A session after displaying a
distressing performance, Indian benchmark indices have managed to eke out
moderate gains on Wednesday, tracking positive trade in global markets after
focus shifted from geopolitical tensions around North Korea to minutes from the
US Federal Reserve's last policy meeting. Sentiments got a boost after India's
services PMI rose to an eight month high in June at 53.1 as against 52.2 in May
of 2017. This was also the fifth consecutive month of expansion as business
environment for services sector in the country continued to improve. Some
support also came with the report that global & domestic private equity
funds have pumped in around $11.3 billion in the country for the first half of
the current year ending June 30, making it the record highest foreign direct
investment into the country. Adding optimism among investors, an Assocham-APAS
study revealed that with the rollout of the Goods and Services Tax (GST), the
industry alone is expected to contribute $280 billion to India's Gross Domestic
Product (GDP) in the next eight to nine years. According to the chamber, the
GST will enable positive structural changes in the ease of doing business,
which in turn would propel the growth. Finally, the BSE Sensex gained 35.77
points or 0.11% to 31245.56, while the CNX Nifty was up by 24.30 points or
0.25% to 9,637.60.
The US markets closed mostly
higher on Wednesday, while the Dow industrials closed fractionally lower after
the Federal Reserve policy meeting minutes indicated a reduction in the central
bank's economy-boosting balance sheet could begin soon, and technology stocks
rallied amid a disappointing manufacturing report and decline in crude futures.
Federal Reserve policymakers were increasingly split on the outlook for
inflation and how it might affect the future pace of interest rate rises,
according to the minutes of the Fed's last policy meeting on June 13-14
released. The details of the meeting, at which the US central bank voted to raise
interest rates, also showed that several officials wanted to announce a start
to the process of reducing the Fed's large portfolio of Treasury bonds and
mortgage-backed securities by the end of August but others wanted to wait until
later in the year. On the economy front, US factory orders sank 0.8% in May
following a smaller decline in April. Previously the US Census had said orders
for durable goods fell by 1.1%. Inventories rose 0.2% for the 10th gain in the
past 11 months. And shipments increased a revised 1% in May. The Nasdaq gained
40.8 points or 0.67 percent to 6,150.86, S&P 500 edged higher by 3.53
points or 0.15 percent to 2,432.54, while the Dow Jones Industrial Average lost
1.1 points or 0.01 percent to 21,478.17.
Crude oil futures slumped on
Wednesday, ending their longest bull-run in more than five years as the floor
trading resumed after a holiday, amid signs that OPEC's supply quota plan may
be falling apart. A report showed that oil exports by the Organization of the
Petroleum Exporting Countries climbed for a second month in June. OPEC exported
25.92 million barrels per day (bpd) in June, up 450,000 bpd from May and 1.9
million bpd more than a year earlier. Benchmark crude oil futures for August
delivery plunged by $1.94 or 4.12 percent to $45.13 on the New York Mercantile
Exchange. In London, Brent crude for August delivery ended down by $1.82 or 3.7
percent at $47.79 a barrel on the ICE.
Indian
rupee ended weaker against the US dollar on Wednesday, due to increased demand
of the greenback from the importers and the banks. Investors failed to get any
support with the report that India's services PMI rose to an eight month high
in June at 53.1 as against 52.2 in May of 2017. This was also the fifth
consecutive month of expansion as business environment for services sector in
the country continued to improve. Moreover, the domestic currency was also
weighed down by dollar's strengthen against some other currencies overseas.
However, positive gains in equity market arrested further losses. On the global
front, US dollar inched higher against yen on Wednesday but struggled to make
progress against euro as investors awaited minutes from the Federal Reserve's
latest meeting and US jobs data later in the week. Finally, the rupee ended at
64.78, 5 paise weaker from its previous close of 64.73 on Tuesday.
The
FIIs as per Wednesday's data were net sellers in equity and debt segments both.
In equity segment, the gross buying was of Rs 3759.80 crore against gross
selling of Rs 4918.33 crore, while in the debt segment, the gross purchase was
of Rs 159.68 crore with gross sales of Rs 1016.95 crore.
The US markets made another mixed
closing in the last session after a lackluster performance, as many traders
remained away from their desks after the market holiday. Also, there was some
cautiousness with the Federal Reserve plans to reduce their bloated balance
sheet but failing to provide a specific timeline to begin the process. The
Asian markets too have made a mixed start and some of the indices are down by
about a quarter percent, with investors digesting details from the Federal
Reserve's most recent meeting, ahead of a G-20 summit and a key U.S. jobs
report. Japanese market has led the losers, as the yen strengthened. The Indian
markets after a choppy trade managed a modestly positive close in the last
session. Today, the start is likely to be muted lacking any major supportive
factor and amid sluggish global cues. There will be some concern in the market
with Economist and Nobel laureate Paul
Krugman's warning that India has a very narrow window to pursue its development
agenda as the era of hyperglobalisation is over and global trade will at best
grow slower or at worst shrink. Krugman also came down heavily on Indian
policymakers for pursuing a tight monetary and fiscal policy. Markets however
may get some support in latter trade with an ASSOCHAM study stating that
Industry is expected to contribute $ 280 billion to India's GDP in eight to
nine years due to positive fallout of the Goods and Services Tax (GST) as
structural changes in the ease of doing business will propel growth. Also,
Finance Minister Arun Jaitley has said that despite the anticipation of initial
disruptions on account of the Goods and Services Tax (GST), the rollout of the
new indirect tax regime from July 1 was smooth and without any significant
glitches. There will be some buzz in the power sector stocks, as the Power
Ministry has launched a portal for optimum utilisation of domestic coal by
Independent Power Producers. Producers can reduce power costs by 10 paisa per
unit through rationalising of coal supply made possible through the e-bid
portal.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9637.60
|
9615.42
|
9651.72
|
BSE Sensex
|
31245.56
|
31187.35
|
31294.21
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Vedanta
|
122.13
|
261.40
|
256.63
|
264.13
|
ITC
|
119.78
|
331.05
|
328.25
|
335.85
|
SBI
|
100.49
|
274.90
|
272.97
|
276.22
|
ICICI Bank
|
69.59
|
292.85
|
289.65
|
294.90
|
Bank of Baroda
|
66.17
|
160.80
|
158.73
|
162.63
|
Mahindra & Mahindra has revised prices of its vehicles pursuant to the implementation of GST, with immediate effect.
Yes Bank has inked MoU with Santander UK plc to help boost UK- India trade and local business networking opportunities.
NTPC is planning to build three new plants with a combined capacity of more than 5 GW, nearly double the capacity of those currently being phased out.
Lupin has launched its Moxifloxacin Hydrochloride Ophthalmic solution USP, 0.5% (base) having received an approval from the USFDA earlier.