Indian benchmark indices ended
the range bound day of trade on a flat note with positive bias as investors
remained on the sidelines and refrained from any buying activity ahead of the
key consumer price inflation (CPI) data due later in the evening. The CPI-based
inflation is likely to come down in January to the lowest in the new series due
to subdued demand post-demonetization and base effect before spiking up again
in the next two months. Sentiments got some support with a report that the
government's revenue collection during April-January, 2016-17 has shown healthy
growth, indirect tax collection jumped 23.9 percent to Rs 7.03 lakh crore on
the back of robust central excise mop-up, while direct tax collection rose by
10.79 percent to Rs 5.82 lakh crore. The total direct and indirect tax
collections at the end of January stood at Rs 12.85 lakh crore, more than half
the Rs 16.26 lakh crore target for 2016-17. Some support also came in from
reports that after four months of intense selling, overseas investors turned
net buyers in February and have so far pumped in over Rs 5,800 crore in the
capital market. The latest inflow followed a net pullout of Rs 80,310 crore
from equity and debt together in the past four months (October-January).
However, gains remained capped with the report that Industrial production
contracted in December 2016 due to a sharp decline in production of consumer
goods, confirming a demonetisation led contraction in demand. Index of Industrial
Production (IIP) was 0.4% lower in December 2016 from the same period a year
ago. The number was well below the 5.7% growth in November and consensus
expectation of around 1% growth in December. Adding anxiety among investors,
the Nomura's report indicated that India's economic growth is likely to remain
muted in the first quarter of this calendar year with the GDP likely to grow at
5.7 per cent in the January-March period amid subdued activity. Finally, the
BSE Sensex gained 17.37 points or 0.06% to 28351.62, while the CNX Nifty was up
by 11.50 points or 0.13% to 8,805.05.
The US markets closed higher on
Monday, with major indexes closing at record highs for a third session in a
row, as financial and industrial stocks paved the way to higher ground. This
extended gain is due to a confluence of a few factors, including the earnings
recession being over, a very strong bull market, and the hope for future
prosperity under the pro-growth policies of the new administration. Gains have
been pronounced since Donald Trump's presidential election victory in November,
and the latest move higher was pegged to the president hinting that he would
announce a tax plan in the near term. Banks have been the biggest beneficiaries
of the postelection rally, with investors betting they will benefit from both
deregulation and an environment with rising interest rates. Industrial stocks
have gained on hopes that a massive infrastructure deal, which Trump also
touted during the campaign, would increase demand for the sector. On economy
front, a measure of US inflation expectations rose for a second straight month
in January to its highest level since mid-2015, according to a Federal Reserve
Bank of New York survey released showed that reinforced the view that interest
rates would keep climbing. The Dow Jones Industrial Average added 142.79 points
or 0.70 percent to 20,412.16, the Nasdaq was up 29.83 points or 0.52 percent to
5,763.96, while S&P 500 gained 12.15 points or 0.52 percent to
2,328.25.
Crude oil futures snapped their
gaining streak on Monday amid speculation that robust U.S. production has
offset OPEC's supply cuts. A forecast by the government showed an expected
higher production level from U.S. shale drillers in response to higher prices. US
Energy Information Administration (EIA) said that Shale oil output in the US is
expected to grow by 79,000 barrels per day by March, taking the overall output
levels in the US to 4.83 million bpd. Benchmark crude oil futures for March
delivery fell by $0.93 or 1.73 percent to $52.93 on the New York Mercantile
Exchange. In London, Brent crude for March delivery ended lower by 1.96 percent
at $55.59 on the ICE.
Extending
its weakness for the second straight session, Indian rupee depreciated against
dollar on Monday, ahead of the release of key consumer price inflation (CPI)
data due later in the day. The rupee sentiment was also hit as industrial
production contracted to a four-month low of 0.4 per cent in December 2016 from
the same period a year ago, due to a sharp decline in production of consumer
goods. The cumulative IIP growth for April-December was 0.3% against 3.2% for
the same period in 2015. Additionally, increased demand for the American
currency from importers too weighed on the rupee sentiment. On the global
front, dollar rose to a two-week high against yen on Monday, as investors
focused again on the U.S. reflation trade which dominated the aftermath of Donald
Trump's election in November but has stalled this year. Finally, the rupee
ended at 67.01, 13 paise weaker from its previous close of 66.88 on Friday.
The
FIIs as per Monday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4952.76 crore against gross selling
of Rs 4397.49 crore, while in the debt segment, the gross purchase was of Rs
1849.38 crore with gross sales of Rs 1134.09 crore.
The US markets extended their
upmoves in last session to reach fresh record highs, on optimism about reduced
corporate taxes under President Donald Trump. Though there was not much
activity in the market lacking any major U.S. economic data. The Asian markets
have made mostly a lower start with the
rally fizzling out, traders are pricing in a 30 percent chance the US Fed will
lift rates at its March 15 meeting. Japanese market too was in red ahead of Bank
of Japan governor Haruhiko Kuroda's speech later in the day. The Indian markets
continued their consolidation mood and once again made a flat closing in last
session, some weak earnings updates from the major companies weighed on
markets. Today, the start is likely to be cautious on mostly a lower start of
the regional peers, however traders will be getting some encouragement with
retail inflation easing to 3.17 percent in January, its lowest level in at
least five years, mainly due to a drop in the annual food inflation, which
stood at 0.53 percent last month, lower than 1.37 percent in December. Markets
will also be getting some support with Finance Minister Arun Jaitley's
statement that the Modi government's emphasis is on bold decision making and a
clean economy with business friendly environment, the returns of which can be
spent on the poor. Meanwhile, the Chief Executive Officer of NITI Aayog Amitabh
Kant has said that US President Donald Trump will soon realise that
protectionist measures like restrictions on H1B visa will impact America
itself. There will be some buzz in the dye and chemical stocks on report that
China has launched anti-dumping and countervailing duties investigations
against some Indian manufactures for allegedly exporting a chemical product -
widely used in dyes and pharmaceutical. 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
|
8805.05
|
8763.87
|
8836.57
|
BSE Sensex
|
28351.62
|
28213.07
|
28474.49
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Bank of Baroda
|
383.53
|
168.80
|
163.53
|
178.53
|
SBI
|
198.53
|
271.65
|
268.48
|
276.53
|
IDEA
|
191.69
|
107.25
|
104.70
|
109.40
|
Hindalco
|
174.59
|
185.00
|
181.77
|
188.07
|
ICICI Bank
|
119.49
|
281.65
|
279.43
|
283.98
|
Larsen & Toubro is planning to set up an IT Park and IT SEZ in Bengaluru for a combined investment of Rs 2,080 crore.
Lupin is planning to launch around 25 products in the US in next finance year.
Idea Cellular has reported consolidated net loss after taxes of Rs 383.88 crore for the quarter ended December 31, 2016, as compared to a net profit of Rs 659.36 crore for the same quarter in the previous year.
Mahindra & Mahindra is planning to make an investment of Rs 1500 crore at its Nasik and Igatpuri plants in Maharashtra.
Coal India has reported 20.26% fall in its consolidated net profit after taxes, minority interest and share of profit of jointly controlled entities and associates at Rs 2884.47 crore for the quarter ended December 31, 2016, as compared to Rs 3617.18 crore for the same quarter in the previous year.