Daily Newsletter
NSE Intra-day chart (08 June 2018)
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 11 June 2018
Markets likely to make flat-to-positive start

 

Recovery in last leg of trade helped, Indian equity benchmarks to end almost flat on Friday with frontline gauges holding their crucial 35,400 (Sensex) and 10,750 (Nifty) levels. Markets started the session on a pessimistic note amid sluggish global trend. The sentiments also affected after rupee fell to its one week low against the dollar in the morning trade. Sentiments remained down-beat after Union Minister Dharmendra Pradhan said that with petrol and diesel kept out of the purview of GST, the state owned oil industry is losing Rs 200 billion annually in terms of input credit. Traders also seems to be cautious with Moody's Investors Service's statement that India could prune its capital expenditure to avoid any slippage of its fiscal deficit target of 3.3% of GDP in the current fiscal, but warned any reduction in the excise duty on petroleum products would exert negative pressure on the country's sovereign credit profile. Some anxiety also persist among investors with government identifying over 2.25 lakh companies and 7,191 LLPs which have not filed requisite financial statement for 2015-16 and 2016-17, and they may be struck off during the current financial year. The selling got intensified and markets even went to test their psychological 35,250 (Sensex) and 10,700 (Nifty), but key gauges got strong support near those levels and managed to prune most some of their losses to end with negligible cut. Domestic sentiments got relief with DIPP Secretary Ramesh Abhishek's statement that foreign direct investment in India increased to $61.96 billion in 2017-18. He also said during the four years of the Modi government, foreign inflows jumped to $222.75 billion from $152 billion in the previous four-year period. Market participants get some comfort with industry body Assocham's statement that reducing taxes is the best solution to check the spurt in fuel prices which would also tremendously help India on the exports front. Meanwhile, the International Monetary Fund (IMF) has said addressing the ongoing crisis in the banking sector was important for India to support investment and inclusive growth agenda. Finally, the BSE Sensex slipped 19.41 points or 0.05% to 35,443.67, while the CNX Nifty was down by 0.70 points or 0.01% to 10,767.65.

 

The US markets ended higher on Friday as traders shrugged off tensions between the U.S. and major allies as a meeting of leaders of the Group of Seven industrialized nations got under way in Canada. The summit is expected to focus on trade relations amid the ongoing dispute over President Donald Trump imposing tariffs on steel and aluminum imports from Canada, Mexico, and the European Union. Meanwhile, Trump said he is prepared to head to the meeting, arguing that the U.S. is being treated very unfairly on trade. Trump lashed out at Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron. He described Trudeau as indignant for bringing up the relationship between the U.S. and Canada without mentioning Canadian tariffs on U.S. dairy products. Trump suggested Russia should be included in the meeting of major industrialized countries. On the economic front, the wholesale inventories edged higher in the month of April, while wholesale sales saw a notable increase. The report said wholesale inventories inched up by 0.1 percent in April after rising by a revised 0.2 percent in March. The uptick in inventories matches economist estimates and represents an upward revision from the preliminary reading showing inventories were unchanged. The S&P 500 surged 8.66 points or 0.31% to 2779.03, the Nasdaq gained 10.44 points or 0.14 percent to 7645.51 and the Dow Jones Industrial Average gained 75.12 points or 0.30 percent to 25,316.53.

 

Crude oil futures ended lower on Friday, as energy investors weighed potential outcomes for a meeting of major oil producers later this month against persistent concerns about crude supply from Iran and Venezuela. OPEC on June 22 plans to discuss the outlook for its production-cut deal with non-OPEC producers led by Russia that was implemented at the start of 2017. Meanwhile, Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by only 1 to 862 this week. The rise follows gains in the previous two weeks. The total active U.S. rig count, which includes oil and natural-gas rigs, added 2 to 1,062. Benchmark crude oil futures for July delivery lost 21 cents or 0.30 percent to settle at $65.74 a barrel on the New York Mercantile Exchange. August Brent crude shed 86 cents or 1.1 percent to settle at $76.46 a barrel on London's Intercontinental Exchange.

