Nifty 9,578 /Sensex 31,075 / Bank Nifty 23,391
12 Advances / 38 Declines/ 1 Unchanged
Indian equities nosedive on weak global causes
The Penultimate trading day of the week turned out to be a disappointment for the Indian frontline equity indices, as they remained choppy throughout the session and ended near day’s lows. The benchmarks suffered hefty bouts of profit booking especially in Oil & Gas, PSU and IT counters and got dragged below the psychological 8,600 (Nifty) and 31,100 (Sensex) levels. Sentiments remained weak with the report that the likely increase in farm loan waivers will weigh on PSU banks, NBFCs. The agri stress indicates that Tamil Nadu, Karnataka and Haryana may follow up with farm loan waivers, taking the total farm loan waivers to about $28 billion from $10 billion. Besides, soft US economic data, a relatively hawkish Federal Reserve statement and worries of political turmoil in the world's largest economy also weighed on the sentiments.
Adding pessimism among traders, Moody’s Investors Services in its report indicated that Reserve Bank of India’s (RBI’s) move to reduce the amount of money that banks have to set aside (as security) on home loans is negative from the perspective of the ratings of lenders. According to the rating agency, the move is credit negative for Indian banks because lower capital requirements will weaken their protection related to the exposure to the housing sector and encourage greater lending. Some concerns also came with report that foreign portfolio investors (FPIs) sold shares worth a net Rs 161.13 crore on June 14, 2017. Meanwhile, with less than two weeks to go, the Centre and States are hoping to wrap up discussions on the goods and services tax (GST) this weekend. The GST Council will meet on June 18 to finalize the tax rate on lottery and will discuss the remaining draft rules.
On the global front, Asian markets ended mostly lower on Thursday, after the Federal Reserve raised interest rates as expected. The Federal Open Market Committee voted to raise fed funds to between 1% and 1.25%, and will start ‘gradual’ shrinking of its $4.5 trillion balance sheet ‘this year.’ Lower oil prices took a toll on energy-related shares across the region, while Japan's benchmark slipped as the yen gained against the dollar. Oil prices wallowed near their lowest levels in seven months early on Thursday, hurt by high global inventories and doubts over OPEC’s ability to implement production cuts. Meanwhile, European stocks dropped to their lowest in nearly two months, rattled as investors questioned the Federal Reserve’s outlook for monetary policy as signs of flagging consumer demand have cropped up.
Back home, the market breadth remained optimistic, as there were 1375 shares on the gaining side against 1271 shares on the losing side, while 172 shares remained unchanged.
FII’s Activity 15-June-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 6819.81 crore against gross selling of Rs 6733.70 crore. Thus, FIIs stood as net buyers of Rs 86.11 crore in equities.
In the debt segment, the gross purchase was of Rs 1247.69 crore with gross sales of Rs 483.75 crore. Thus, FIIs stood as net buyers of Rs 763.94 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9612.
Above 9612 will see rally till 9650--9680 and then to 9700 mark.
Panic will see only close below 9580 level only
Bank Nifty Levels
Support at 23275 and resistance at 23400
Above 23400 will see further upside rally till 23520---24600
Fresh downside panic will see only close below 23275 mark.
Trade with levels only
Ex-Dividend Today
Tata Communications Limited Annual General Meeting / Dividend - Rs 4.50 per Share / Special Dividend Rs 1.50 per Share
More will update soon!!
