Bulls were on a run during
Tuesday's trading session, with the both Indian equity indices, the Sensex and
the Nifty, closing the day higher by smart gains of 482 and 133, respectively.
Key indices made a fabulous start, aided by a private report stating that
hiring activities registered 16 per cent growth this February mainly led by the
IT and software industry that clocked a 38 per cent growth. The Naukri JobSpeak
Index for February 2019 stood at 2,415 from 2,087 in February 2018. Adding
optimism among the market participants, the Cotton Textiles Export Promotion
Council (TEXPROCIL) Chairman K.V. Srinivasan said that rebate of state and
central taxes will improve the competitiveness of made ups products in the
export markets. Buying also crept in with a report that key policymakers from
India and African nations will brainstorm on strategies for scaling up
bilateral trade volume to $150 billion in the next few years at the
India-Africa Project Partnerships Conclave. Domestic Sentiments remained upbeat
throughout the day, with a report stating that in a major overhaul of oil and
gas exploration permits, the government will not charge any share of profit on
hydrocarbons produced from less explored areas as it looks to attract the
elusive private and foreign investment to raise domestic output. Positive cues
from the global markets also supported the rally. Investors took a note of the
report that the Reserve Bank of India's (RBI) board, which included the present
Governor Shaktikanta Das as a director, had warned of short-term negative
impact of demonetisation on the country's economic growth and observed that the
unprecedented move will not have any material impact on tackling the black
money menace. Finally, the BSE Sensex gained 481.56 points or 1.30% to
37,535.66, while the CNX Nifty was up by 133.15 points or 1.19% to 11,301.20.
The US markets ended mostly
higher on Tuesday on reports that indicated progress on a Sino-American trade
deal, with China and the US reportedly close to a deal on currencies-an element
in their broader trade dispute. Some support also came in after reporting no
change in consumer prices over the past few months. The Labor Department
released a report showing a modest increase in US consumer prices in the month
of February. The report said the consumer price index rose by 0.2% in February
after coming in unchanged for three straight months. The uptick in consumer
prices matched street estimates. The increase in consumer prices was partly due
to a rebound in gasoline prices, which surged up by 1.5% in February after
plunging by 5.5% in January. The jump in gasoline prices contributed to a 0.4%
rebound in energy prices, which matched the increase in food prices. Excluding
food and energy prices, core consumer prices inched up by 0.1% in February
after rising by 0.2% in January. However, the Dow Jones Industrial Average
closed lower as shares of Boeing Company came under heavy pressure following a
fatal crash over the weekend of a 737 Max aircraft. The continued drop by
Boeing came after the European Union, China, the UK and other countries
grounded the company's 737 MAX jets following the second crash in less than 6
months. The markets shrugged off the UK Parliament's rejection of Prime
Minister Theresa May's Brexit deal, in part, as the outcome had been
anticipated. Lawmakers will now have to decide whether they want a Brexit
without a deal or possibly extend the March 29 deadline for leaving the
European Union. S&P 500 gained 8.22 points or 0.30 percent to 2791.52 and
Nasdaq was up by 32.97 points or 0.44 percent to 7591.03, while Dow Jones
Industrial Average declined 96.22 points or 0.38 percent to 25554.66.
Crude oil futures ended higher
for second straight day on Tuesday on signs of a supply crunch lingered and
traders assessed the latest output forecasts. The Energy Information
Administration (EIA) trimmed its forecasts for US crude production for this
year and next, but both years are still on track for new production records. For
2020, the EIA cut its US oil output forecast by 1.3% to 13.03 million barrels a
day. The March forecast expects the United States to become a net exporter of
crude oil and petroleum products in 2020. Benchmark crude oil futures for April
added 8 cents or 0.1 percent to settle at $56.87 a barrel on the New York
Mercantile Exchange. May Brent crude gained 9 cents or 0.1 percent to settle at
$66.67 a barrel on London's Intercontinental Exchange.
