Thursday's trading session turned
out to be an abysmal end of the week for the Indian equity markets as they
prolonged the somber run for yet another session and deposed over half a
percent on disappointing macroeconomic data. Industrial growth contracted
unexpectedly in February, while consumer inflation quickened to a five-month
high in March, a double setback for the Indian economy as it enters the new
financial year. Industrial production shrank 1.2% in February against a 3.3%
rise in January, while Consumer inflation accelerated to 3.81% in March largely
due to increased fuel prices. The decline in Industrial production was
broad-based with manufacturing contracting 2%, mining reporting a 3.3% rise in
February and electricity generation stagnant at 0.3%. Besides, a weak trend in
other global markets on continued geopolitical tensions and comments by
President Donald Trump expressing concern about a strong greenback, also
dampened trading sentiment. Adding the woes, the country's second-largest
software services company Infosys has posted lower-than-expected January-March
earnings. Infosys has reported marginal rise of 0.17% in its consolidated net
profit at Rs 3603 crore for the quarter ended March 31, 2017 as compared to Rs
3597 crore for the corresponding quarter in the FY16. Furthermore, the
company's revenue outlook and plan to return cash to shareholders fell short of
expectations, raising concerns at the start of the earnings-reporting season. The
company expects its 2017-18 revenue to grow between 6.1% and 8.1% in dollar
terms and 6.5-8.5% in constant currency terms. Finally, the BSE Sensex
decreased 182.03 points or 0.61% to 29461.45, while the CNX Nifty was down by
52.65 points or 0.57% to 9,150.80. Indian markets remained closed on Friday.
The US markets closed lower on
Thursday, cementing a three-day losing streak and a decline for the
holiday-shortened week as investors dealt with the start of earnings season and
intensifying geopolitical jitters. The US dropping the largest nonnuclear
weapon in its arsenal on a complex of caves in Afghanistan did little to
encourage traders into a buying mood, with stocks extending losses after
reports of the bombing mission. Trading volumes were light in advance of market
closures in observance of Good Friday, and ahead of Easter. On the economy
front, a gauge of consumer sentiment improved in April, as most Americans were
upbeat about current conditions, although the partisan divide about the outlook
for the economy remains stark. The University of Michigan said that consumer
sentiment rose to 98 in a preliminary April reading, compared with March's
final result of 96.0. The Dow Jones Industrial Average lost 138.61 points or
0.67 percent to 20,453.25, the Nasdaq was down 31.01 points or 0.53 percent to
5,805.15, while S&P 500 dropped 15.98 points or 0.68 percent to 2,328.95.US
markets remained closed on Friday on account of Good Friday.
Crude oil futures recovered some
ground on Thursday after slipping in the previous session. The trade though
remained choppy and oil prices showed a lack of direction over the course of
the trading day, as traders stuck to the sidelines following the strong upward
move seen over the past few weeks. Some strength came with the International
Energy Agency's (IEA) statement that the oil demand and supply imbalance was
close to breakeven, after several developed countries reined in production.
Meanwhile, Oilfield services firm Barker Hughes reported its weekly U.S. rig
count rose by 11 to 683, it was the thirteenth straight weekly increase. Benchmark
crude oil futures for May delivery ended up by $0.07 to $53.18 on the New York
Mercantile Exchange. In London, Brent crude for May delivery ended tad higher by
$0.01 at $55.87 on the ICE.
Indian
rupee ended considerably stronger on Thursday as the dollar fell to a two-week
low against a basket of other currencies after US President Donald Trump said
that the currency was too strong and that he would prefer interest rates to
stay low. The local currency shrugged off the domestic data showed that
industrial production contracted in February and consumer price inflation edged
up in March. The March retail inflation rose to highest level in 5 months of
3.81%, while the February IIP contracted to 1.2% from 3.3% in January. Besides,
weak trade in local equities failed to cast any impact on the currency.
Finally, the rupee ended at 64.41, 26 paise stronger from its previous close of
64.67 on Wednesday.
The
FIIs as per Thursday's data were net sellers in equity segment, while they were
net buyers in debt segment. In equity segment, the gross buying was of Rs
4120.24 crore against gross selling of Rs 4615.84 crore, while in the debt
segment, the gross purchase was of Rs 2510.61 crore with gross sales of Rs
1088.38 crore.
The US markets continued their
weakness in the last session for the third straight day, following comments by
President Donald Trump, who told the Wall Street Journal he thinks the US
dollar "is getting too strong." Trump also said he likes a low interest rate
policy and noted he has not decided whether to reappoint Federal Reserve Chair
Janet Yellen. The Asian markets have made a mixed start with some indices
trading lower as geopolitical concerns offset data showing China's economy
accelerated for a second month. The Japanese market was down by around half a
percent after yen strengthened at a five-month high amid persistent concern
over the situation with North Korea. The Indian markets before going for a long
weekend lost substantial ground, today the start is likely to remain
soft-to-cautious with the geopolitical tensions on North Korea that impacted
the other Asian markets on Friday, weighing down the domestic market too. Also
on a Reserve Bank of India report that
credit growth plunged to a whopping six-decade low of 5.08 percent in the
financial year 2016-17, as against 10.7 percent a year ago. Traders will
however be getting some support with growth in exports of goods from India
reaching its peak in the last month of fiscal 2016-17 with a 27.59 per cent
increase, year-on-year, to $29.23 billion in March 2017. After two continuous
years of decline, exports in April-March 2016-17 posted an increase of 4.71 per
cent to $274.64 billion compared to the previous fiscal. Meanwhile, Moody's
Investors Service has said that India's credit profile would improve if it
follows the fiscal discipline path and set up a fiscal council as recommended
by the FRBM panel. Traders will be eyeing the wholesale price-based inflation
for March to be announced later in the day. Oil marketing companies will be in
action as the price of petrol has been hiked by Rs 1.39 per litre and diesel by
Rs 1.04 a litre in sync with firming international rates.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9150.80
|
9129.62
|
9187.32
|
BSE Sensex
|
29461.45
|
29382.31
|
29600.53
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Hindalco
|
200.27
|
183.25
|
179.80
|
189.35
|
Infosys
|
154.87
|
931.40
|
908.70
|
972.05
|
ICICI Bank
|
137.99
|
282.80
|
279.53
|
285.93
|
Bank of Baroda
|
123.77
|
175.65
|
172.13
|
178.53
|
SBI
|
99.44
|
291.55
|
290.00
|
293.10
|
Cipla's wholly owned subsidiary - Cipla Medpro South Africa has completed the acquisition of Anmarate, South Africa on April 12, 2017.
Infosys has reported a rise of 5.04 percent in its net profit at Rs 3562 crore for the quarter ended March 31, 2017 as compared to Rs 3391 crore for the same quarter in the previous year.
ITC is planning to overhaul its foods portfolio in a bid to increase its market share in categories that have been showing signs of fatigue more than a decade.
Wipro will sign contract worth Rs 615.82 crore with Karnataka government to connect government offices from the Gram Panchayat level in the State.