Indian bourses ended Thursday's
session near their day's low points. After a cautious start, the markets traded
firmly for the most part of the day, amid reports that giving relief to
composition scheme taxpayers under the GST, the Finance Ministry has allowed
such businesses to file self-assessed tax return on quarterly basis in a
simplified form. In yet another simplification, the Goods and Services Tax
(GST) Council has added flexibility into the way a company can utilise the
available input tax credit. Any company would now be eligible to use credit
available against paid integrated GST (IGST) to set off tax liabilities of
state GST (SGST) and central GST (CGST) in any proportion and in any order.
Traders also remained positive, as the Finance Ministry introduced several
changes in the electronic way or e-way bill system, ranging from auto calculation
of distance based on PIN codes for generation of e-way bill to barring
businesses from generating multiple e-way bills based on one invoice, as it
seeks to cracks down evasion in the GST framework. However, in the last hours
of the trade, key indices failed to hold their heads in green terrain and
turned negative to end the trading session in red terrain, on the account of
weak cues from global markets. Trading sentiments worsened amid a private
report stating that Indians are becoming increasingly worried about the
economy's condition, with fewer citizens believing that the local economy is
getting better. Adding more worries among market participants, the World Bank
forecasted slowdown in East Asia and Pacific economies in 2019. Growth of East
Asia and the Pacific (EAP) will remain at 6.0 per cent in 2019, which is down
from 6.3 per cent in 2018. Different factors marred slow growth in major
economies which suffered due to economic policies. Finally, the BSE Sensex
slipped 323.82 points or 0.83% to 38,730.86, while the CNX Nifty was down by
84.35 points or 0.72% to 11,641.80.
The US markets ended mostly lower
on Thursday as manufacturing-related sectors logged big losses. A double-digit
decline in 3M Company's stock following disappointing earnings weighed on
markets. However, Nasdaq settled higher with gain of around quarter percent on
the bank of jumps by shares of Facebook (FB) and Microsoft (MSFT). The social
media giant and the software giant surged up by 5.9% and 3.3%, respectively,
after both reported quarterly results that exceeded Street estimates on both
the top and bottom lines. On the economic front, reflecting a significant
rebound in orders for transportation equipment, the Commerce Department
released a report showing new orders for US manufactured durable goods jumped
by much more than expected in the month of March. The Commerce Department said
durable goods orders surged up by 2.7% in March after tumbling by a revised
1.1% in February. Street had expected durable goods orders to climb by 0.8%
compared to the 1.6% slump originally reported for the previous month. The
bigger than expected rebound in durable goods orders came as orders for
transportation equipment shot up by 7.0% in March after plunging by 2.9% in
February. Meanwhile, after reporting first-time claims for US unemployment
benefits at a nearly fifty-year low in the previous week, the Labor Department
released a report showing initial jobless claims rebounded by more than
anticipated in the week ended April 20. The report said initial jobless claims
climbed to 230,000, an increase of 37,000 from the previous week's revised
level of 193,000. Street had expected jobless claims to rise to 200,000 from
the 192,000 originally reported for the previous week. The bigger than expected
increase came after the number of jobless claims in the previous week
represented their lowest level since hitting 182,000 in September of 1969. Dow
Jones Industrial Average declined 134.97 points or 0.51 percent to 26462.08 and
S&P 500 was down by 1.08 points or 0.04 percent to 2926.17, while Nasdaq
gained 16.67 points or 0.21 percent to 8118.68.
Crude oil futures ended lower on
Thursday as traders continued to consider the likelihood that major producers
will increase supply in response to tougher US action against Iran's oil
market. Brent prices gave up earlier gains to settle lower for the first time
in five sessions, with both crude benchmarks marking a retreat from the nearly
six-month highs they reached earlier this week. However, downside remain capped
on private report that Poland and Germany suspended imports of Russian crude
via the Druzhba pipeline, the world's longest oil pipeline, citing
contamination. About 700,000 barrels a day of the pipeline's 1 million-barrel a
day capacity was suspended. Benchmark crude oil futures for June dropped 68
cents or 1 percent to settle at $65.21 a barrel on the New York Mercantile
Exchange. June Brent crude declined 22 cents or 0.3 percent to settle at $74.35
a barrel on London's Intercontinental Exchange.
