Indian markets finished last
trading session of the week on a pessimistic note, as investors remained
cautious ahead of macroeconomic data - industrial production numbers for March
and inflation data for April based on Consumer Price Index (CPI) - to be
announced later in the day. CPI is expected to have eased to a three-month low
of 3.49% in April from 3.81% the previous month. The government will release
the new series of Index of Industrial Production (IIP) as well as Wholesale
Price Index (WPI), with 2011-12 as the base year, so as to map economic
activities more accurately. Also, there was some profit taking in the high
fliers of the recent rally that once led Sensex slip below the crucial level of
30,200, but despite the rallies losing fizz, downside remains capped with SBI
Research's Ecowrap report, indicating that the easing of crude oil prices will
have positive effect not only on inflation but also on GDP growth. It said that
average crude oil prices will be around $45 for the next half of this year and
this, coupled with positive macro fundamentals, could translate into better
growth numbers for the country. Some support also came with Finance Secretary
Ashok Lavasa's statement that India can clock a GDP growth of over 7.5 percent
in the fiscal 2017-18 and the country's macro-economic fundamentals, including
fiscal deficit and inflation, are all very sound. Lavasa also said that while
there has been a general climate of economic slowdown in the last few years
across the world, India has managed to maintain a healthy rate of growth. In
scrip specific development, the top loser in Nifty was Yes Bank, which came
under selling pressure after the bank disclosed that it had reported lower
non-performing assets (NPAs) than what was judged by the banking regulator for
the year ended March 31, 2016. According to its annual report, the bank had
reported gross NPAs worth Rs 748.9 crore as on March 31, 2016, while the RBI,
as part of its annual supervisory action, had asked the lender to report gross
NPAs worth Rs 4,925.6 crore. Finally, the BSE Sensex decreased 62.83 points or
0.21% to 30188.15, while the CNX Nifty was down by 21.50 points or 0.23% to
9,400.90.
The US markets ended the choppy
day of trade mostly in red terrain on Friday, as sentiments remained dampened
following the release of a Commerce Department report showing a smaller than
expected increase in retail sales in the month of April. The Commerce
Department said retail sales climbed by 0.4 percent in April compared to
economist estimates for 0.6 percent growth. However, the report also said
retail sales inched up by a revised 0.1 percent in March versus the 0.2 percent
drop originally reported. Excluding a rebound in auto sales, retail sales rose
by 0.3 percent in April. A separate report from the Labor Department showed
that consumer prices rebounded in line with economist estimates in the month of
April. The Labor Department said its consumer price index rose by 0.2 percent
in April after falling by 0.3 percent in March. Excluding food and energy
prices, core consumer prices inched up by 0.1 percent in April after dipping by
0.1 percent in March. Core prices had been expected to rise by 0.2 percent.
Meanwhile, the University of Michigan released a report showing a modest
improvement in consumer sentiment in the month of May. The report said the
preliminary reading on the consumer sentiment index for May came in at 97.7
compared to the final April reading of 97.0. Economists had expected the index
to inch up to 97.3. The Dow Jones Industrial Average slipped 22.81 points or
0.11 percent to 20,896.61 and while the S&P 500 was down by 3.54 points or
0.15 percent to 2,390.90, while the Nasdaq ended higher by 5.27 points or 0.09
percent to 6,121.23.
Crude oil futures ended flat with
a positive bias on Friday, as investors appeared to take profit from the
two-day rally in oil prices while the number of active U.S. drilling rigs rose
for a seventeenth straight week. Also,
there was some cautiousness with Commerzbank doubts of whether OPEC's supply
quota plan can alleviate the global supply glut anytime soon. It said that
extending the plan is unlikely to be more successful than the cuts implemented
so far in the longer-term. Earlier, OPEC's monthly report showed U.S.
production accounted for around 93%, roughly 540,000 barrels of total non-OPEC
growth in April. Meanwhile, oilfield services firm, Baker Hughes, reported its
weekly U.S. rig count rose by 9 to 712. Benchmark crude oil futures for June
delivery ended higher by $0.01 to $47.84 on the New York Mercantile Exchange.
