Nifty 9,313/Sensex 29,921 / Bank Nifty 22,341
24 Advances / 27 Declines/ 0 Unchanged
* Indian markets settle with paltry gain*
After trading on a feeble note for most part of the session, Indian equity indices managed to negotiate a close in the green terrain, breaking the two-session downtrend, as investors showed renewed buying interests in Realty, Consumer Durables and Oil & Gas counters. Sentiments remained muted with the UN report indicating that India is expected to clock 7.1% growth this year before edging up to 7.5% in 2018, and warned that the country faces heightened risks related to the concentration of bad loans in the public sector banks. Inflation is projected to reach 5.3% to 5.5% in 2017 and 2018. The report also warned that the rise in protectionism put economic growth in Asia Pacific at risk and urged countries in the region to improve governance and fiscal management to bolster development. Further, investors' confidence improved on the report that Factory output increased for the fourth straight month in April 2017. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) - compiled by Nikkei and research firm Markit - remained at 52.5 in April, same as that recorded in March. A reading above 50 on the index denotes expansion, while that less than 50 indicates contraction. Stronger growth in new orders and improving demand conditions were some of the key factors behind the expansion in manufacturing activity in April. Furthermore, some support also came with Prime Minister Narendra Modi's assertion that India was never a more promising investment destination than it is today. He said that today, Indian economy is the fastest growing major economy in the world. In addition to maintaining this pace, our focus is to remove the inefficiencies from the system. Meanwhile, closing the fiscal year on a high, the index of eight core industries rose by 5% in March, a three-month high, led by double-digit growth in steel and coal sectors. The core industries grew by a mere 1% in February this year, and 9.3% in March 2016.
On the global front, Asian markets ended mostly higher on Tuesday, helped by rising optimism on the technology industry and easing concerns over North Korea, while the dollar edged up to one-month high versus the yen. Further, the US Federal Reserve begins its two-day monetary policy meeting later today, with many expecting the US central bank to leave interest rates unchanged. However, weaker than expected China manufacturing data appeared to have a muted impact. China's factory sector lost momentum in April, with growth slowing to its weakest pace in seven months as domestic and export demand faltered and commodity prices fell. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 50.3 in April, missing economist forecasts' of 51.0 and a significant decline from March's 51.2. Meanwhile, Wall Street climbed on Monday, boosted by gains in Apple and other big tech stocks that more than offset weak economic data and pushed the Nasdaq Composite to another record high. Investors bought stocks and sold bonds and gold after Congress agreed to a deal that will keep the government operating for the rest of the fiscal year, averting a shutdown, so they bought riskier stocks and sold government bonds, gold, and high-dividend stocks.
Back home, after getting a strong start, the local benchmarks slipped into red in late morning session on profit booking in frontline blue-chip stocks ahead of a Federal Reserve meeting this week, a U.S. jobs report on Friday and the final round of the French presidential election on Sunday. The frontline indices kept losing steam thereafter and even drifted to the lowest point in the session in mid-morning trades. But the indices managed to pare most of the losses in late afternoon trades on the report that Uttar Pradesh cabinet approved the GST Bill ahead of introducing it in the forthcoming assembly session so that the new tax regime could be rolled out from July 1, 2017. In another cabinet decision, all manual tendering will be done away with in Uttar Pradesh within the next three months and it would be replaced by e-tendering and e-procurement process. Finally, the NSE's 50-share broadly followed index Nifty, added single digit gains to settle above the crucial 9,300 support level, while Bombay Stock Exchange's Sensitive Index or Sensex gained around three points and ended below the psychological 30,000 mark. Moreover, broader markets showed some resilience by outclassing their larger peers by a big margin. On the BSE sectorial space, Realty counter remained the top gainer in the space with over two percent gains followed by the high beta- Consumer Durables index, which ended with over a percent gains. On the other hand, the Telecom index slipped by over a percent followed by Healthcare, Metal and Capital Goods counters, which too settled with over half a percent losses.
FII’s Activity 02-May-17
The FIIs as per Tuesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 4607.38 crore against gross selling of Rs 5720.91 crore. Thus, FIIs stood as net sellers of Rs 1113.53 crore in equities.
In the debt segment, the gross purchase was of Rs 139.39 crore with gross sales of Rs 421.96 crore. Thus, FIIs stood as net sellers of Rs 282.57 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9240 and resistance at 9380---9450.
Above 9330 rally remain continue till 9380---9450 mark
Fresh selling can initiate only close below 9240 only.
Bank Nifty Levels
Support at 21800 and resistance at 22500
Trend Looks positive and could touch its resistance level of 22500. Close above 22500 will see upside rally in it else could touch its support level of 21800 again.
Trade in a range with levels only.
Results Today
Dewan Housing Finance
Corporation Limited
ICICI Bank Limited
Ajanta Pharma Limited
More will update soon!!