 

Stretching the slide for the second straight day, Indian rupee depreciated to near one-month low against dollar on Friday, on increased selling of the US currency by exporters and banks. The domestic currency made a weak start and remained under pressure throughout the day due to the dollar strength against other currencies overseas. Traders also remained concerned with Moody's Investors Service's statement that India could prune its capital expenditure to avoid any slippage of its fiscal deficit target of 3.3% of GDP in the current fiscal, but warned any reduction in the excise duty on petroleum products would exert negative pressure on the country's sovereign credit profile. Market participants even overlooked DIPP Secretary Ramesh Abhishek's statement that foreign direct investment in India increased to $61.96 billion in 2017-18. He also said during the four years of the Modi government, foreign inflows jumped to $222.75 billion from $152 billion in the previous four-year period. On the global front, dollar and yen moved higher against other major currencies on Friday as worries over what is shaping up to be a tense G-7 summit sparked a flight into assets considered safer than others. Finally, the rupee ended at 67.51, 39 paise weaker from its previous close of 67.12 on Thursday.

 

The FIIs as per Friday's data were net sellers in equity and debt segments both. In equity segment, the gross buying was of Rs 3608.10 crore against gross selling of Rs 4108.88 crore, while in the debt segment, the gross purchase was of Rs 619.32 crore with gross sales of Rs 1138.51 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.76 crore against gross selling of Rs 1.09 crore.

 

The US markets ended mostly higher on Friday, but their gains was kept in check amid increasing tensions between the U.S. and key trade partners as the G-7 summit kicked off. Asian markets trading cautiously at this point of time, as investors focused on a mix of trade tensions and a landmark meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un. Indian equity benchmarks ended lower on Friday after two sessions of strong gains, with a weakening rupee, oil price volatility and muted global cues weighing on markets. Today, the markets are likely to make flat-to-positive start to the new week. Traders will get some support with CII's statement that Industry is expecting the GDP to grow by close to 8 per cent over the next couple of years, as strong reforms process and fiscal prudence have laid a solid foundation for growth. Some support will also come with report that foreign direct investment (FDI) in India increased to $61.96 billion in 2017-18. FDI inflows stood at $60 billion in the previous fiscal. During the four years of the BJP government, foreign inflows jumped to $222.75 billion from $152 billion in the previous four-year period. Meanwhile, industry body Assocham has said reducing taxes is the best solution to check the spurt in fuel prices which would also tremendously help India on the exports front. However, there will be some concern with report that India's forex reserves declined by $593.7 million to $412.23 billion for the week ended June 1 on a dip in the gold assets. In the previous reporting week, the total reserves had declined by $2.23 billion to $412.83 billion. There will be buzz in oil and gas related stocks on report that fuel prices on Saturday continued its downward streak with petrol rates falling by 40 paise per litre and diesel rates being cut by 30 paise per litre.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

10,767.65

10,724.65

10,795.05

BSE Sensex

35,443.67

35,307.47

35,532.41

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Sun Pharma

292.24

528.25

498.45

545.85

Tata Motors

272.49

309.95

303.05

316.20

SBI

140.97

273.00

268.70

275.60

ICICI Bank

113.40

288.25

285.53

290.93

Vedanta 

104.14

246.30

243.27

248.62

 

  • Axis Bank has launched an AI-powered chatbot -- Axis Aha -- which will help customers execute transactions and answer their banking-related queries.
  • Reliance Industries' telecom arm Reliance Jio is looking at covering 99% of India's population by the end of 2018-19. 
  • ITC has acquired floor cleaning brand Nimyle from Arpita Agro Products for an undisclosed amount, marking the cigarette-biscuits-hotel major's entry into the home care segment. 
  • Tata Motors Group global wholesales in May 2018, including Jaguar Land Rover, stood at 107,343 units, higher by 24%, over May 2017.
News Analysis