In London, Brent crude for July delivery ended up by $0.08 to end at $50.85 on
the ICE.
Appreciating
for second consecutive sessions, Indian rupee ended stronger on Friday ahead of
key economic data, i.e. March IIP and April CPI data, scheduled to be released
later in the day. Local currency got some support with SBI Research's Ecowrap
report, which said that the easing of crude oil prices will have positive
effect not only on inflation but also on GDP growth. It has said that average
crude oil prices will be around $ 45 for the next half of this year and this,
coupled with positive macro fundamentals, could translate into better growth
numbers for the country. On the global front, dollar traded near a three-week
high on Friday, on track for its strongest week this year, as robust producer
price and labour market data bolstered expectations that the Federal Reserve
will raise US interest rates again in June. Finally, the rupee ended at 64.31,
6 paise stronger from its previous close of 64.37 on Thursday.
The
FIIs as per Friday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 5112.04 crore against gross selling
of Rs 3677.16 crore, while in the debt segment, the gross purchase was of Rs
1273.18 crore with gross sales of Rs 482.26 crore.
The US markets despite coming off
their early weakness made a mixed closing in last session, snapping the
lackluster week on mostly a negative note, after a weaker than expected retail
sales data. The Asian markets have made a mixed start and some of the indices
are down by over a quarter percent led by the Japanese market. The Chinese
market which started in green, too has pared some of the gains, as data showed
China's industrial production slowed, adding to concerns over the strength of
the global economy. The Indian markets
snapping their winning streak had ended lower in the last session, with traders
turning cautious ahead of key macro data. Today, the start of the new week is
likely to be in green, though the regional peers are showing mixed trend,
Indian markets will be getting encouragement with the consumer price index
(CPI) inflation easing to 2.99 per cent in the first month of the new financial
year compared with 3.89 per cent in March and 5.47 per cent in the year
earlier. Also, the inflation based on the wholesale price index (WPI) slipped
to a four-month low of 3.85 percent in April as both food articles and
manufactured items showed cooling in prices. However, there will be some
cautiousness too, with industrial output growth slipping to 2.7 percent in
March compared to 5.5 percent in March 2016, mainly on account of poor
performance of manufacturing sector. Meanwhile, India Inc has invoked the
demand supply dynamics, calling for lower interest rates for private investment
to pick up that will help the government achieve full benefit of cash ban. There
will be buzz in the power sector, as India has climbed up to twenty sixth
position in World Bank's electricity accessibility ranking in the current year
from 99th spot in 2014. There will be lots of important earnings announcements
to keep the markets buzzing.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9400.90
|
9369.72
|
9434.92
|
BSE Sensex
|
30188.15
|
30099.82
|
30288.11
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
150.95
|
296.55
|
293.05
|
300.30
|
SBI
|
133.76
|
297.90
|
295.07
|
301.67
|
Hindalco
|
112.32
|
191.05
|
188.35
|
194.55
|
Yes Bank
|
102.80
|
1483.10
|
1437.63
|
1560.18
|
Axis Bank
|
99.34
|
503.00
|
495.85
|
513.50
|
BPCL has signed MoU with Kerala Startup Mission, a state government nodal agency for promoting entrepreneurship, to provide aid and investments in start-ups from various technology domains.
SBI is planning introduce new facility that would enable withdrawal of cash through ATMs using the Bank's mobile wallet.
L&T has entered into a contract with the Ministry of Defence for supply of 100 units of 155mm/ 52 calibre Tracked Self-Propelled Gun systems to the Indian Army.
Dr. Reddy's Laboratories has reported around three fold rise in its consolidated net profit after tax and share of profits of associates at Rs 337.60 crore for the quarter ended March 31, 2017 as compared to Rs 122.60 crore for the same quarter in the previous year.