Nifty 9153/Sensex 29585/ Bank Nifty 21249
46 Advances / 5 Declines/ 0 Unchanged
Benchmarks stage splendid performance; Nifty surpasses 9,150 mark
Thursday turned out to be a fabulous day of trade for Indian equity markets, where frontline gauges garnered a gain of over half a percent as US Federal Reserve Chair Janet Yellen made the well-anticipated move of increased rates by 25 bps in its effort to return monetary policy to a more normal footing. After making a gap-up opening, domestic bourses traded in tight band throughout the day’s trade as traders also took some encouragement with reports of India's exports exhibiting a double digit growth of 17.48 percent, valued at $ 24.5 billion in February compared to $ 20.84 billion during the same month last year on increase in shipments of non-petroleum, non-gems and jewellery products.
Some support also came with report that the GST Council is likely to endorse supplementary legislations needed for implementation of the goods and service tax (GST) regime. It may also take up capping the cess to be levied on demerit goods like luxury cars and tobacco products for creation of a corpus that will be used for compensating states for any loss of revenue from GST implementation in the first five years. Also, the International Monetary Fund (IMF) enlightened that India’s economic growth is expected to pick up once the effects of cash shortages linked to the currency exchange initiative fade. IMF in its note highlighted that further subsidy reduction and tax reforms, including a robust design and full implementation of the Goods and Services Tax (GST), are necessary to attain medium-term fiscal consolidation plans.
Positive global cues too aided sentiments with European counters making a firm start, hitting their highest level in 15 months in early deals. Asian markets rallied on Thursday after the Fed stuck to its outlook for two additional rate increases this year after lifting its overnight interest rate by 25 basis points on Wednesday as had been expected.
Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. On the sectorial front, banking shares remained on buyers’ radar as the Finance Minister Arun Jaitley said, the government would consider setting up multiple oversight committees under the Reserve Bank of India (RBI) to examine the cases of non-performing assets (NPAs) referred by banks. Stocks related to infrastructure space too edged higher with private report stating that India's transport infrastructure will grow at higher rates over the next five years on account of a string of measures, including increased spending on road and rail projects. It added that other factors that will propel growth rates include reform measures and new policies, encouraging private participation.
Trump Plans Historic Cuts Across Government to Fund Defense
President Donald Trump is proposing historically deep budget cuts that would touch almost every federal agency and program and dramatically reorder government priorities to boost Defense and security spending, although it’s likely to face a fight in Congress.
The president’s fiscal 2018 budget request, which will be formally delivered Thursday to U.S. lawmakers, would slash or eliminate many of the Great Society programs that Republicans have for decades tried to peel back while showering the Pentagon and Department of Homeland Security with new resources.
Some of the deepest cutbacks are reserved for the agencies and programs Trump has often derided. The State Department would be hit with a 28 percent reduction below fiscal 2016 levels that mainly targets international aid and development assistance; the Environmental Protection Agency would face a 30 percent reduction. Also in the crosshairs are agriculture programs, clean energy projects and federal research funding.
“You see reductions in many agencies as he tries to shrink the role of government, drive efficiencies, go after waste, duplicative programs,” Office of Management and Budget Director Mick Mulvaney told reporters Wednesday.
Lawmakers Resist
Trump’s proposal for $1.15 trillion in federal discretionary funding for fiscal year 2018 is certain to face vigorous opposition from lawmakers in both parties who will resist chopping favoured programs, whether foreign aid, rural water projects, or development grants for Appalachia and the Mississippi Delta. In addition to a solid wall of opposition from Democrats, senior Republicans including Senate Majority Leader Mitch McConnell have raised objections to specific agency cuts even before the budget request went to the Capitol.
FII’s Activity 16-March-17
The FIIs as per Thursday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 6066.88 crore against gross selling of Rs 4648.77 crore. Thus, FIIs stood as net buyers of Rs 1418.11 crore in equities.
In the debt segment, the gross purchase was of Rs 580.32 crore with gross sales of Rs 386.16 crore. Thus, FIIs stood as net buyers of Rs 194.16 crore in debt.
Now what to expect??
Nifty Levels
Support at 9050 and Resistance at 9218---9248.
Looks positive and could touch its Resistance level of 9218---9248. Further upside rally will see only close above 9248 mark else could touch its support level of 9050 again.
Fresh selling can be initiated below 9050 mark.
Bank Nifty Levels
Support at 21000 and resistance at 21500
Looks positive and could touch its resistance level of 21500. Further upside rally will see only close above 21500 else could test its support level of 21000 again.
Trade with levels only.
More will update soon!!