Extending weakness for the second day, Indian rupee ended
significantly weaker against dollar on Thursday, as good demand for the
greenback from importers and weakness in domestic shares. Traders remained
concerned with a private report stating that Indians are becoming increasingly
worried about the economy's condition, with fewer citizens believing that the
local economy is getting better. Cautiousness also crept in with World Bank
forecasted slowdown in East Asia and Pacific economies in 2019. Growth of East
Asia and the Pacific (EAP) will remain at 6.0 per cent in 2019, which is down
from 6.3 per cent in 2018. Different factors marred slow growth in major
economies which suffered due to economic policies. A broad strengthening of the
US dollar and elevated oil price have put the Indian currency under renewed
pressure. On the global front, euro steadied against the dollar on Thursday
after renewed worries about a growth slowdown in Germany drove it to a 22-month
low overnight, while the yen showed little reaction to a Bank of Japan policy
decision. Finally, the rupee ended at 70.25, 38 paise weaker from its previous
close of 69.86 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 5097.88 crore against gross selling of Rs 4257.78 crore, while
in the debt segment, the gross purchase was of Rs 1385.54 crore with gross
sales of Rs 1103.23 crore. Besides, in the hybrid segment, the gross buying was
of Rs 2.03 crore against gross selling of Rs 4.52 crore.
The US markets ended mostly lower
on Thursday as disappointing earnings reports from several industrial sector
companies weighed on the market, offsetting strong results from Facebook,
Microsoft and others. Asian markets are trading mostly in red on Friday ahead
of the release of US GDP numbers, due later in the day. Indian markets
witnessed bloodbath on the back of heavy sell-off in the dying hours of the
trade amid F&O expiry falling on Thursday. Today, the start of the new
series is likely to be cautious amid mixed cues from the global markets. There
will be some cautiousness with a report that the US placed India on its Priority
Watch List alleging lack of sufficient measurable improvements to its
Intellectual Property (IP) framework on long-standing and new challenges that
have negatively affected American right holders over the past year. The report
said over the past year, India took steps to address intellectual property
challenges and promote IP protection and enforcement. Though, many of the
actions have not yet translated into concrete benefits for innovators and
creators, and longstanding deficiencies persist. India remains one of the
world's most challenging major economies with respect to protection and
enforcement of IP. Meanwhile, the India's crude oil production fell over 4 per
cent in the financial year 2018-19 after aging fields of state-owned Oil and
Natural Gas Corporation (ONGC) and Oil India (OIL) missed the target. The
Ministry of Petroleum and Natural Gas data showed that India produced 34.2
million tonne of crude oil in the fiscal year ended March 31, down from 35.7
million tonne in the previous year. However, traders may take some support
later in the day with the Reserve Bank of India's (RBI) data showing that bank
credit rose by 14.19 percent to Rs 96.45 lakh crore while deposits grew 10.60
percent to Rs 125.30 lakh crore in the first fortnight ended on April 12. In
the year ago fortnight, deposits were at Rs 113.29 lakh crore and advances
stood at Rs 84.46 lakh crore. There will be some buzz in the power sector
stocks with ICRA's report that the power ministry's second auction for
procuring 2.5 GW of thermal power in medium term at a higher tariff of Rs 4.41
per unit compared to Rs 4.24 per unit in the first round is positive for power
producers, but signing of sale agreements with discoms remains crucial. There
will be lots of important earnings announcements too, to keep the markets in
action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,641.80
|
11,578.48
|
11,750.93
|
BSE Sensex
|
38,730.86
|
38,509.15
|
39,107.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ONGC
|
1,342.64
|
168.85
|
166.93
|
170.38
|
Yes Bank
|
716.41
|
237.05
|
231.93
|
246.28
|
SBI
|
308.42
|
306.20
|
303.73
|
310.33
|
NTPC
|
293.55
|
132.90
|
131.68
|
134.73
|
IOC
|
287.73
|
152.70
|
151.22
|
154.82
|
Maruti Suzuki India will increase the price of Baleno RS Petrol variant and Diesel variants with immediate effect.
Bharti Infratel is hoping that merger of the company and Indus Towers would be completed in the next few months, as merger process is on track.
Abu Dhabi National Oil Company has signed a long-term sales agreement with Indian Oil Corporation for its high-quality base oil ADbase.
Vedanta has received environment clearance for the expansion of its oil and gas operation in Rajasthan that would entail an investment of Rs 12,000 crore.