Nifty 9,429 /Sensex 30,434 / Bank Nifty 22,698
6 Advances / 45 Declines/ 0 Unchanged
* Feeble global cues drag benchmarks lower; Sensex settles below 30,500*
Snapping the record-setting spree, Indian equity benchmarks ended the daunting day of trade with a cut of around a percent, with frontline gauges settling below their crucial 30,500 (Sensex) and 9,450 (Nifty) levels amid selloff as political turmoil in White House spooked investors and dragged the global markets. Major bourses traded in red terrain throughout the session, as traders remained on sidelines eyeing two-day Goods and Services Tax (GST) Council meet beginning in Srinagar, which will see participation from 29 states and union territories, along with Jaitley, and senior officials from the revenue department. In the meeting Finance Ministry Arun Jaitley is likely to finalise the rates that various goods and services will attract from July 1. Meanwhile, the GST Council approved all nine rules for the rollout of the new indirect tax regime. The nine rules finalized by the council pertain to composition, valuation, transition, input tax credit, invoice, payment, refund, registration and return.
Market participants failed to get any sense of relief with Commerce and Industry Minister Nirmala Sitharaman’s statement that India’s exports have been increasing despite global headwinds and efforts are being made to neutralise any impact on them due to implementation of GST. Traders also overlooked a senior UN economic official’s statement that the demonetization policy is not expected to have a long term impact on domestic demand in India, which is projected to clock a 7.9 percent growth in fiscal 2018.
Selling intensified in last leg of trade with European markets making a somber start as mounting political uncertainty in the U.S. exacerbated concerns among investors as to whether President Donald Trump would be able to deliver on key pro-growth policies. Asian markets too traded weak and ended mostly in red on Thursday.
Back home, depreciation in Indian rupee too dampened sentiments. The Indian rupee weakened for the third consecutive session against the US dollar as concern over US President Donald Trump spurred a selloff in emerging market currencies. On the sectorial front, banking stocks remained under pressure after domestic rating agency India Ratings and Research report highlighted that the banking system has Rs 7.7 trillion of unrecognized stressed loans in corporate and SME sector and around 35 per cent of that could slip into the NPA category in the next 12-18 months. Select pharma companies too ended in red, as the drug price regulator NPPA has initiated action against various firms, including Abbott Healthcare, Zydus Cadila and Dr Reddy’s, for non-compliance with provisions for new drugs under the price control regime. In a notification issued, the National Pharmaceutical Pricing Authority (NPPA) said that various companies have launched formulations by altering a scheduled formulation with strength dosage other than as specified in the Drugs Price Control Order (DPCO) 2013.
FII’s Activity 18-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 6310.87 crore against gross selling of Rs 5147.89 crore. Thus, FIIs stood as net buyers of Rs 1162.98 crore in equities.
In the debt segment, the gross purchase was of Rs 2732.32 crore with gross sales of Rs 680.47 crore. Thus, FIIs stood as net buyers of Rs 2051.85 crore in debt.
Now what to expect??
Nifty Levels
Yesterday we have seen sharp fall in Nifty. It crashed vertically almost 100 points.
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.
Results Today
V-Guard Industries Limited
Sintex Industries Limited
Tata Power Company Limited
Suzlon Energy Limited
Union Bank of India
State Bank of India
Motherson Sumi Systems Limited
Just Dial Limited
IFCI Limited
More will update soon!!
