Extending their winning streak
for the second day in a row, Indian equity benchmarks ended the session with a
gain of over a percent on Thursday. It turned out to be a rather volatile day
of trade as the indices rebounded after drifting to lower levels in the noon
session and sustained position build up was witnessed across the board.
Sentiments got a boost after global ratings agency Moody's Investors Service
rehashed faith in the Indian economy. According to agency, country's economy
will grow at 7.5% in 2016 and 2017 as it is relatively less exposed to external
headwinds, like China slowdown, and will benefit from lower commodity
prices. Some support also came with the
report that India's current account deficit (CAD), is likely to narrow to 0.7
per cent of GDP in the current financial year from 1.3 per cent in FY'15.
However, investor remained cautious with the report that foreign Institutional
Investors (FIIs) continued their selling spree as they sold net Rs 560 crore on
February 17, 2015. On the global front, Asian markets ended in green on
Thursday as crude oil prices advanced, while European stocks wobbled on
Thursday in early deals. Back home, the benchmark got off to a rollicking
opening as investors rejoiced after crude oil prices extended gains on hopes
that big producers will cap production. Sentiment was also buoyed by a rise on
Wall Street, where U.S. shares advanced for the third straight day, helped by
some recovery in oil prices and encouraging economic data. The indices in no
time climbed to intraday highs and traded around the psychological 23,700
(Sensex) and 7,200 (Nifty) levels through the morning trades. But the optimism
soon started showing signs of easing and profit booking in few sectors and
mixed trade in European markets weighed down the local bourses. Yet, final hour
buying ensured that the key indices not shut shops near the intraday highs. Finally,
the BSE Sensex surged by 267.35 points or 1.14% to 23649.22, while the CNX
Nifty rose 83.30 points or 1.17% to 7,191.75.
The US markets closed lower on
Thursday, snapping a three-day winning streak. The stocks have climbed sharply
this week as rising oil prices helped re-inflate battered energy and industrial
shares. On the economy front, an early indication of manufacturing conditions
in February indicated contraction for the sixth straight month. The
Philadelphia Fed stated that its manufacturing barometer of regional
manufacturing activity rose slightly to negative 2.8 from negative 3.5. The
index for new orders sank to negative 5.0 from negative 1.9, the lowest level
since November 2013. Shipments remained positive but slid to 2.5 from 9.6 in
the prior month. Inventories slipped to negative 17.1 in February, the lowest
reading in almost three years, from negative 15.7 in the prior month. The index
of US leading economic indicators decreased in January for a second month,
reflecting a slump in stock prices as well as a pickup in jobless claims that
has since reversed. The Dow Jones Industrial Average lost 40.40 points or 0.25
percent to 16,413.43, the Nasdaq was down 46.53 points or 1.03 percent to
4,487.54 while, the S&P 500 dropped by 8.99 points or 0.47 percent to
1,917.83.
Crude oil futures paring most of
their early gains ended flat on Thursday after an unexpected build in U.S.
inventories last week pushed inventories to near full storage capacity. The
prices were also weighed down with Saudi official dashing hopes for a coordinated
output cut. Its foreign minister said that if other producers want to limit or
agree to a freeze in terms of additional production that may have an impact on
the market but Saudi Arabia is not prepared to cut production. Benchmark crude
oil futures for March delivery ended up by $0.01 or 0.03 percent to $30.67 a
barrel after trading in a range of $30.55 and $31.95 a barrel on the New York
Mercantile Exchange. In London, Brent crude for April delivery closed at $34.20,
down $0.31 or 0.90 percent on the ICE.
Indian rupee trimmed its initial
gains and ended flat with positive bias against dollar on Thursday on fresh
selling of American currency by banks and exporters. Further, gains in the
domestic equity market also helped rupee to strengthen against the dollar.
However, dollar's strength against other currencies overseas capped the rupee
gains. The sentiments were on optimistic note after Moody's Investors' Service
stated that Indian economy will grow at 7.5% in 2016 and 2017. On the global
front, euro made tentative gains against its US counterpart on Thursday, as a
raft of positive economic data provided a boost to the single currency. Finally,
the rupee ended at 68.46, 1 paise stronger from its previous close of 68.38 on
Wednesday.
The
FIIs as per Thursday's data were net sellers in equity segment, while they were
net buyer in debt segment. In equity segment, the gross buying was of Rs 3125.34
crore against gross selling of Rs 3419.03 crore, while in the debt segment, the
gross purchase was of Rs 1232.26 crore
with gross sales of Rs 1027.32 crore.
The US markets snapping their
gaining streak ended lower in last session, though the crude moved higher but
trade remained relatively choppy. There was some concern with a Conference
Board report showing a second straight monthly decrease by its index of leading
US economic indicators. The Asian markets are mostly in red with some of the
indices trading lower by over a percent, led by losses in energy stocks, as
crude declined again. Japanese market was down by over two percent as the yen
strengthened against euro. The Indian markets despite some mid day choppiness
surged in the last session, extending their gains for yet another day. Today
the start is likely to be mildly soft tailing the weakness in the other global
markets and the major bourses will consolidate. Though, there will be some
support to the markets, restricting any major fall, with Moody's Investors
Service stating that Indian economy will grow at 7.5 percent in 2016 and 2017
as it is relatively less exposed to external headwinds, like China slowdown,
and will benefit from lower commodity prices. The agri related stocks will be
in limelight today with Prime Minister Narendra Modi unveiling the operational
guidelines for the Pradhan Mantri Fasal Bima Yojana. Textile sector too will be
buzzing, as the government is expecting Rs 30,000 crore investment in 74
textile parks and is planning to announce a new textile policy by April this
year. Minister of State for Textile Santosh Gangwar has said that we are mainly
focusing on manufacturing of value-added products and export-oriented goods
that will benefit the economy. There will be some action in NBFC companies too,
as the Reserve Bank revised guidelines for NBFC factor companies stipulating
that there should be board approved limit for underwriting commitments with a
view to mitigate credit risk.
Support
and Resistance: NSE Nifty and BSE Sensex
Index
|
Previous close
|
Support
|
Resistance
|
CNX Nifty
|
7191.75
|
7141.37
|
7228.62
|
BSE Sensex
|
23649.22
|
23486.50
|
23773.64
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Vedanta
|
318.92
|
75.85
|
73.07
|
78.17
|
ICICI Bank
|
293.28
|
196.15
|
193.23
|
199.03
|
Bank of Baroda
|
218.4
|
138.85
|
134.08
|
144.93
|
SBI
|
210.24
|
159.80
|
156.23
|
163.53
|
Hindalco
|
146.63
|
68.90
|
67.37
|
70.27
|
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