Nifty 9,304/ Sensex 29,918/ Bank Nifty 22,358
28 Advances / 23 Declines/ 0 Unchanged
Indian equities decline for second straight session
Indian stock markets have prolonged the weakness for second straight day and finished the session on a dull note, below the neutral lines, as investors booked profits in index heavyweights such as ITC, HDFC, HDFC Bank and Bharati Airtel, after a strong week and ahead of a long weekend. Sentiments remained dismal with the report that private equity investments in the first quarter of this year fell to nearly 3-year low of $2.1 billion in the absence of big ticket deals. According to the report, there was a decline both in terms of value as well as volume of deals and PE investment values dropped to the lowest level in the last 11 quarters. There were 192 PE deals worth $2.1 billion in the January-March quarter, as against 284 such transactions worth $3.02 billion in the year ago period. Leads from the Asian & European counterparts remained highly unsupportive giving no significant direction to the domestic indices, while decline in international crude oil prices too failed to enthuse the local sentiments. Caution also prevailed as market participants were not keen to raise bets at the prevailing record levels despite the start of May F&O series in the derivatives segment. However, losses remained capped with the International Monetary Fund Managing Director's statement that the Goods and Services Tax to be implemented from July 1 would help raise India's medium-term growth to above eight percent, as it will enhance production and the movement of goods and services across Indian states. Meanwhile, people in Uttar Pradesh and in neighbouring Uttarakhand are facing a shortage of cash in banks and ATMs, six months after the old currency notes of Rs 1,000 and 500 were demonetised in the country.
On the global front, Asian markets ended mostly lower on Friday amid renewed jitters over North Korea and conflicting signals from President Donald Trump about US trade policy. Japan's Nikkei share average ticked down further from recent five-week highs as a relief rally driven by fading political worries in Europe fizzled ahead of Golden Week holidays next week. Investors also digested a raft of local economic data, including weak industrial output data. Japan's industrial output fell 2.1 percent in March from the previous month after a 3.2% gain in February, government data showed. Further, first-quarter gross domestic product data out of Britain, France and the United States, are due later in the day. While European markets opened lower, surprisingly strong inflation figures in the region sent the euro and government bond yields climbing. The market-friendly result of the first round of elections in France helped the region's equities start the week strongly, but stocks have given back some of their gains as the week comes to an end.
Back home, after getting a weak start, the local benchmarks continued to trade below neutral line for the entire part of session, but some final hour buying help the indices to end above day's lows. The NSE's 50-share broadly followed index - Nifty plunged by over quarter percent to settle just above the crucial 9,300 support level, while Bombay Stock Exchange's Sensitive Index - Sensex took over hundred points cut and closed above the psychological 29,900 mark. However, broader markets showed some resilience by outclassing their larger peers by a big margin as investors carried forward their value hunting in beaten down shares from the midcap and small cap space.
Is India ready for RERA?
The new real estate act, aimed at bringing transparency and accountability to the sector, is set to take effect on Monday across the country even though significant hurdles in implementing the law remain. Many states are far from ready with the infrastructure and resources to implement it while most builders and real estate agents said they are still struggling to understand the regulations and are in early stages of preparing themselves to comply with the new Real Estate (Regulation and Development) Act (RERA) 2016.
In March 2016, both houses of Parliament passed the real estate bill that ensures transparency and protection of interests of both the buyers and builders. It is a model law, which means it is up to the states to draft and pass their own laws according to the guidelines, as land is a state subject. The centre had asked all states to notify the Act before 30 April. All real estate developers and agents are to register with their respective state regulatory authorities by 30 July.“The expectations from RERA are huge as it will change the way the real estate sector functions but there will be challenges initially. The pain of transition will be there because it’s been a sector which has been under no regulation for so long,” said Chatterjee.
FIIs Activity 28-April-17
The FIIs as per Friday’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 6398.12 crore against gross selling of Rs 6420.92 crore. Thus, FIIs stood as net sellers of Rs 22.80 crore in equities.
In the debt segment, the gross purchase was of Rs 1625.80 crore with gross sales of Rs 731.29 crore. Thus, FIIs stood as net buyers of Rs 894.51 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.
Fresh downside panic will see only close below 9240 mark.
Bank Nifty Levels
Support at 21900 and resistance at 22400
Trend Looks positive and could touch its resistance level of 22400. Close above 22400 will see further upside rally till 22800---23000.
Support at 21900
Today's Top Pick
Sterlite Technologies
About Stock
• Sterlite Tech reported strong numbers in Q4 FY17 driven by robust volume and realization in products business, and traction in services and software business.
• The company reported revenues of INR 7,072 Mn, which grew by 22.9% yoy, as the volume for Optic Fiber (OF) and Optic Fiber Cable(OFC) have increased significantly, as a result the company has decided to go for further expansion.
• Strelite plans to expand OF capacity from 30 Mn fkm to 50 Mn fkm by CY19 in the light of robust demand from end-consumers, and demand & supply glut therein
• Expect immense traction from Services segment (Network Integration and System Integration) due to increase demand from Telecos, ISPs, and Cable Providers, (in terms of FTTH)
Support at 135 and resistance at 155
Trend Looks positive and could touch its resistance level of 155. Close above 155 will take to 176---193+++ mark in days to come else it can touch its support level of 135 again.
Trade in a range with levels only.
Result Today
Marico Limited
More will update soon!!
