Nifty 9,427 /Sensex 30,464 / Bank Nifty 22,769
19 Advances / 32 Declines/ 0 Unchanged
* Indian benchmarks erase early gains to close flat*
Indian equity indices scuttled between gains and losses to finally settle the day on flat note as 2-day GST Council meet ended where rates for various goods and services were decided. According to many experts, the multi-tiered GST may not be inflationary as far as goods are concerned as 81% of them will be taxed at 18% or less with mass-consumption items at the lower end of the bands. Items like milk, fruit and vegetables, jaggery, food grain and cereals getting exemption from GST, while items like sugar, tea, coffee, edible oil, mithai, and newsprint will attract the lowest GST of 5%. However, those who were planning to buy a new car could be forced pay more after July 1 as most vehicles fall in the higher tax basket. Also, Motorcycles of more than 350 cc engine capacity will attract a total of 31% tax under the GST regime, same as the tax incidence on private aircraft and luxury yachts. Some product like local made Mobiles phones might also get costlier, with the government imposing a 12% GST, taking away the benefit under duty differential that was being offered to local manufacturers.
The session largely remained characterized by choppiness as the aimless indices moved only sideways in a tight band as investors were evaluating the impact of GST on various product and services before adding new positions. The GST rates on telecom, financial services have been fixed at 18%, while healthcare and education were exempted from service tax. Decision is yet to be made on gold, silver and other goods. Adding to the optimism among investors, Union Minister Arjun Ram Meghwal said, the decision to implement GST from this July 1 is one of the important economic reforms and would be a major milestone in the growth of the country. He also said that demonetization had helped improve the GDP of the country despite apprehensions to the contrary from certain quarters, noting that the growth has gone up and would reach 10%. Meanwhile, Narendra Modi government has set an ambitious target of awarding Rs 5 lakh crore worth of highway contracts, totaling about 50,000 km, in the last two years of its tenure, surpassing the cumulative road length awarded for paying in the last five years.
On the global front, Asian equity markets ended mostly higher on Friday as better-than-expected US economic data and higher oil prices offset concerns surrounding deepening political turmoil in Washington and the Brazilian political crisis. The number of Americans on unemployment fell mid-May to the lowest level since 1988, underscoring the strongest labor market in years. So-called continuing claims, or the number of people collecting jobless benefits, fell by 22,000 to 1.9 million in early May. Further, Chinese shares were little changed, as soothing regulatory comments and the central bank's injection offset worries over tighter regulations and economic growth. Official data showed foreign direct investment into China decreased 4.3% from last year in April. Meanwhile, fears have been growing that given his political troubles Trump may run into difficulties in enacting tax cuts and other business-friendly policies.
Back home, after gap up opening, the local benchmarks showed some strength in early trades, but the sentiments turned pessimistic in late morning trade and indices started drifting lower, however the markets regained their momentum in the final hour of trade and finished the day on flat note. Finally, Bombay Stock Exchange’s Sensitive Index, Sensex gained around thirty points and closed above the psychological 30,400 mark, while the NSE's 50-share broadly followed index - Nifty settled with modest cut of around two points below the psychological 9,450 levels. The broader markets underperformed their larger peers by quite a margin with BSE’s midcap shaving off 0.72% and BSE’s small cap shelving 0.88%. The market breadth remained pessimistic, as there were 957 shares on the gaining side against 1789 shares on the losing side, while 165 shares remained unchanged.
FII’s Activity 19-May-17
The FIIs as per Friday’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 5969.89 crore against gross selling of Rs 5610.17 crore. Thus, FIIs stood as net buyers of Rs 359.72 crore in equities.
In the debt segment, the gross purchase was of Rs 927.57 crore with gross sales of Rs 368.26 crore. Thus, FIIs stood as net buyers of Rs 559.31 crore in debt.
Now what to expect next??
Nifty Levels
Yesterday we have seen bullish momentum in Nifty, surging to fresh highs. In the second half, this rally received a sudden jerk.
Now what to expect???
Support at 9350 and Resistance at 9550.
Below 9425 will see further downside panic till 9380---9350 mark. More downside panic will see only close below 9350 level only else it could test its resistance level of 9480---9550 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 22356 and resistance at 23177
Below 22631 will see further downside panic till 22562---22493---22356 mark. More downside panic will see only close below 22356 level else it could test its resistance level of 22972---23177 again.
Results Today
Bank of India
SRF Limited
Engineers India Limited
Godrej Industries Limited
GAIL (India) Limited
More will update soon!!
