Nifty 9,616/Sensex 31,095/ Bank Nifty 23,470
13 Advances / 38 Declines/ 0 Unchanged
Indian benchmarks slipped ahead of inflation data due later yesterday and Fed policy on Wednesday
Indian markets made a nervous start to the week as the benchmarks plummeted over half a percent, as investors took profits off the table ahead of IIP and inflation data due later yesterday. Sentiments remained dismal, as the State Bank of India expressed concern that demonetisation, announced in November 2016, may continue to result in slowing down of the economy, and adversely affect its business. It said that the long-term impact of this move on the Indian economy and the banking sector is uncertain. Besides, weak global cues coupled with depreciation in Indian rupee against the dollar too weighed down sentiments.
The frontline indices shaved off over half percent and breached 31,100 (Sensex) and 9,650 (Nifty) levels on the downside. The broader markets too mirrored their larger peers and drifted to lower levels to snap the day on a pessimistic note. Some concerns also came after government of Maharashtra on Sunday announced a loan waiver for farmers and decided to form a committee to decide the criteria of debt relief. The loan waiver of around Rs 30,000 crore will affect the state fiscal and 'impact the credit discipline' among borrowers. Further, market participants failed to get any sense of relief with the report that the southwest monsoon is making a steady advance into Maharashtra & West Bengal and the weatherman has predicted a good week ahead. India Meteorological Department Director General KJ Ramesh said monsoon is in an active phase and has reached Mumbai, Mahabaleshwar (in Maharashtra) and several parts of the Konkan region, apart from Bijapur district in north Karnataka.
On the global front, Asian equity markets ended mostly lower on Monday, as markets turned cautious, ahead of a US Federal Reserve policy meeting that could give hints on the pace of further rate tightening in the months to come and next year. With the Fed widely expected to raise interest rates at its two-day meeting that ends on Wednesday, investors will be focusing on whether the central bank thinks the U.S. economy is robust enough to withstand further rate hikes through 2017 and how it plans to whittle down its massive balance sheet. Further, Japanese shares ended lower after the country's core machinery orders fell more than expected in April, casting doubt on the strength of companies' capital spending and adding to concerns about the country's fragile economic recovery. The 3.1% fall in the core orders from a month earlier was much bigger than the 1.3% decline expected by many economists, potentially dragging on economic growth in the current quarter. Meanwhile, European markets were in the red, amid a sell-off in the technology sector and uncertainty over Britain's political landscape after the governing Conservative Party lost its parliamentary majority in a general election last week.
Back home, several Jewellery stocks gained after the GST Council decided to reduce GST rates for jewellery making charges to 5% from 18% earlier. The Council's earlier decision of 18% attracted much discontent among jewellery manufacturers, as impractical and likely to cause immense job losses, as 95% of jewellery is made on the basis of job work. On the other hand, banking stocks came under selling pressure, ahead of a meet between Arun Jaitley and public sector banks (PSBs) heads to discuss the issue of non-performing assets (NPAs) and the steps being taken by them to expedite the recovery of bad loans that have crossed Rs 6 lakh crore.
FII’s Activity 12-June-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 4044.54 crore against gross selling of Rs 4113.59 crore. Thus, FIIs stood as net sellers of Rs 69.05 crore in equities.
In the debt segment, the gross purchase was of Rs 4965.25 crore with gross sales of Rs 1456.21 crore. Thus, FIIs stood as net buyers of Rs 3509.04 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9650.
Above 9650 will see further upside rally till 9680--9720 mark else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23360 and resistance at 23580
Above 23580 will see further upside rally till 23740---23860 mark.
More upside rally will see only close above 23860 level else it could test its support level of 23360 again.
Ex-Dividend Today
Tata Consultancy Services Limited Rs 27.50/- Per share
Ex-Bonus Today
Wipro Limited 1:1
More will update soon!!
