Indian equity bourses settled
Tuesday's trading session off day's low points. After a lackluster start,
bourses remained negative throughout the day, as Care Ratings' report stated
that performance of companies during the quarter ended December of the
financial year 2019-20 was weak with contraction in revenue and moderation in
the growth rate of net profits. Adding more worries, International Monetary
Fund (IMF) said that the goods and services tax (GST) collections in India have
been below potential. The organisation said that multiple rates along with
exemptions and implementation challenges have affected the GST collections.
However, in the last hour of the day, indices managed to trim most of their
losses, with a US-based think tank World Population Review report showing that
India emerged as the world's fifth largest economy by overtaking the UK and
France in 2019. Traders got some support, as Union Finance Minister Nirmala
Sitharaman defended the fiscal deficit figures in the union budget and termed
it as absolutely realistic. She noted that the government has been absolutely
realistic both on the score of revenue generation and on the score of what can
spend or borrow, so figures therefore are absolutely realistic keeping in mind
the economy. Finally, the BSE Sensex lost 161.31 points or 0.39% to 40,894.38,
while the CNX Nifty was down by 53.30 points or 0.44% to 11,992.50.
The US markets ended mostly lower
on Tuesday, following the long holiday weekend, after Apple warned of weaker
than previously forecast second quarter revenue. Apple said it expects to miss
its forecast for second quarter revenue of $63 billion to $67 billion due to
lower iPhone production and weak Chinese demand as a result of the coronavirus
(COVID-19) outbreak. The COVID-19
epidemic has sickened more than 73,000 people and claimed nearly 1,900 lives
thus far. Further, disappointing earnings report from Walmart (WMT) also
weighed on the markets after the retail giant reported weaker than expected
fourth quarter results and provided disappointing guidance. On the economic
data front, the Federal Reserve Bank of New York released a report showing
growth in New York manufacturing activity saw a notable acceleration in the
month of February. The New York Fed said its general business conditions index
climbed to 12.9 in February from 4.8 in January, with a positive reading
indicating growth in regional manufacturing activity. Street had expected the
index to inch up to 5.0. The bigger than expected increase by the headline
index came as the new orders index shot up 16 points to 22.1 and the shipments
index climbed to 18.9.
Crude oil futures ended flat on
Tuesday as traders weighed worries about the coronavirus and its impact on
energy demand, along with a forecast for a slowdown in US shale oil output.
Crude-oil production from seven major US shale plays is forecast to climb by 18,000
barrels a day in March to 9.175 million barrels a day, according to a report
from the Energy Information Administration (EIA) released. The report showed
that oil output from the Permian Basin is expected to see an increase but shale
output from the Anadarko, Appalachia, Bakken and Niobrara regions, is expected
to see monthly declines. Crude oil futures for March settled unchanged at
$52.05 a barrel on the New York Mercantile Exchange. April Brent crude added 8
cents or 0.1 percent to settle at $57.75 a barrel on London's Intercontinental
Exchange.
Indian
rupee depreciated considerably against the US dollar on Tuesday, as investor
sentiments remained fragile amid coronavirus fears. Stronger dollar against key
global currencies and subdued equity market too put pressure on the domestic
unit. Market participants failed to take support with a US-based think tank
World Population Review report showing that India emerged as the world's fifth
largest economy by overtaking the UK and France in 2019. It added that India is
developing into an open-market economy from its previous autarkic policies. On
the global front, euro weakened on Tuesday, close to the three-year low it
touched on Monday, after a German survey showed a slump in investor confidence,
adding to pessimism about the outlook for Europe's largest economy. The last traded price of rupee was 71.56, 24
paise weaker from its previous close of 71.32 on Monday.
The
FIIs as per Tuesday's data were net buyers in equity segment, while they were
net sellers in debt segment, In equity segment, the gross buying was of Rs
4177.32 crore against gross selling of Rs 4004.00 crore, while in the debt
segment, the gross purchase was of Rs 1424.43 crore with gross sales of Rs
1542.84 crore. Besides, in the hybrid segment, the gross buying was of Rs 16.12
crore against gross selling of Rs 13.80 crore.
The US markets ended mostly lower
on Tuesday after Apple warned its revenue may be lower than forecast due to the
coronavirus in China. Asian markets are trading mostly higher in early deals on
Wednesday as investors tried to shake off worries about the coronavirus
epidemic following a slight decline in the number of new cases. Indian markets
ended lower for fourth consecutive session on Tuesday as the ongoing AGR issue
weighed on telecom and financial stocks. Today, the benchmarks are likely to
make an optimistic start tracking Asian peers. Traders will be taking
encouragement with Finance Minister Nirmala Sitharaman's statement that the
government will soon announce measures to deal with the impact of Coronavirus
outbreak on the domestic industry. Besides, Indian business leaders are
demanding cuts in import duties on antibiotic drugs, mobile parts and other
items as the outbreak of the coronavirus has disrupted supplies from China.
Some support will also come with the Reserve Bank of India (RBI) Governor
Shaktikanta Das' statement that there is no reason to doubt that the government
will be able to cut fiscal deficit to 3.5% of the GDP in the fiscal beginning
April 1. Das said the Budget for 2020 had announcements that certain bonds will
be opened up for non-resident investment without any limit. Market participants
may take note of report that the country's Special Economic Zones have achieved
$100 billion dollar worth of exports in FY 2019-20 amidst volatile global
economy. Though, there may be some cautiousness as Moody's lowered growth
forecast for the Asia-Pacific (Apac) region to 5.2% for 2020 citing the
lingering impact of the coronavirus outbreak in China, the impact of which will
be more pronounced on China and India. Investors may react to report that US
President Donald Trump has said he is saving the big deal with India for later
and he does not know if it will be done before the presidential election in
November, clearly indicating that a major bilateral trade deal during his visit
to Delhi next week might not be on the cards. There will be some buzz in the
mining stocks with Union Coal and Mines Minister Pralhad Joshi's statement that
the government looks to stop the substitutable import of thermal coal from
2023-24. Agriculture stocks will be on focus with the government's latest data
showing that India is set to harvest a record wheat production of 106.21
million tonne in 2019-20 crop year on the back of good rains.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,992.50
|
11,923.45
|
12,046.15
|
BSE Sensex
|
40,894.38
|
40,656.07
|
41,087.58
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,290.70
|
35.05
|
33.30
|
37.15
|
Tata Motors
|
527.44
|
161.60
|
157.47
|
166.87
|
SBI
|
385.89
|
317.55
|
311.57
|
321.37
|
ONGC
|
355.75
|
99.30
|
97.15
|
100.85
|
NTPC
|
344.59
|
109.60
|
105.30
|
112.40
|
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