic start as investors await crucial economic data
on consumer inflation and industrial output for direction. India's retail
inflation likely to jump further in May to a four-month high, primarily driven
by a surge in energy prices. Traders may remain concern after President Donald
Trump has taken a swipe at India along with the world's other top economies and
accused New Delhi of charging 100 percent tariff on some of the US' goods, as
he threatened to cut trade ties with countries who are robbing America. Traders
may also remain anxious on report that 1,300 fresh foreign portfolio investors
(FPIs) were registered with Securities and Exchange Board of India (Sebi) in
2017-18 as compared to 3,500 new FPIs were registered in the preceding
financial year. However, traders may get
some solace later in the day with report that the Reserve Bank came out with
draft guidelines on loan system for delivery of bank credit to improve
discipline among larger borrowers enjoying working capital facility from the
banking system. Meanwhile, the recent amendments in the bankruptcy resolution
framework will help reduce timelines, enhance transparency and improve
realisations. There will be buzz in steel and power companies with Union
minister Piyush Goyal's statement that the government was looking at opening
auctions of coal mines to the steel and power sectors, and that a robust
framework was being worked out for commercial mining.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,786.95
|
10,759.15
|
10,832.65
|
BSE Sensex
|
35,483.47
|
35,383.69
|
35,644.04
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
182.19
|
274.00
|
271.97
|
277.22
|
Vedanta
|
172.54
|
246.10
|
244.77
|
247.72
|
ICICI Bank
|
168.76
|
286.40
|
282.95
|
290.10
|
Sun Pharma
|
164.52
|
535.70
|
526.57
|
544.42
|
Tata Motors
|
146.50
|
309.75
|
306.30
|
313.55
|
Larsen & Toubro's construction arm -- L&T Construction -- has won orders worth Rs 2210 crore across two business segments.
State Bank of India will conduct auction of 12 non-performing accounts (NPAs) later this month to recover dues of over Rs 13.25 billion.
Reliance Industries' wholly owned subsidiary -- Reliance Brands has purchased 100% stake in Rhea Retail.
Coal India has reported 31% growth in average realisation from e-auctions during the March quarter and 20% growth for FY18 on higher demand and international prices.