Bulls tightened their grip on
Dalal Street, with frontline gauges extending their record hitting streak for
fourth straight session with Sensex conquering 32,000 mark, while Nifty settled
just shy of 9,900 mark. Sentiments remained up-beat throughout the session and
markets traded with traction, as tepid data of industrial output coupled with
record low inflation figures have rekindled hopes of a rate cut when the RBI
reviews its monetary policy on August 2. Industrial output growth of India
slowed down to 1.7% in the month of May 2017, as compared to 8% in the same
month last year and 3.1% in April 2017, mainly due to poor performance of
mining and manufacturing, while India's retail inflation hit a record low of
1.54% in June 2017, down from 2.18% in May and 5.77% in June last year. June's
retail inflation was lowest since the government began issuing data based on
the consumer price index (CPI) in 2012. Some support to the markets also came
with rating agency Fitch's report that the global sovereign credit cycle is
likely to turn less negative in 2017 as the global GDP growth forecast for 2017
and 2018 had improved. Traders also took some encouragement with report that
India's overseas shipments to top 10 destinations worldwide which include the
countries like US, Japan, Hong Kong and UAE have gained strength in the passing
financial year. According to the industry body, the PHD Chamber of Commerce and
Industry (PHDCCI), the country's share of exports to top 10 destinations grew
to 51.6% in the financial year 2016-17 from 49% in the financial year 2013-14.
Finally, the BSE Sensex surged 232.56 points or 0.73% to 32,037.38, while the
CNX Nifty was up by 75.60 points or 0.77% to 9,891.70.
The US markets closed higher on
Thursday, with the Dow closing at a record for the 24th time in 2017, as gains
in the financial sector helped the broader market book modest gains ahead of a
roster of corporate results from the US's biggest banks. Thursday trading
action came as Federal Reserve Chairwoman Janet Yellen delivered a second day
of testimony on Capitol Hill, reiterating dovish comments that appeared to
bolster investor confidence on Wednesday. Yellen told a Senate Banking
Committee that the federal-funds rate wouldn't need to rise significantly to
get to a neutral policy stance. On the economy front, the number of Americans
who applied for unemployment benefits fell slightly in early July, reflecting
an extremely low level of layoffs that has become the norm as an economic
recovery stretches into its ninth year. Initial jobless claims in the period
running from July 1 to July 8 dropped by 3,000 and stood to a seasonally
adjusted 247,000. Initial claims count people who apply for benefits after
losing their jobs. The Dow Jones Industrial Average added 20.95 points or 0.10
percent to 21,553.09, the Nasdaq added 13.27 points or 0.21 percent to
6,274.44, while S&P 500 edged higher by 4.58 points or 0.19 percent to
2,447.83.
Crude oil futures shrugging off
the data showing Opec compliance with production cuts fell to its lowest level
in six months, moved higher on Thursday, as data showed an uptick in global
demand for oil. According to the International Energy Agency (IEA) supply of
oil rose by 720,000 barrels a day (bpd) in June, nearly half - 340,000 barrels
per day - of the uptick in supply came from Opec countries. The IEA said that
Saudi Arabia increased its flows, as
well as Libya and Nigeria who are not part of the production freeze. Benchmark
crude oil futures for August delivery added $0.59 or 1.3 percent to $46.08 on
the New York Mercantile Exchange. In London, Brent crude for August delivery
ended up by $0.63 at $48.37 a barrel on the ICE.
Indian
rupee ended stronger against dollar for the second straight day on Thursday, on
increased selling of the US currency by exporters and banks. Traders remained
optimistic as sluggish industrial output numbers bolstered hopes of a rate cut
in August. Also, with a sustained dip in food prices, India's retail inflation
hit a record low of 1.54% in June 2017, down from 2.18% in May and 5.77% in
June last year . Moreover, dollar's weakness against other currencies overseas,
foreign fund inflows and good going in the local equity markets, mainly aided
the currency's appreciation. On the global front, dollar was lower against most
of the other major currencies on Thursday after comments from Federal Reserve
Chair Janet Yellen on inflation spurred investors to lower their expectations
on the pace of US rate increases. Finally, the rupee ended at 64.44, 9 paise
stronger from its previous close of 64.53 on Wednesday.
The
FIIs as per Thursday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4631.63 crore against gross selling
of Rs 4084.63 crore, while in the debt segment, the gross purchase was of Rs
2640.25 crore with gross sales of Rs 690.10 crore.
The US markets managed another
positive close in last session despite a lackluster trade, as traders seemed
reluctant to make more significant moves ahead of the release of some key
economic data and earnings news. The Asian markets have made a mixed start and
some of the indices are marginally in red, though others are heading for strongest
week since March. The Indian markets rallied in last session to close at fresh
record highs, on rate cut hopes by the RBI in its upcoming policy review on
lower inflation and weak industrial production data. Today, the start is likely
to be in green but a bit cautious and traders will be concerned with
disappointing earnings by the Tata Consultancy Services, India's largest
software services exporter whose quarterly profit fell 10 percent sequentially
while revenues declined 0.2 percent. The whole IT pack will be in focus as
another IT bellwether Infosys will be announcing its numbers today. All eyes
will be on a high-profile meeting chaired by Prime Minister Narendra Modi to
review the country's foreign direct investment policy, where further easing of
restrictions may also be discussed.
Traders will also be eyeing the inflation data based on wholesale price
index (WPI) for June slated to be announced later in the day. There will be some buzz in the insurance
space on reports that HDFC Life Insurance may call off its proposed takeover of
the Max group's life insurance business as the two have not been able to arrive
at a mutually agreeable alternative structure for the transaction.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9891.70
|
9864.35
|
9908.15
|
BSE Sensex
|
32037.38
|
31922.83
|
32121.72
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Axis Bank
|
222.32
|
511.90
|
507.65
|
516.50
|
ITC
|
174.92
|
338.75
|
333.33
|
341.83
|
ICICI Bank
|
137.47
|
297.90
|
295.47
|
299.92
|
Hindalco
|
119.02
|
204.70
|
199.73
|
207.63
|
ONGC
|
90.73
|
158.90
|
156.97
|
162.47
|
M&M has launched Jeeto Minivan in domestic market on July 13, 2017 to redefine last mile transportation.
SBI has cut the National Electronic Funds Transfer and Real Time Gross Settlement charges up to 75%, with effect from July 15, 2017.
Tata Steel has commissioned a mine air cooling system, first of its kind in the Eastern India, at its Digwadih colliery in Dhanbad district to rescue the miners working in a depth of more than 400 meters.
TCS has reported 10.1% fall in its net profit at Rs 5,950 crore for Q1FY18 as compared to Rs 6,318 crore for Q1FY17.