Nifty 9,108/Sensex 29,421/ Bank Nifty 21122
22 Advances / 29 Declines/ 0 Unchanged
Indian benchmarks extend gain for second straight session; Nifty ends above 9100 mark
Indian equity benchmarks carried forward their northbound journey for yet another session on Friday, as lenders such as SBI surged after Finance Minister Arun Jaitley promised a solution to the growing NPA problem within next few days. Jaitley also said the government is keen to roll out the GST on July 1 and other aspects like bringing petroleum and land under its ambit will be considered after the first year of implementation of the new system of indirect tax collection. Further, mutual fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all-time high of over Rs 1.2 lakh crore at the end of February, primarily on account of cheaper valuations. Meanwhile, some support also came with the report that EPFO trustees will meet on March 30 to discuss whether to increase its investments in ETFs to 15% of investible deposits in 2017-18, from the current 10%. Investors also got some comfort with External Affairs Minister Sushma Swaraj's statement that there was no reason to worry about the curbs on H1B visas or the job security of Indian IT professionals working in the US for the time being, as the Indian government was in talks with the US regarding this. Furthermore, strengthening of rupee against the dollar also supported the sentiments.
However, gains remained capped on the report that the current account deficit (CAD) widened to $ 7.9 billion or 1.4% of GDP in the October-December quarter on account of higher trade deficit. Also, the Reserve Bank reported that the country added $ 14.2 billion in foreign exchange reserves on the balance of payment basis during the first nine months of the outgoing financial year, which is marginally down from $ 14.6 billion accretions in the year-ago period.
On the global front, Asian equity markets ended mostly higher on Friday, though most of the investors await a delayed vote on US healthcare reform, which is seen as a proxy for the success of Donald Trump's pro-growth agenda. Japanese market ended higher as the yen weakened against the dollar and banks posted strong gains after recent selling. The latest survey from Nikkei revealed that activity in Japan's manufacturing sector continued to expand in March, albeit at a slower rate, with a PMI score of 52.6, down from 53.3 in February.
Further, Chinese shares rose as strong gains in the infrastructure sector offsetting concerns over tightening liquidity in the country's banking system, increased regulation and fresh curbs on property investment. Meanwhile, European stocks fell for the third time in four days, moving further away from a 15-month high they reached just a week ago.
Back home, after getting a firm start, the local indices soon capitalized on the momentum and touched intraday highs in late morning session. However, the indices failed to hold onto the highs and receded to intraday lows in late afternoon trades post weak European market opening and on reports that widespread adoption of Aadhaar numbers and linkages to Unique Identification (UID) programme databases for authenticating sensitive transactions should give pause to India's foreign policy and military planners. Eventually, the NSE's 50-share broadly followed index Nifty, got buttressed by around quarter percent to settle above the crucial 9,100 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated around hundred points and closed above the psychological 29,400 mark. The market breadth remained pessimistic, as there were 1345 shares on the gaining side against 1474 shares on the losing side, while 217 shares remained unchanged.
FII’s Activity 24-March-17
The FIIs as per Friday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5976.95 crore against gross selling of Rs 4880.08 crore. Thus, FIIs stood as net buyers of Rs 1096.87 crore in equities.
In the debt segment, the gross purchase was of Rs 408.55 crore with gross sales of Rs 946.11 crore. Thus, FIIs stood as net sellers of Rs 537.56 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9050---8980 and Resistance at 9170--9248.
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---8980 again.
Trade in a range with levels only.
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