Snapping nine day winning streak,
Indian equity benchmarks ended the Wednesday's trade slightly in red, as
traders opted to book some of their profit after nine sessions of continuous
rally amid lack of any major domestic cues. Also, investors eyeing for
corporate earnings to get further market direction. Markets started the session
on an optimistic note and traded in fine fettle for most part of the day, as
traders took some encouragement with International Monetary Fund's (IMF)
statement that India's GDP growth will accelerate in the current and next
fiscal years as structural reforms raise potential output. GDP is forecast to
grow 7.4% in the current fiscal from 6.7% in FY18 and accelerate further in
FY20 to 7.8%. Market participants also got some support with Union Minister
Suresh Prabhu's statement that the government is working with the US to resolve
all trade issues even as America has decided to review India's eligibility to
enjoy duty-free access for certain products under a tax benefit scheme.
Meanwhile, the group of ministers (GoM) on Tuesday worked out a revamped return
for goods and services tax (GST) to help ease the burden on businesses.
Domestic sentiments were upbeat with a report stating that India recorded the
biggest rise of 73% in investment proposals into France among emerging
economies in 2017, as there were 19 Indian foreign investment projects in
France. However, profit booking in last leg of trade played spoil sports for
the domestic markets which dragged the key indices slightly in red. Anxiety
spread among the investors with a private report that India's economy will be
hit hard by a combination of a global tariff war and the US Federal Reserve's
monetary tightening cycle. The report noted that a tariff war will reduce
exports and lead to imported inflation, which will hurt Indian purchasing power
and investments. Finally, the BSE Sensex shed 63.38 points or 0.18% to
34,331.68, while the CNX Nifty was up by 22.50 points or 0.21% to 10,526.20.
The US markets closed mostly
higher on Wednesday, while the Dow industrials ended lower as IBM's shares got
walloped; however, gains in shares of energy-related firms helped the broader
market post modest gains. The street showed a muted reaction to the release of
the Beige Book report, which underscored that economic activity remained at a
modest to moderate pace in March and early April. The Federal Reserve reported
that robust business borrowing, rising consumer spending, and tight labor
markets indicate the US economy remains on track for continued growth, with the
risks of a global trade war the one big outlier. In its periodic Beige Book
summary of contacts with businesses in its 12 regional districts, the Fed said
the overall outlook among businesses remained positive, but that many were
worried about the Trump administration's use of tariffs. In fact, the word tariffs
appeared 36 times in report after not appearing at all in the previous Beige
Book published March 7. It was referenced as a factor affecting prices or as a
potential concern for the outlook in 10 of the 12 regional banks' activity
summaries. Several Fed districts reported a jump in commercial and industrial
lending, from a robust 17 percent year-over-year increase in St. Louis to solid
growth in Atlanta and healthy demand in Cleveland. The Nasdaq gained 14.137
points or 0.19 percent to 7,295.24, the S&P 500 was up by 2.25 points or
0.08 percent to 2,708.64, while the Dow Jones Industrial Average lost 38.56
points or 0.16 percent to 24,748.07.
Crude oil futures ended higher on
Wednesday, hitting their highest level in three and a half years following a
surprise decline in weekly U.S. crude supplies and expectations that major oil
producers will remain committed to curbing production. The U.S. Energy
Information Administration (EIA) said crude supplies fell by 1.1 million
barrels for the week ended April 13. Traders were also looking ahead to the
outcome of the joint Organization of the Petroleum Exporting Countries and
non-OPEC ministerial monitoring committee meeting expected to be held later
this week. Benchmark crude oil futures for May delivery surged $1.95 or 2.9
percent to settle at $68.47 a barrel on the New York Mercantile Exchange. June
Brent crude gained $1.90 or 2.7 percent to settle at $73.48 a barrel on
London's Intercontinental Exchange.
Indian
rupee ended marginally lower against US dollar on Wednesday, due to fresh
demand for the American currency from banks and importers. Traders remained
concerned with a private report that India's economy will be hit hard by a
combination of a global tariff war and the US Federal Reserve's monetary
tightening cycle. The report noted that a tariff war will reduce exports and
lead to imported inflation, which will hurt Indian purchasing power and
investments. Moreover, weakness in local stocks, which snapped a nine-day
winning streak, also weighed on the sentiments. However, losses were limited as
traders took some support with International Monetary Fund's (IMF) statement
that India's GDP growth will accelerate in the current and next fiscal years as
structural reforms raise potential output. GDP is forecast to grow 7.4% in the
current fiscal from 6.7% in FY18 and accelerate further in FY20 to 7.8%. On the
global front, dollar rose against yen on Wednesday amid improving risk appetite
as concerns over trade friction between the U.S. and China and tensions in the
Middle East subsided. Finally, the rupee ended at 65.66, 2 paise weaker from
its previous close of 65.64 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity and debt segments both. In the equity segment, the
gross buying was of Rs 4564.92 crore against gross selling of Rs 5704.68 crore,
while in the debt segment, the gross purchase was of Rs 1894.26 crore with
gross sales of Rs 4871.92 crore. Besides, in the hybrid segment, the gross
buying was of Rs 2.88 crore against gross selling of Rs 2.75 crore.
The US markets ended mostly
higher on Wednesday after the Fed said economic activity continued to expand at
a modest to moderate pace across the twelve districts in March and early April.
It also said the economic outlooks remains positive but noted contacts in
various sectors. Asian markets were rallying with oil prices at three and a
half year highs helping to boost sentiment for the region's equities. Indian
equity markets fell slightly on Wednesday to snap a nine-day winning streak
even as global markets remained buoyant amid easing geopolitical and trade
tensions. Today, the markets are likely to make an optimistic start amid firm
global cues. Traders will take some support with International Monetary Fund's
(IMF) statement that the debt level is relatively high in India, but the
authorities are planning to bring it down over the medium term with the right policies.
In fiscal year 2017-18, India is planning to continue with the consolidation in
the current fiscal year and over the medium term. However, there will be some
anxiety among investors with former finance minister P Chidambaram's statement
that the ghost of demonetisation has come back to haunt the government and
alleged that the Rs 2,000 notes were printed only to help hoarders. In the wake
of cash crunch in some parts of the country, he also said there was a
possibility that people have lost confidence in the banking system due to the
bank scams and they were not putting their surplus money into the banks. There
will be buzz in export related stocks after Commerce and Industry Minister
Suresh Prabhu exporters of taking up the issue of GST refund with the finance
ministry and said he plans to call a ministerial meeting to discuss export
related issues. There will be some important earnings announcements too, to
keep the markets buzzing.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,526.20
|
10,492.53
|
10,577.03
|
BSE Sensex
|
34,331.68
|
34,203.88
|
34,525.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
238.16
|
275.35
|
269.27
|
280.17
|
Hindalco
|
233.23
|
242.80
|
237.65
|
246.35
|
ICICI Bank
|
207.55
|
290.05
|
287.73
|
293.63
|
SBI
|
161.42
|
246.45
|
244.53
|
249.13
|
Vedanta
|
140.09
|
291.10
|
289.00
|
293.60
|
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Hero MotoCorp has set a new benchmark in the two-wheeler market by launching an e-commerce portal to retail Hero Genuine Parts and Accessories.
Vedanta has received NCLT's approval to acquire Electrosteel Steels.