Equity bourses bounced back on
last trading day of the week, with Sensex and Nifty reclaiming their crucial
psychological levels of 39,000 and 11,750, respectively. The markets made a firm
start of the day, aided by the Reserve Bank of India's (RBI) latest data report
that bank credit rose by 14.19% to Rs 96.45 lakh crore, while deposits grew
10.60% 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. Adding comfort among the investors, RBI Governor
Shaktikanta Das said that the country's apex bank is strengthening its
surveillance framework in the face of growing significance of FinTech
innovations and their interface with the financial sector. He said that recent
developments in FinTech have given a fresh impetus to financial inclusion
process in the country and policy efforts have been directed in recent years to
put in place a state of the art national payments infrastructure and technology
platform. Markets rallied further in late hours to settle near their intraday
high points, on the back of heavy buying done by traders. Trading sentiments on
the street got improved with IBBI Chairperson M S Sahoo's statement that
resolution plans under IBC have yielded 200 per cent of liquidation value for
creditors in addition to rescuing viable firms. He also noted that this is
significantly better as compared to the previous regime which yielded a
recovery of 25 per cent for creditors through a process which took about five
years and entailed a cost of 9 per cent. Markets participants also remained
positive with a private report stating that private equity (PE) and venture
capital (VC) investments hit an all-time high of $7 billion in March, as
high-voltage action by global investors like Canada's Brookfield and
Singapore's GIC on street continues unabated despite the ongoing general
elections. Finally, the BSE Sensex gained 336.47 points or 0.87% to 39,067.33,
while the CNX Nifty was up by 112.85 points or 0.97% to 11,754.65.
The US markets ended marginally
higher on Monday as traders seemed reluctant to make more significant moves
ahead of the announcement of the Federal Reserve's latest monetary policy
decision on Wednesday. The Fed is widely expected to leave interest rates
unchanged, although the accompanying statement and Fed Chairman Jerome Powell's
subsequent press conference are still likely to attract attention. Traders are
also likely to keep a close eye on the Labor Department's monthly jobs report
scheduled to be released on Friday. Street expects the report to show an increase
of about 180,000 jobs in April compared to the addition of 196,000 jobs in
March. The unemployment rate is expected to hold at 3.8 percent. Besides,
reports on consumer confidence, pending home sales, and manufacturing and
service sector activity may also impact trading in the coming days. On the
economic front, a report released by the Commerce Department showed a smaller
than expected uptick in US personal income in the month of March, although the
report also showed a significant increase in personal spending during the
month. The Commerce Department said personal income inched up by 0.1 percent in
March after edging up by 0.2 percent in February. Street had expected income to
climb by 0.4 percent. Disposable personal income, or personal income less
personal current taxes, crept up by less than a tenth of a percent in March
after ticking up by 0.1 percent in February. Meanwhile, the report said
personal spending jumped by 0.9 percent in March after inching up by 0.1
percent in February and rising by an upwardly revised 0.3 percent in January.
The Commerce Department provided new data for both February and March in this
month's report due to the impact of the recent government shutdown. Dow Jones
Industrial Average gained 11.06 points or 0.04 percent to 26554.39, Nasdaq
added 15.45 points or 0.19 percent to 8161.85 and S&P 500 was up by 3.15
points or 0.11 percent to 2943.03.
Crude oil futures ended
marginally higher on Monday. However, Brent crude settled lower on uncertainty
surrounds the Organization of the Petroleum Exporting Countries' (OPEC's) next
move in the wake of US President Donald Trump's latest call on the Saudis and
their allies to boost crude production. The Saudis may have some difficulty in
finding an incentive to raise output. The Saudis need an oil price of about $85
a barrel to balance its budget this year, up from a forecast of $73 in
September. Benchmark crude oil futures for June gained 20 cents or 0.3 percent
to settle at $63.50 a barrel on the New York Mercantile Exchange. However, June
Brent crude declined 11 cents or 0.2 percent to settle at $72.04 a barrel on
London's Intercontinental Exchange.
Reversing its two-session fall, the rupee bounced back to
end higher against the US currency on Friday, on persistent selling of the
American currency by exporters. Sentiments were optimistic 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. The dollar
losing muscle against other currencies overseas along with an encouraging rally
in domestic equities too supported the rupee recovery momentum. On the global
front, euro hovered near its weakest level since May 2017 on Friday as traders
waited to see whether United States GDP numbers due out later will reinforce
signs of economic strength and send the dollar surging even higher. Finally,
the rupee ended at 70.02, 23 paise stronger from its previous close of 70.25 on
Thursday.
The FIIs as per Friday'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 10352.51 crore against gross
selling of Rs 6497.90 crore, while in the debt segment, the gross purchase was
of Rs 664.94 crore with gross sales of Rs 812.03 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.97 crore against gross selling of Rs 2.35
crore.
The US markets ended marginally
higher on Monday buoyed by upbeat consumer spending data and a largely positive
earnings. Asian markets are trading mostly lower on Tuesday as investors await
a US Federal Reserve policy decision for clues of whether it will continue to
take a patient approach to interest rate policy. Indian markets before going
for long weekend settled Friday's trading session in green territory, with
gains of around a percent each, on the back of rally in metal banking and Oil
& Gas stocks amid easing global crude oil prices. Markets remain closed on
Monday on account of Lok Sabha Elections 2019 in Maharashtra. Today, the start
of last trading day of the month is likely to be weak amid lackluster cues from
Asian peers. There will be cautiousness with the India Meteorological
Department's (IMD) statement that pre-monsoon rainfall from March to April, a
phenomenon critical to agriculture in some parts of the country, has recorded
27 per cent deficiency. The IMD recorded 43.3 millimetres of rainfall across
the country from March 1 to April 24 as against the normal precipitation of
59.6 millimetres. This was 27 per cent less of the Long Period Average (LPA).
Traders will also be concerned about a private report stating that the decline
in economic growth momentum in October-December quarter of FY19 is likely to
continue. As per the report, subdued consumption demand and election related
uncertainty is expected to weigh on India's industrial production. However,
traders may take some support later in the day with a report that foreign
investors were net buyers in the Indian capital markets for the third straight
month in April, pouring in Rs 17,219 crore on favourable macroeconomic
conditions and ample liquidity. Some support may also come with union minister
Suresh Prabhu stating that India is working on district-based developmental
model to achieve aggregate growth. For this, six districts have been selected
in different parts of the country. Meanwhile, India has notified the
inter-governmental agreement with the US for exchange of country-by-country
(CbC) reports on multinational companies regarding income allocation and taxes
paid in order to help check cross-border tax evasion. Besides, the Model Code
of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance
of a revised framework for resolution of stressed assets by the Reserve Bank
and the guidelines are expected to be announced before May 23. There will be
lots of earnings reaction based on the performance of the companies.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,754.65
|
11,689.97
|
11,791.12
|
BSE Sensex
|
39,067.33
|
38,854.05
|
39,191.88
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
485.24
|
237.20
|
232.75
|
241.00
|
Tata Steel
|
381.81
|
545.25
|
524.62
|
556.82
|
Tata Motors
|
260.38
|
215.60
|
212.43
|
220.33
|
Axis Bank
|
232.94
|
759.90
|
749.72
|
767.62
|
SBI
|
149.88
|
312.50
|
308.23
|
315.13
|
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