Nifty 9,139/Sensex 29,413 / Bank Nifty 21,647
19 Advances / 32 Declines/ 0 Unchanged
Indian equity indices end a lacklustre session with modest cut; broader markets outclass blue-chips
Indian equity markets commenced the week on a sluggish note as the benchmarks showcased an unenthusiastic performance on Monday and settled marginally below the neutral line. The key indices oscillated in an extremely tight range through the session as market participants remained on the sidelines lacking conviction amid the persistent worries over North Korea and coming French elections. Sentiments remained subdued with Reserve Bank of India's report that credit growth plunged to a whopping six-decade low of 5.08% in the financial year 2016-17, as against 10.7% a year ago. Investors also remained cautious with the private report that India's current account deficit (CAD) is expected to widen to 1.6% of GDP this year from 0.5% in 2016, owing to higher commodity prices and an expected strong domestic recovery. According to the report, stronger global demand and higher export prices are driving exports recovery, while the recovery in imports reflects higher commodity prices and likely improvement in domestic demand. Adding the woes, Revenue Secretary Hasmukh Adhia said that services sector is likely to attract a higher tax rate of 18% from the current 15% under the Goods and Services Tax (GST) regime, thus making services "slightly" more expensive. Ha also said Tax buoyancy is likely to take a hit under the GST regime with the government predicting a very modest 8-9% growth in the indirect tax collections in the first year of GST implementation. In the previous fiscal year, indirect tax collections recorded a growth of 22%. However, downside remained capped with the report that Inflation based on the wholesale price index slipped to 5.70% in March due to easing fuel prices and cost decline of manufactured goods even as food prices hardened. Fuel and power inflation rose 18.16% in March from 21.02% last month. The WPI inflation, reflecting the annual rate of price rise, in February was 6.55%. Some support also came with the report that growth in exports of goods from India reached its peak in the last month of fiscal 2016-17 with a 27.59% increase, year-on-year, to $29.23 billion in March 2017. After two continuous years of decline, exports in April-March 2016-17 posted an increase of 4.71% to $274.64 billion compared to the previous fiscal. Meanwhile, India plans to sell stakes worth $5.4 billion in seven state-run companies during the current financial year as Asia's third-largest economy looks to fund its fiscal deficit amid ramped-up spending on rural areas and infrastructure. The part sale of government stakes in state-run and private firms is critical to meet the fiscal deficit target of 3.2% of gross domestic product in the year to March 2018. India aims to raise Rs 725 billion ($11.26 billion) through stake sale during the year.
On the global front, Asian markets ended mostly lower on Monday as worries over tensions on the Korean Peninsula persist following a failed missile launch by North Korea over the weekend. Further, already bruised by worries over upcoming French elections, global investor sentiment took a further hit on weak U.S. economic data. Though a raft of Chinese economic data earlier in the day beat market expectations, they failed to enthuse investors who had already been optimistic following a recent string of positive numbers out of the country. Similarly, strong March export figures from Singapore did little to lift the dour mood following the central bank's cautionary tone last week. Meanwhile, Chinese shares ended lower, as investors dumped stocks across the board after the country's top securities regulator vowed to 'brandish the sword' and combat market misbehaviors’. However, Japan's Nikkei index edged higher despite the strong yen weighing on exporters and weak US yields dragging down financial stocks.
Back home, after getting a cautious start, the local benchmarks slipped into lower level in late morning trade, tracking weak trade in other regional markets. Thereafter, the indices kept oscillating in a narrow range through the day's trade. Finally, the NSE's 50-share broadly followed index Nifty, suffered eleven points cut to settle below the crucial 9,150 support level, while Bombay Stock Exchange's Sensitive Index, Sensex slipped by around fifty points and closed below the psychological 29,450 mark. However, broader markets managed to outperform the larger peers as the BSE's midcap and small cap indices settled with moderate gains. Meanwhile, shares of Tractor and construction equipment makers have come under pressure on the report that transport offices in most states refused to register these vehicles after the Supreme Court order, which stopped sales of vehicles meeting only BS-III emission standards. The order was not meant for tractors and heavy construction vehicles, which have different emission norms.
FII’s Activity 17-April-17
The FIIs as per Monday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3233.02 crore against gross selling of Rs 3545.28 crore. Thus, FIIs stood as net sellers of Rs 312.26 crore in equities.
In the debt segment, the gross purchase was of Rs 2180.08 crore with gross sales of Rs 412.55 crore. Thus, FIIs stood as net buyers of Rs 1767.53 crore in debt.
Now what to expect??
Nifty Levels
Support at 9080 and Resistance at 9330--9380.
Above 9250 will see upside rally till 9290 and then to 9330--9380 mark else we will see sharp downside panic in it.
Bank Nifty Levels
Support at 21400 and resistance at 21920
Trend Looks positive and could touch its resistance level of 21920. Close above 21920 will see further upside rally in it else could touch its support level of 21400 again.
Trade in a range with levels only.
Today's Top Pick
Today's Top Pick we will update during market hours.
Result Today
Tata Consultancy Services Limited
More will update soon!!
