Nifty 9,086/Sensex 29,332/ Bank Nifty 20941
40 Advances / 10 Declines/ 1 Unchanged
Indian markets convalesce; Sensex ends above 29300 mark
A session after witnessing a distressing performance, Indian equity indices have managed to pull through an amazing performance by gaining over half a percent on Thursday, thanks to firm global cues. Sentiments got a boost with Finance Minister Arun Jaitley’s statement that India’s GDP can grow by 7-8 percent if the global economy picks up. He also said the government is hopeful of implementing from July 1 the Goods and Service Tax (GST) to help check tax evasion. The Government is likely to table four GST supplementary legislations in Parliament today. The four Bills are the Central Goods and Services Tax Bill 2017, the Integrated Goods and Services Tax Bill 2017, the Union Territory Goods and Services Tax Bill 2017 and the Goods and Services Tax (Compensation to the States) Bill 2017. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 356.64 crore on March 22, 2017. Further, terror attack in UK, which is said to have taken five lives and left at least 40 injured has limited impact on Indian financial markets. On the domestic front, Investors turned cautious after Reserve Bank of India raised concerns over farm loan waiver as it undermines credit discipline. This observation comes in the context of the likelihood of the newly elected BJP-government in Uttar Pradesh making good its election promise of waiving farm loans and the Opposition in Maharashtra piling pressures on the BJP-Sena government to waive farm loans. According to a recent SBI report, the total outstanding credit (2016) for agriculture sector was Rs 86,241.20 crore in Uttar Pradesh with average ticket size of Rs. 1.34 lakh. Meanwhile, Realty stocks gained traction as the government announced a credit-linked interest subsidy (CLSS) scheme for home loans, leading to savings of more than Rs 2 lakh, or up to Rs 2,000 on EMIs.
On the global front, Asian equity markets ended mostly higher on Thursday as investors continued to monitor developments surrounding U.S. President Donald Trump's pro-growth agenda. Expectations of a big economic stimulus in the world's largest economy have helped fuel a global rally in equity markets. Japanese market edged higher as a weaker yen helped offset news that the head of a Japanese school at the heart of a political scandal received a donation of one million yen from Prime Minister Shinzo Abe's wife in 2015. Further, Chinese markets ended higher, despite investor worries over tight liquidity in the interbank market and increased regulatory scrutiny weighing heavily on B shares.
Back home, after getting a positive start, the local indices soon gathered momentum and traded with around half a percent gains through the morning session of trade. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session’s highest levels in dying moments. Finally, the NSE’s 50-share broadly followed index Nifty, got buttressed by over half a percent to settle above the crucial 9,050 support level, while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated over one hundred and fifty points and closed above the psychological 29,300 mark. Moreover, the broader markets too participated in the rally and closed with gains of around a percent. The market breadth remained optimistic, as there were 1687 shares on the gaining side against 1112 shares on the losing side, while 204 shares remained unchanged.
FII’s Activity 23-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 6619.87 crore against gross selling of Rs 6409.30 crore. Thus, FIIs stood as net buyers of Rs 210.57 crore in equities.
In the debt segment, the gross purchase was of Rs 5617.88 crore with gross sales of Rs 572.78 crore. Thus, FIIs stood as net buyers of Rs 5045.10 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9050---8970 and Resistance at 9155.
Above 9155 will see upside rally till 9218---9248 mark. More and more upside rally will see only weekly close above 9248 else it could test its support level of 9050---8970 again.
Trade in a range with levels only.
Today's Top Pick
Kolte-patil Developers
Support at 155 and Resistance at 165
Weekly close above 165 will see sharp upside rally till 178---184+++ mark in days to come.
Looks weak only if close below 155
More will update soon!!
