Extending previous session's
northward journey, Indian equity benchmarks displayed spirited performance on
Tuesday, with frontline gauges ending near their crucial 35,700 (Sensex) and
10,850 (Nifty) levels. The markets' mood remained up-beat throughout the day
and benchmarks, after a positive opening, fervently gained from strength to
strength, as investors continued hunt for fundamentally strong stocks.
Sentiments remained optimistic since beginning with report stating 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. Market participants took some
encouragement with a private report stating that China and Russia have backed
India's move to revive talks at the World Trade Organization (WTO) to
strengthen global norms to protect traditional knowledge from bio piracy and
reckless patenting by corporates. Markets extended gains in noon deals as US
President Donald Trump and North Korea's leader Kim Jong Un signed documents that
acknowledge the progress of the talks and pledge to keep momentum going, after
their summit in Singapore. Building up of positions by participants ahead of
release of IIP and inflation data also influenced trading sentiments. Further,
some support also came with finance ministry official's statement that the
government is likely to launch a Rs 500-crore credit enhancement fund next
month to facilitate infrastructure investments by insurance and pension funds.
Adding some optimism, the Union government has formed a new committee under the
chairmanship of former Chief Statistician Prof. T.C.A Anant to bring more
transparency in employment related data releases. Finally, the BSE Sensex
gained 209.05 points or 0.59% to 35,692.52, while the CNX Nifty was up by 55.90
points or 0.52% to 10,842.85.
The US markets ended the choppy
day of trade mostly in green terrain on Tuesday, as traders looked ahead to
monetary policy announcements by the Federal Reserve and the European Central
Bank. The Fed is widely expected to raise interest rates by 25 basis points on
Wednesday, while the ECB has indicated it will discuss ending its bond
purchasing program at its meeting on June 14. Meanwhile, traders largely shrugged
off the historic summit between President Donald Trump and North Korean leader
Kim Jong Un. Following the meeting, Trump and Kim signed a joint statement
pledging to work together to build a lasting and stable peace regime on the
Korean Peninsula. The statement said Kim reaffirmed his firm and unwavering
commitment to complete denuclearization of the Korean Peninsula, while Trump
committed to provide security guarantees to North Korea. The U.S. and North
Korea also committed to hold follow-on negotiations led by the Secretary of
State Mike Pompeo and a relevant high-level North Korean official. On the
economic front, the Labor Department released a report showing another modest
increase in consumer prices in the month of May. The Labor Department said its consumer
price index rose by 0.2 percent in May, matching the increase seen in April as
well as economist estimates. Excluding food and energy prices, core consumer
prices still increased by 0.2 percent in May after inching up by 0.1 percent in
April. The Nasdaq surged 43.87 points or 0.57 percent to 7703.79 and the
S&P 500 was up by 4.87 points or 0.17% to 2786.85, while the Dow Jones
Industrial Average was down marginally by 1.58 points or 0.01 percent to
25320.73.
Extending previous session
northward journey, Crude oil futures ended mixed on Tuesday, with U.S. prices
ending higher for second straight session, however global benchmark Brent crude
finishing lower. U.S. prices got some support ahead of data that are expected
to show a weekly fall in domestic crude inventories, while Brent crude declined
after a monthly report from the Organization of the Petroleum Exporting
Countries (OPEC) revealed higher production from the cartel, led by swing
producer Saudi Arabia. Meanwhile, OPEC oil production increased by 35,000
barrels a day in May, month-on-month, to average 31.87 million barrels a day.
Output in Saudi Arabia jumped by 85,500 barrels a day but was partly offset by
production outages in Nigeria, Venezuela and Libya. Benchmark crude oil futures
for July delivery gained 26 cents or 0.40 percent to settle at $66.36 a barrel
on the New York Mercantile Exchange. August Brent crude lost 58 cents or 0.80%
at $75.88 a barrel on London's Intercontinental Exchange.
Indian Rupee ended weaker against
the American currency due to increase in demand for dollar by banks and
importers. Meanwhile, investors await crucial economic data on consumer
inflation and industrial output for direction. Besides, Rupee sentiments were
pessimistic 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. On the global front, dollar appreciated as
US President Donald Trump and North Korean leader Kim Jong Un signed a
comprehensive deal at a historic summit aimed at the denuclearisation of the
Korean peninsula. Investors now wait for a likely interest rate hike by the US
Federal Reserve. Finally, the rupee ended at 67.49, 6 paise weaker from its
previous close of 67.43 on Monday.
The FIIs as per Tuesday's data were
net sellers in equity and debt segments both. In equity segment, the gross buying
was of Rs 4011.09 crore against gross selling of Rs 5205.52 crore, while in the
debt segment, the gross purchase was of Rs 389.87 crore with gross sales of Rs 1342.83
crore. Besides, in the hybrid segment, the gross selling was of Rs 0.51 crore
against no buying.
The US markets ended mostly
higher on Tuesday, after President Donald Trump and North Korea leader Kim Jong
Un sign an agreement aimed at establishing a peace regime on the Korean
peninsula. Asian markets trading lower in early deals as investors shifted
their focus from the recently concluded U.S.-North Korea summit to the
conclusion of the Federal Reserve's June meeting later in the day. Indian
equity benchmarks ended higher on Tuesday with underlying sentiment supported
by positive global cues ahead of retail inflation and industrial output data,
due later in the day. Today, the markets are likely to make pessimistic start
amid mixed global cues. Sentiments may remain dampen on report that India's
retail inflation hit a four-month high after jumping to 4.87 percent in May
from April's 4.58 percent driven by costlier food and fuel. Retail inflation,
measured by Consumer Price Index (CPI), had fallen to 2.18 percent in May 2017.
However, traders may get some support later in the day with report that India's
industrial production grew 4.9 percent in April, as compared with 4.4 percent
jump in March. The factory output index growth rate moderated in March after
consistently being above 7 percent between November and February. It expanded 6
percent a year ago. Meanwhile, markets regulator Sebi proposed to allow direct
listing of Indian companies on overseas bourses and of foreign firms on Indian
exchanges, while setting up an expert panel to look into the details.
Currently, Indian companies can list their shares through depository receipts
abroad, while foreign companies need to go through the Indian Depository
Receipt route for listing of equities.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,842.85
|
10,802.65
|
10,869.80
|
BSE Sensex
|
35,692.52
|
35,533.37
|
35,797.38
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
313.58
|
282.85
|
276.43
|
286.83
|
ICICI Bank
|
142.58
|
287.40
|
285.38
|
289.28
|
Yes Bank
|
98.51
|
332.20
|
329.62
|
336.37
|
Vedanta
|
96.25
|
245.50
|
243.48
|
247.38
|
Lupin
|
89.90
|
855.00
|
823.37
|
874.27
|
Larsen & Toubro's construction arm -- L&T Construction will construct an iconic bridge across the river Krishna at Amaravati in the state of Andhra Pradesh.
Reliance Industries' subsidiary -- Reliance Jio Infocomm -- has become India's third-largest telecom operator by revenue market share.
Tata Consultancy Services has expanded its agreement with M&G Prudential, the UK and European savings and investments business of Prudential plc.
Sun Pharmaceutical Industries has received establishment inspection report (EIR) from the US health regulator for its Halol facility in Gujarat.