Nifty 9,637/Sensex 31,190/ Bank Nifty 23,416
15 Advances / 36 Declines/ 0 Unchanged
Indian benchmarks edge lower ahead of RBI policy
Indian benchmark indices witnessed a dismal trading session on Tuesday, as investors turned jittery ahead of the Reserve Bank of India’s (RBI) monetary policy review meet tomorrow. With the excess liquidity in the banking system, RBI is unlikely to cut interest rates on Wednesday to tackle a growth slowdown. The central bank is still grappling with more than $60 billion in excess liquidity after the government’s crackdown on high-denomination notes last year, even after raising the reverse repurchase rate in April and deploying an array of instruments to soak up the funds. Sentiments also remained subdued with the report that Indian companies raised around Rs 33,400 crore in May through private placement of corporate bonds, a slump of 44% from the year-ago level, for business expansion and propping up working capital needs. According to latest data available with markets regulator SEBI, firms garnered a total of Rs 33,389 crore in May 2017, lower than Rs 59,801 crore raised in the year-ago period. Besides, weak trend in Asian stocks also weighed on the trading sentiments.
However, losses remained capped with the report that India has surpassed China to secure the top position among 30 developing countries on ease of doing business. The 2017 Global Retail Development Index (GRDI), now in its 16th edition, ranks the top 30 developing countries for retail investment worldwide and analyses 25 macroeconomic and retail-specific variables. Meanwhile, the progress of the monsoon continues to be stuck along the Kochi-Tondi-Agartala-Williamnagar-Kokrajhar axis linking the west coast and North-East India but it is a matter of a few days before it resumes its northward journey. Even in Kerala, the rains are yet to reach the northern districts beyond Ernakulam and Thrissur, according to trends in recorded rainfall till Monday.
On the global front, Asian equity markets ended mostly lower on Tuesday, with geopolitical tensions in the Middle East and caution ahead of key risk events keeping investors nervous. Crude oil prices extended losses in Asian trades. Investors remained cautious ahead of the UK general election, the ECB meeting and former FBI director James Comey's congressional testimony - all due on Thursday. However, Chinese shares bucked the regional trend to end a tad higher, with consumer and financial shares lending support as investors pondered the impact of new regulations on initial public offerings and ahead of a flurry of economic data. Meanwhile, all the European counterparts were trading in the red where, major indices like DAX and CAC declined over quarter percent.
Back home, after getting cautious start, the local indices slipped into negative in late morning trade on account of profit booking in frontline blue-chip stocks. Thereafter, the indices extended their losses in midafternoon trade, tracking weak opening European markets. Finally, the NSE’s 50-share broadly followed index Nifty, took a cut of over quarter percent to settle below the crucial 9,650 support level, while Bombay Stock Exchange’s Sensitive Index Sensex slipped by over hundred points and closed below the psychological 31,200 mark. Moreover, the broader markets had to bear a brutal assault, as they went on to underperform their larger peers by quite a margin with BSE’s midcap shaving off 0.62% and BSE’s small cap shelving 0.65%. The market breadth remained in favor of decliners, as there were 924 shares on the gaining side against 1774 shares on the losing side, while 160 shares remain unchanged.
FII’s Activity 6-June-17
The FIIs as per Tuesday’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 4280.24 crore against gross selling of Rs 4391.98 crore. Thus, FIIs stood as net sellers of Rs 111.74 crore in equities.
In the debt segment, the gross purchase was of Rs 864.33 crore with gross sales of Rs 499.49 crore. Thus, FIIs stood as net buyers of Rs 364.84 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9735.
Above 9680 will see upside rally till 9735 mark. More and more power will see only close above 9735 else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23200 and resistance at 23450
Above 23450 will see further upside rally till 23600---23750 mark.
More upside rally will see only close above 23750 level else it could test its support level of 23200 again.
Ex-Dividend Today
IRB Infrastructure Rs 3/- Per share
More will update soon!!