Extending
gains for the second straight session, Indian rupee ended stronger against
dollar on Tuesday, on account of selling of American currency by banks and
exporters. Traders took encouragement with a private report stating that hiring
activities registered 16 per cent growth this February mainly led by the IT and
software industry that clocked a 38 per cent growth. The Naukri JobSpeak Index
for February 2019 stood at 2,415 from 2,087 in February 2018. Besides, weakness
in the dollar against some other currencies overseas along with good going in
the local equity markets supported the rupee. However, local unit cut most of
the early gains, as anxiety remained among the traders ahead of macroeconomic
data such as Index of Industrial Production (IIP) and Consumer Price Index
(CPI) to be announced after the market hours. On the global front, dollar fell
on Tuesday after an apparent breakthrough in Brexit negotiations between the
European Union and Britain encouraged buying of riskier currencies. Finally,
the rupee ended at 69.71, 18 paise stronger from its previous close of 69.89 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 8104.46 crore against gross selling of Rs 4651.59 crore, while
in the debt segment, the gross purchase was of Rs 1536.52 crore with gross
sales of Rs 462.04 crore. Besides, in the hybrid segment, the gross buying was
of Rs 3.10 crore against gross selling of Rs 4.54 crore.
The US markets ended mostly
higher on Tuesday, taking cues from global stocks which rose after last-minute
tweaks to Britain's deal to leave the European Union that eased some fears of a
no-deal Brexit. Asian markets are trading mostly in red on Wednesday amid
reports that British Prime Minister Theresa May's Brexit plan was soundly defeated
by lawmakers. Indian equity markets extended their gains for second straight
session on Tuesday tracking positive trends in global markets and improved
domestic sentiments amid overseas fund inflows. Today, the markets are likely
to make cautious start amid weak macro-economic data coupled with mixed cues
from global markets. On the domestic economic front, the latest data from
Central Statistics Office (CSO) showed that India's Index of Industrial
Production (IIP) slipped to 1.7% in January from 7.5% a year ago. Subdued
performance of the manufacturing sector, especially capital and consumer goods,
mainly pulled down the growth in industrial production. Besides, Retail
inflation rose to four-month high of 2.57% in February, mainly driven by higher
food prices. Consumer Price Index (CPI) stood at 1.97% in January and 4.44% in
February 2018. Food inflation based on CPI was in negative at 0.66% in February
2019. However, some support may come later in the day with the Reserve Bank of
India's (RBI) statement that it would infuse Rs 12,500 crore into the system
through open market operations (OMOs) on March 14. Based on an assessment of
prevailing liquidity conditions and also of the durable liquidity needs going
forward, the RBI has decided to conduct purchase of the government securities
under OMOs. Traders may take note of IT industry body Nasscom's report that
public sector firms across half of the states along with the banking and
financial sector are driving blockchain adoption in the country. Meanwhile, markets
regulator SEBI has withdrew the 20% limit on investments by Foreign Portfolio
Investors in corporate bonds of an entity. In a notification, the regulator
said the restriction is being withdrawn in accordance with a circular issued by
the Reserve Bank of India (RBI). There will be some buzz in the media and
entertainment (M&E) industry stocks with Ficci-EY report stating that the
M&E industry is expected to cross the Rs 2.35-lakh-crore mark (around $
33.6 billion) by 2021, clipping at 11.6% annually. There will be some reaction
in electricity distribution companies stocks with ICRA's report that inadequate
revision of rates along with delay in filing tariff petitions are likely to
remain an area of concern in fiscal 2020 for distribution companies (Discoms).
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,301.20
|
11,245.33
|
11,338.73
|
BSE Sensex
|
37,535.66
|
37,315.46
|
37,671.24
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ICICI Bank
|
371.08
|
388.20
|
380.70
|
392.35
|
Bharti Airtel
|
271.01
|
351.80
|
336.10
|
360.75
|
Yes Bank
|
221.01
|
235.85
|
234.17
|
238.37
|
SBI
|
208.28
|
286.90
|
285.13
|
289.28
|
NTPC
|
194.29
|
151.25
|
148.85
|
155.00
|
L&T's arm - L&T Construction's Power Transmission and Distribution business has bagged a number of Engineering, Procurement and Construction orders in India and abroad.
ITC's biscuit brand -- Sunfeast Dark Fantasy has collaborated with Fresh Menu for an exclusive dessert range.
Tata Motors has bagged orders for over 2,500 commercial passenger transportation vehicles from various institutional customers and the company is in the process of delivering these units.
JSW Steel has reported Crude Steel production at 12.57 LT for February 2019, registering a fall of 6% over corresponding month of previous year.