Nifty 9,509 /Sensex 30,301 / Bank Nifty 23,190
42 Advances / 9 Declines/ 0 Unchanged
Indian benchmarks display spirited performance; Sensex rallies over 400 pts
The May series futures and options expiry session turned out to be an action-packed event for the Indian equity indices, as they staged a smart intraday rally and even went ahead to conquer the psychological 9,500 (Nifty) and 30,700 (Sensex) levels. Investors continued to build hefty positions across the board as sentiments got a boost after Cabinet approved dismantling of the two-decade-old Foreign Investment Promotion Board (FIPB) and defined a new mechanism to approve overseas investment applications and hasten fund flows. The move will avoid the need for multiple clearances. It also approved the much-awaited strategic partnership policy for defense manufacturing and a new government procurement policy that will give preference to local goods. Besides, fresh spell of buying by foreign investors who were net sellers for several sessions, further recovery in the rupee, and roll over of position in F&O market, also contributed to the gains. The markets paid no heed to the industry body Assocham’s statement that implementing GST from July 1 will be a challenge for the industry and the government should consider relaxing penal provisions for a couple of quarters to help it comply with the new tax regime. Meanwhile, Pharmaceutical stocks have continued their downfall, posting losses for the second consecutive session. In scrip specific development, Lupin hogged the limelight with the stock hitting its lowest level since August 2014 after the company’s quarterly net profit nearly halved to Rs 380 crore in March quarter (Q4FY17) from a year ago. On the other hand, shares of private sector banks were in focus with Nifty Bank and Nifty Private Sector Bank indices hitting their respective record highs after a strong run-up in ICICI Bank, HDFC Bank, YES Bank and IndusInd Bank.
On the global front, Asian markets ended higher on Thursday after the US Federal Reserve signaled a cautious approach to future rate hikes and the reduction of its $4.5 trillion of bond holdings. Investors are looking ahead to an OPEC meeting later in the day, which is widely expected to extend output cuts. Japanese market edged higher after the yen weakened in Asian trade, while a surge in index-heavyweights such as Softbank supported sentiments. In China, stocks are rallying a day after Moody's Investors Service reduced its rating on the country amid concerns over rising debt and slowing economic growth. Meanwhile, European shares opened higher, but quickly dipped into negative territory.
Back home, the benchmark got off to a rollicking opening, as investors rejoiced after the Federal Reserve hinted at a cautious, gradualist approach to future rate increases. Thereafter, the frontline indices slowly but steadily started gathering steam and surged by around half a percent by late morning trades. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session's highest levels in dying moments. Finally, the NSE's 50-share broadly followed index Nifty got buttressed by over one and half a percent to settle above the crucial 9,500 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated over four hundred points and closed above the psychological 30,700 mark. Moreover, the broader markets too participated in the rally and closed with gains of over a percent. On the BSE sectorial space, the Capital Goods index soared by over three percent being the top gainer, followed by the rate sensitive Banking and Industrials counters too gained good traction and went home with over two percent gains. On the flipside, the Healthcare and Consumer Durables sectors languished at the bottom of the table with losses of 1.76% and 0.11% respectively, being the only laggards in the space.
FII’s Activity 25-May-17
The FIIs as per Thursday’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 5950.18 crore against gross selling of Rs 5591.42 crore. Thus, FIIs stood as net buyers of Rs 358.76 crore in equities.
In the debt segment, the gross purchase was of Rs 1700.79 crore with gross sales of Rs 1687.50 crore. Thus, FIIs stood as net buyers of Rs 13.29 crore in debt.
Now what to expect ??
Nifty Levels
Support at 9448---9361 and Resistance at 9598.
Above 9519 will see further upside rally till 9545---9598 mark else it could test its support level of 9448---9361 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 22531 and resistance at 23707
Above 23229 will see further upside rally till 23448---23578 mark. More upside rally will see only close above 23707 level else it could test its support level of 22751---22531 again.
Today's Top Pick
ABFRL
Support at 155 and Resistance at 170
Above 170 will see upside rally till 182---195+++ mark.
Looks weak only if close below 155
Results Today
CG Power and Industrial Solutions Limited
Tech Mahindra Limited
Tata Chemicals Limited
Sun TV Network Limited
Sun Pharmaceutical Industries Limited
Torrent Pharmaceuticals Limited
Oil & Natural Gas Corporation Limited
NBCC (India) Limited
Power Finance Corporation Limited
ITC Limited
Mahanagar Gas Limited
Hindustan Petroleum Corporation Limited
DLF Limited
Divi's Laboratories Limited
BEML Limited
Ex-Dividend Date
State Bank of India- Rs 2.60 per share
More will update soon!!
