NSE Intra-day chart (29 January 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 30 January 2019
Markets to make cautious start amid mixed global cues

 

Indian equity bourses carried on their weak run on Tuesday, with Sensex and Nifty closing the day below their crucial levels of 35,600 and 10,700, respectively. The markets made a cautious start of the day, tracking other weak Asian markets. Anxiety spread on the street, after the Income Tax Department launched searches at 74 places in Tamil Nadu in connection with a tax evasion probe against some real estate groups and a retail store chain in the state. Investors also took note of a report that the Income Tax Department has confiscated assets worth Rs 6,900 crore till now as part of its action under the anti-benami transactions law. Domestic sentiments remained lackluster throughout the day, even after Finance Minister Piyush Goyal urged public sector banks (PSBs) to step up lending to micro, small and medium enterprises (MSMEs), agriculture and housing sectors and also assured these lenders of all kinds of support. Goyal in its meeting with the heads of PSU banks discussed internal mechanism to resolve cases under the RBI guidelines and within the framework set in the bankruptcy court. However, key indices managed to come off their intraday low points in the last leg of the trade, taking support from the Reserve Bank of India's (RBI) latest data report that foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore. As per data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. Some relief also came after RBI Governor Shaktikanta Das asked PSBs to extend credit while observing prudential norms without getting excessively conservative. He highlighted the importance of PSBs for the economy at all times and especially at the current juncture in helping meet broader economic goals. Finally, the BSE Sensex lost 64.20 points or 0.18% to 35,592.50, while the CNX Nifty was down by 9.35 points or 0.09% to 10,652.20.

 

The US markets ended mostly in red on Tuesday as investors sorted through a fresh batch of earnings reports and awaited clarity from the Federal Reserve on its monetary policy plans. The Federal Reserve's impending monetary policy announcement on Wednesday kept some traders on the sidelines along with the upcoming release of the Labor Department's monthly jobs report on Friday. Traders also continued to express uncertainty about trade talks between the US and China after the Justice Department unsealed sweeping criminal charges against Chinese tech giant Huawei and its chief financial officer Meng Wanzhou. On the economic front, the Conference Board released a report showing a substantial deterioration in consumer confidence in the month of January. The Conference Board said its consumer confidence index slumped to 120.2 in January after tumbling to a revised 126.6 in December. Street had expected the consumer confidence index to fall to 124.3 from the 128.1 originally reported for the previous month. Lynn Franco, Senior Director of Economic Indicators at the Conference Board, noted expectations saw a significant drop due to financial market volatility and the government shutdown. Nasdaq declined 57.40 points or 0.81 percent to 7028.29 and S&P 500 was down by 3.85 points or 0.15 percent to 2640.00, while Dow Jones Industrial Average gained 51.74 points or 0.21 percent to 24579.96.

 

Crude oil futures settled higher on Tuesday on account of the US Treasury's decision to impose sanctions on Venezuela's state-owned oil firm, Petroleos de Venezuela SA. The US Treasury sanctioned Venezuela's oil firm, raising the risk of disruptions to oil supply from the South American nation, home to the world's largest oil reserves. Venezuela's oil firm is also known as PdVSA. The sanctions will result in more than $11 billion in export losses for Venezuela over the next year. Meanwhile, trade tensions between the US and China continue to hang over energy trading, raising expectations for a slowdown in energy demand. Benchmark crude oil futures for March surged $1.32 or 2.5 percent to settle $53.31 a barrel on the New York Mercantile Exchange. March Brent crude gained $1.39 or 2.3 percent to settle at $61.32 a barrel on London's Intercontinental Exchange.

 

Indian rupee ended almost flat against dollar on Tuesday, amid strengthening American currency and rising crude prices. Traders also remained on sidelines ahead of Budget announcements due later this week. However, traders took some support with the Reserve Bank of India's (RBI) latest data report that foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore. As per data, FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value. The RBI said as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018. On the global front, Sterling firmed a touch on Tuesday but held well off recent multi-month highs against the euro and dollar as traders weighed up whether lawmakers would back a key parliamentary amendment that would effectively take a no-deal Brexit off the table. Finally, the rupee ended at 71.11, 1 paise weaker from its previous close of 71.10 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 6429.14 crore against gross selling of Rs 6506.18 crore, while in the debt segment, the gross purchase was of Rs 1132.71 crore with gross sales of Rs 1274.70 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.88 crore against no selling.

 

The US markets ended mostly lower on Tuesday as investors sorted through a fresh batch of earnings reports and awaited clarity from the Federal Reserve on its monetary policy plans. Asian markets were trading mixed on Wednesday as the earnings season rolled on and investors awaited the Federal Reserve's policy meeting. Indian markets made recovery in last leg of trade on the back of short-covering by traders but failed to hold head above water and ended lower for third straight session on Tuesday. Today, the markets are likely to make cautious start amid mixed global cues on US-China trade tiff. However, traders may take some support later in the day with Icra's report that the number of insolvency cases is expected to pile up over the next few quarters, the timely conclusion of cases within the law-mandated 180-270 days can free up as much as Rs 67,000 crore to the system. Traders may also take note of the annual index released by an anti-graft watchdog that India has improved its ranking on a global corruption index in 2018, while its neighbour China lagged far behind. Besides, India Ratings has said income support as a core centrally sponsored scheme is a better option than debt waiver. Meanwhile, Commerce and Industry Minister Suresh Prabhu said that India is optimally leveraging technology to offer various services on digital platforms and is poised to take full advantage of new generation of technological advancements. There will be some reaction in banking sector stocks with SBI in its Ecowrap report stating that Public sector banks (PSBs) would require another Rs 50,000 crore fund infusion in 2019-20 to help enable credit growth of 11 per cent. There will be some buzz in the public sector undertakings (PSUs) stocks with S&P Global Ratings' statement that the Centre's bid to boost its non-debt capital receipts by pushing the cash-rich central PSUs to buy back their own shares has impacted the credit profile of these firms. It said corporate activities that are designed to support the government coffers by PSUs are ‘credit negative' for such entities. There will be some reaction in auto ancillary stocks with report that to promote domestic assembling of electric vehicles, the government lowered customs duty on import of parts and components of such vehicles to 10 to 15 percent. Until now, vehicle parts and components imported for assembly in India attracted import duty of 15 to 30 percent. 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

10,652.20

10,593.78

10,700.48

BSE Sensex

35,592.50

35,400.63

35,759.26

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank

766.51

202.90

195.92

209.67

ZEEL

374.36

377.40

363.93

389.68

ICICI Bank

207.38

346.85

342.10

350.85

Indiabulls Housing Finance

175.22

698.60

649.07

749.07

SBI

174.36

280.60

276.10

285.55

 

  • HPCL's Rs 43,129 crore refinery project in Barmer district of Rajasthan has achieved financial closure with tying up of a Rs 28,753 crore loan from a consortium of lenders.
  •  Power Grid's wholly owned subsidiary--POWERGRID NM Transmission has successfully commissioned the Salem-Madhugiri 765 kV, S/C transmission line on January 29, 2019. 
  • M&M has entered into a partnership with Greaves Cotton to source BS-VI emission norms compliant powertrain solutions. 
  • Tata Motors' wholly owned subsidiary -- JLR has launched a special landmark edition of Discovery Sport priced at Rs 53.77 lakh, ex-showroom. 
News Analysis