Nifty 9,574 /Sensex 31,138/ Bank Nifty 23,542
12 Advances / 39 Declines/ 0 Unchanged
Benchmarks end a disappointing day with around half a percent cut
Indian markets finished last trading session of the week on a daunting note, as the frontline equity indices failed to showcase any kind of resilience and kept drifting around lower levels. Sentiments remained subdued with the report that funding of crop loan waivers is likely to worsen the fiscal deficit and leverage levels of state governments with gross state development loans issued by the state governments expected to rise by Rs 70,000 crore in FY2018. So far, Maharashtra and UP have waived nearly 30-40% of outstanding agri-bank credit, while for Punjab it was 15%. The NSE’s 50-share broadly followed index, Nifty dipped below the psychological 9,600 support level, while the Bombay Stock Exchange’s sensitive index, Sensex a saw triple digit fall to sink below the crucial 31,200 mark. Meanwhile, caution is likely to prevail in the near term as India gears up to unveil a nationwide goods and services tax (GST) on July 1, while monitoring global factors such as falling crude prices.
Some weakness also came with the report that asset quality pain for banks is expected to continue in fiscal year ended March 2018 due to restructuring by banks, weakness in some large corporate accounts and events like waiver of farm loans. It expects gross non-performing assets (GNPAs) of Indian banks to increase to 9.9% to 10.2% by March 2018 from 9.5% in March 2017 with fresh slippages of loans expected at 3% to 4% in the fiscal. Investors failed to get any sense of relief with Reserve Bank Governor Urjit Patel’s statement that he is not 'overly pessimistic' about employment scenario in the IT sector, pointing out that mushrooming startups can compensate for job losses. He also highlighted that the soon-to-be implemented GST will not only create a national market but will also broaden the tax base which in turn will lower the overall taxes in the long-term.
On the global front, Asian equity markets made a mixed closing on Friday, with China in focus after the country’s banking regulator sought more information on credit risks linked to loans to major companies that bought major assets abroad. Crude oil’s extended decline this week and the effect it is having on broader financial markets has been weighing on investor sentiment and dragged down energy shares. Further, the Japanese market is little changed following the mixed cues from Wall Street and as crude oil prices advanced overnight from ten-month lows. Meanwhile, European markets were under pressure as investors monitored the movement of oil prices and focused on developments from the EU Summit in Brussels.
Back home, the market breadth remained pessimistic, as there were 676 shares on the gaining side against 1948 shares on the losing side, while 132 shares remained unchanged.
FII’s Activity 23rd-June-17
The FIIs as per Friday’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 6638.35 crore against gross selling of Rs 6129.63 crore. Thus, FIIs stood as net buyers of Rs 508.72 crore in equities.
In the debt segment, the gross purchase was of Rs 881.73 crore with gross sales of Rs 674.90 crore. Thus, FIIs stood as net buyers of Rs 206.83 crore in de
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9650
Above 9650 will see rally till 9680---9750 mark.
Panic will see only close between 9580 level only
Bank Nifty Levels
Support at 23400 and resistance at 23600
Above 23600 will see further upside rally till 23700---23750 mark.
Fresh downside panic will see only close below 23400 mark.
Trade with levels only
AGM Today
Apollo Tyres Limited- Annual General Meeting/Dividend - Rs 3/- per Share
Capital First Limited- Annual General Meeting/Dividend - Rs 2.60 per Share
More will update soon!!
