Nifty 9,604 /Sensex 31,109 / Bank Nifty 23,182
25 Advances / 26 Declines/ 0 Unchanged
Indian benchmarks close at record highs; Nifty breaches 9600 mark
Indian equity indices carried forward their northbound journey for yet another session on Monday, and ended at fresh closing highs, while the midcap and small cap indices snapped two-session long rally to finish lower. Most of the investors remained on the sidelines and refrained from any buying activity, keeping a close tab on the arrival of monsoon rains, which is expected to hit the southern Kerala coast by the end of the month. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation. On the macro front, the government will announce data on Q4 March 2017 gross domestic product (GDP) on May 31, 2017.
Sentiments remained optimistic with the Employees Provident Fund Organization (EPFO) approving hike in investment limit in exchange traded funds (ETFs) to 15%, from the existing 10%. The decision was taken during the meeting of the Central Board of Trustees (CBT) here on Saturday. Some support also came with the report that foreign investors have pumped in nearly $4 billion in the country’s capital market so far this month due to finalization of GST rates for bulk of the items and stable outlook for the rupee. According to latest depository data, FPIs invested a net Rs 9,007 crore in equities during May 2-26, while they poured Rs 15,769 crore in the debt markets during the period under review, translating into a net inflow of Rs 24,776 crore ($3.85 billion). Meanwhile, banking stocks came under pressure after Arun Jaitley said that poor performance by private investors and banks still remains a challenge for the Indian economy. He also said the banks have to recover their bad loans to boost private investment, as domestic private investment needs to pick up. Further, Healthcare index (BSE) witnessed a sharp drag, after Sun Pharmaceutical Industries fell as much as 13.2% to a near four-year low after the company on Friday reported a 14% fall in March-quarter profit. The company said its US sales may fall this year on lower drug prices.
On the global front, Asian markets ended mostly lower on Monday, after opinion polls showed a shrinking lead for British Prime Minister Theresa May in upcoming elections and North Korea test-fired another short-range ballistic missile early Monday. Investor sentiment was also dampened after leaders of the G7 group of rich nations failed to make progress on narrowing differences on climate change. Trading volumes remained thin across the region amid holidays in China, Britain and the United States. Meanwhile, European markets were trading mixed in early trade, as investors waited for key US economic indicators out this week, including employment data, to provide clues on how soon US interest rates might rise.
Back home, after trading in a tight range for most part of the session, the local benchmarks managed to end of trade in positive terrain. The NSE’s 50-share broadly followed index Nifty, added single digit gains to settle above the crucial 9,600 support level, while Bombay Stock Exchange’s Sensitive Index or Sensex gained around eighty one points and ended above the psychological 31,100 mark. However, the broader markets succumbed to the selling pressure and went home with large cuts of over a percent. On the BSE sectoral space, the FMCG counter remained the top gainer in the space with over one and half a percent gains followed by the Auto pocket, which gained close to half a percent. On the flipside, Realty counter languished at the bottom of the table with large cuts of over four percent while the Healthcare, IT and PSU sectors settled with cuts of over a percent.
The market breadth remained pessimistic, as there were 860 shares on the gaining side against 1798 shares on the losing side, while 193 shares remained unchanged.
Finally, the BSE Sensex gained 81.07 points or 0.26% to 31109.28, while the CNX Nifty was up by 9.80 points or 0.10% to 9,604.90.
FII’s Activity 29-May-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 4493.86 crore against gross selling of Rs 4809.96 crore. Thus, FIIs stood as net sellers of Rs 316.10 crore in equities.
In the debt segment, the gross purchase was of Rs 2788.85 crore with gross sales of Rs 861.19 crore. Thus, FIIs stood as net buyers of Rs 1927.66 crore in debt.
Now what to expect??
Nifty Levels
Support at 9480 and resistance at 9640
Above 9640 will see further upside rally till 9682---9729 mark else it could test its support level of 9480 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 22939 and resistance at 23761
Above 23385 will see further upside rally till 23448---23585 and then to 23761 mark. More upside rally will see only close above 23761 level else it could test its support level of 23061---22939 again.
Results Today
Apollo Hospitals Enterprise Limited
Tata Global Beverages Limited
Steel Authority of India Limited
The Ramco Cements Limited
PVR Limited
NHPC Limited
Rural Electrification Corporation Limited
Mahindra & Mahindra Limited
IRB Infrastructure Developers Limited
Max Financial Services Limited
United Spirits Limited
Jet Airways (India) Limited
Hindalco Industries Limited
Housing Development and Infrastructure Limited
Infibeam Incorporation Limited
Godfrey Phillips India Limited
GMR Infrastructure Limited
More will update soon!!
