Tuesday turned out to be a
daunting session of trade for Indian equity benchmarks where frontline gauges
ended with a cut of around a percent, breaching their crucial 31,800 (Sensex)
and 9,850 (Nifty) levels, as market participants opted to book profit at record
levels. Markets started the session on pessimistic note, as traders remained
concern with the industry body Associated Chambers of Commerce & Industry
of India's (ASSOCHAM) latest report stating that the inflation outlook is
expected to remain quite muted at least till festival season of Durga Puja and
Diwali. Adding to the pessimism, a private report showed that India's Current
Account Deficit (CAD) is likely to widen to 1.3% of GDP in 2017 from 0.6% in 2016,
largely owing to stronger domestic growth in the second half of this year. The
report highlighted that the import demand is expected to resume once GST
disruptions settle down after July. The report said lower commodity prices and
adverse base effects will continue to cap the year-on-year growth rates in
second half of 2017, partly offsetting the continued recovery in advanced
economies. Besides, some concerns also spread among the inventors with Fitch
Ratings' latest report that new indirect tax regime GST will have a negative
impact on oil and gas, and SME sectors. Investors shrugged off private survey
stating that Indian CEOs are confident about the growth prospects of the
country over the next three years, compared to that of global economy. Meanwhile,
the Supreme Court granted one week's time to the Reserve Bank of India (RBI) to
respond to a report of a committee appointed to deal with bad loans with banks
that have crossed Rs 8 lakh crore. Finally, the BSE Sensex declined 363.79
points or 1.13% to 31,710.99, while the CNX Nifty was down by 88.80 points or
0.90% to 9,827.15.
The US markets closed mostly
higher on Tuesday, with the S&P 500 and the Nasdaq closed at records as
gains in tech stocks offset weakness in telecom services and energy shares.
There were concerns that the collapse of the health-care bill could unhinge the
market after the Republican leaders in the Senate late Monday ditched their
effort to repeal and simultaneously replace Obamacare, also known as the
Affordable Care Act. On the economy front, sentiment among home builders slid
in July after a stretch of strong months as rising costs for materials started
to pinch. The monthly confidence gauge from the National Association of Home
Builders fell two points to a reading of 64. June's reading, initially reported
as 67, was revised down one point. The index now stands at the lowest level
since before the election. Builders had high hopes for the new administration
after then-candidate Donald Trump addressed the trade group in August, pledging
to roll back regulations. The Nasdaq added 29.88 points or 0.47 percent to
6,344.31, the S&P 500 edged higher by 1.47 points or 0.06 percent to
2,460.61, while the Dow Jones Industrial Average lost 54.99 points or 0.25
percent to 21,574.73.
Crude oil futures bounced back
and ended higher on Tuesday amid reports that Saudi Arabia will sharply cut oil
production in the face of defiance from fellow OPEC members. The report
suggested that Saudi Arabia is considering cutting crude exports by up 1
million barrels a day. Investors also cheered data suggesting that rising
global demand for crude could offset some of the current excess supply. A weak
US dollar also boosted commodities. Benchmark crude oil futures for August
delivery gained $0.38 or 0.8 percent to $46.40 on the New York Mercantile
Exchange. In London, Brent crude for August delivery ended up by $0.74 at $48.88
a barrel on the ICE.
Continuing
its rising streak for the second straight day, Indian rupee ended slightly
higher against dollar on Tuesday due to sustained selling of the US currency by
exporters and banks. Local currency got some support with private survey stating
that Indian CEOs are confident about the growth prospects of the country over
the next three years, compared to that of global economy. Besides, dollar's
weakness against some currencies overseas supported the rupee, though heavy
losses in the equity market capped the further gain. On the global front,
dollar sank on Tuesday as two Republican senators rejected their party's bill
repealing Obamacare, effectively killing it and throwing Donald Trump's
economic agenda into doubt. Finally, the rupee ended at 64.33, 2 paise stronger
from its previous close of 64.35 on Monday.
The
FIIs as per Tuesday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4567.92 crore against gross selling
of Rs 4192.13 crore, while in the debt segment, the gross purchase was of Rs
1037.17 crore with gross sales of Rs 414.37 crore.
The US markets made another mixed
closing in the last session, trade remained lackluster as traders expressed
uncertainty about the near-term outlook for the markets after the Dow and
S&P 500 reached record highs. The Asian markets have made mostly a positive
start, though some are mildly in red, as investors weighed the potential for
tepid economic growth. The Indian markets slumped in the last session, deposing
over a percent, amid heavy selling in consumer stable stocks after the GST
council increased compensation cess on cigarettes. Today, the start is likely
to be flat-to-green, some recovery can be seen on positive regional cues and
some good domestic earnings announcements. Meanwhile, NITI Aayog Vice Chairman
Arvind Panagariya has said that India's GDP could rise to about $8 trillion
over the next 15 years if the country registers an economic growth of 8 per
cent annually and come very close to eliminating abject poverty entirely.
Traders will also be getting some support with rating agency Fitch's latest
report stating that new indirect tax regime Goods and Services Tax (GST) is
likely to be beneficial for auto, cement and organised retail sectors, but will
have a negative impact on oil and gas, and SME sectors. There will be some buzz
in the pharma stocks, on report that the government is looking at introducing a
new National Pharmaceuticals Policy and is already in the process of working
out details. The oil & gas stocks too will remain in action, as the
government is likely to consider the sale of government's 51.11 per cent stake
in Hindustan Petroleum Corp Ltd (HPCL) to Oil and Natural Gas Corp (ONGC) for
over Rs 28,000 crore. There will be lots of scrip specific actions based on the
June quarter earnings announcements.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9827.15
|
9784.35
|
9877.65
|
BSE Sensex
|
31710.99
|
31587.75
|
31872.92
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ITC
|
1,494.80
|
284.55
|
276.42
|
292.67
|
SBI
|
119.14
|
291.00
|
288.53
|
294.93
|
ICICI Bank
|
117.72
|
303.90
|
301.60
|
306.10
|
Axis Bank
|
78.64
|
516.55
|
509.03
|
523.38
|
Bank of Baroda
|
77.87
|
163.85
|
162.05
|
166.40
|
Tata Motors showcased a class-leading technology innovation- country's first Bio-CNG Bus at the Bio-energy programme, called 'Urja Utsav'.
BPCL is expecting to get environmental approval for its proposed Rs 2 lakh crore mega refinery in the ecologically sensitive Konkan belt and hoping to complete the world's largest refinery complex in four years.
Bharti Airtel has invested more than Rs 30,000 crore in the last two years on boosting its network infrastructure.
Hindustan Unilever has reported marginal rise of 8.45% in its net profit at Rs 1283 crore for Q1FY18 as compared to Rs 1183 crore for the same quarter in the previous year.