Nifty 9,630 /Sensex 31,290 / Bank Nifty 23,736
22 Advances / 29 Declines/ 0 Unchanged
Indian benchmarks give up the gains in final hours to close flat
Indian equity markets showed a volte-face on Thursday as what started on a confident note ended as a dismal show. The optimism in domestic markets petered out completely by the end of trade, tracking weak trend seen in European markets, while investors also took cues from the minutes of Reserve Bank of India's (RBI) June policy meeting. The central bank’s monetary policy committee wants more evidence that inflation has sustainably fallen below its target before deciding whether to lower interest rates. RBI voted 5-1 to keep the repo rate at 6.25% earlier this month, but issued a slightly less hawkish statement after consumer inflation eased to 2.99% in April, below its 4% target. Adding the cautiousness among investors, Union Urban Development Minister Venkaiah Naidu said loan waiver has become fashion now and should be waived in extreme situations only.
Marketmen were optimistic for most part of the session, as sentiments remained upbeat with the report that economic think-tank NCAER revised up its projection for the country's economic growth to 7.6% for the current fiscal, compared with the earlier prediction of 7.3% on forecast of normal monsoon. In its quarterly review of the economy, NCAER said prospects for the agricultural sector in 2017-18 remain optimistic on forecast of good rains. The agency has also revised upward its forecast of GVA (Gross Value Added at Basic Prices) growth at 7.3% for 2017-18 from its February estimate of 7%. However, the sanguinity in local markets was under check, as profit booking in metal and Real Estate counters exerted downside pressure on the frontline indices and dragged them even below to the psychological 9,650 (Nifty) and 31,300 (Sensex) levels. Moreover, the broader markets too succumbed to the selling pressure and went home with cuts of over half a percent. In a key decision, the market regulator SEBI banned participatory notes (p-notes) from taking naked positions in the derivatives segment, and eased the entry process for foreign portfolio investors (FPIs). It also removed the one-year lock-in requirement for private equity investors registered as alternative investment funds (AIFs) in initial public offerings (IPOs).
On the global front, Asian markets ended mostly higher on Thursday, as oil prices held steady in Asian deals after falling more than 2 percent overnight on worries over whether OPEC-led output cuts would be able to rein in a three-year glut. The market largely shrugged off comments overnight from Iran's oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production. Further, Chinese shares added to gains made on Wednesday after MSCI included mainland shares in its emerging market indexes. Meanwhile, European markets got off to a gap down opening and were trading with cuts of over half a percent.
Back home, the market breadth remained pessimistic, as there were 1115 shares on the gaining side against 1545 shares on the losing side, while 158 shares remained unchanged.
FII’s Activity 22-June-17
The FIIs as per Thursday’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 4835.29 crore against gross selling of Rs 4923.88 crore. Thus, FIIs stood as net sellers of Rs 88.59 crore in equities.
In the debt segment, the gross purchase was of Rs 1574.92 crore with gross sales of Rs 748.77 crore. Thus, FIIs stood as net buyers of Rs 826.15 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9640
Above 9650 will see rally till 9690---9750 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 23600 and resistance at 23800
Above 23800 will see further upside rally till 24000+++ mark.
Fresh downside panic will see only close below 23600 mark.
Trade with levels only
AGM Today
Ajanta Pharma Limited
More will update soon!!
