Nifty 9,653 /Sensex 31,297 / Bank Nifty 23,697
26 Advances / 25 Declines/ 0 Unchanged
Indian benchmarks end on negative note; Nifty manage to hold 9650 mark
It turned out to be a vulnerable performance from Indian benchmark indices on Tuesday, as they failed to snap the session in the green territory and settled marginally below the neutral lines. Sentiments remained subdued after finance minister Arun Jaitley said that the economy will have to face short-term challenges in implementing the biggest tax reforms since Independence. He further added that the official launch of the GST will take place on the midnight of June 30 at a function, which will be organized in Central Hall of Parliament. The optimism in domestic markets petered out completely by the end of trade and the benchmarks even drifted in to the negative territory despite getting off to a gap-up opening. Shares of IT companies rose following overnight rebound in US technology stocks, while banking stocks declined after Punjab joined Maharashtra and Uttar Pradesh in announcing sops for farmers. Punjab Chief Minister Amarinder Singh on Monday announced a total waiver of entire crop loans of 8.75 lakh small and marginal farmers.
Some concerns also came with report that foreign portfolio investors (FPIs) sold shares worth a net Rs 250 crore on June 19, 2017. However, the downside risks for the frontline indices was limited by Fitch Ratings' latest report indicating that India's economic growth is expected to rise by 7.4% and 7.6% in the next two fiscal years. The rating agency added that the investment in India is also expected to witness gradual rise owing to transmission of supportive monetary policy along with the government's various structural reforms. Some support also came with India, pitching for a greater engagement with BRICS (Brazil, Russia, India, China and South Africa) nations on issues the international community addressed during BRICS Foreign Ministers meeting in Beijing. Meanwhile, Airline stocks such as Spice Jet, Indigo and Jet Airways gained traction after passengers carried by domestic airlines grew by close 18% to 465.87 lakhs during January-May 2017 as against 396.04 lakhs in the corresponding period of previous year.
On the global front, Asian equity markets made a mixed closing on Tuesday, with Japan's Nikkei index climbing around a percent, as the dollar hit a three-week high against the yen. Chinese shares remained subdued as investors await a decision on whether the MSCI index committee will include China A-shares in its Emerging Market Index. This will be China's fourth attempt at MSCI inclusion, after being passed over the first three times. Further, Hong Kong stocks declined as excitement over the city's plans for a new listing board for new economy companies waned, and investors shifted their attention to economic fundamentals. Meanwhile, European stocks were trading higher led by advances among tech and consumer-related shares.
Back home, the market breadth remained pessimistic, as there were 1229 shares on the gaining side against 1428 shares on the losing side, while 171 shares remained unchanged.
FII’s Activity 20-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 3886.89 crore against gross selling of Rs 4058.44 crore. Thus, FIIs stood as net sellers of Rs 171.55 crore in equities.
In the debt segment, the gross purchase was of Rs 1745.12 crore with gross sales of Rs 671.00 crore. Thus, FIIs stood as net buyers of Rs 1074.12 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9680
Above 9680 will see rally till 9730---9775 mark else it could test its support level of 9580 again.
Panic will see only close below 9580 level only
Bank Nifty Levels
Support at 23350 and resistance at 23700
Above 23700 will see further upside rally till 23900--24050
Fresh downside panic will see only close below 23350 mark.
Trade with levels only
AGM/Dividend/Bonus Today
Shriram Transport Finance Company Limited- Annual General Meeting/Dividend - Rs 6/- per Share
Havells India Limited- Annual General Meeting/Dividend - Rs 3.50 per Share
Oriental Bank of Commerce- Annual General Meeting
Punjab National Bank- Annual General Meeting
Pc Jeweller Limited- Bonus 1:1
More will update soon!!
