Nifty 9,491 /Sensex 30,834/ Bank Nifty 23,235
28 Advances / 23 Declines/ 0 Unchanged
Indian equities end a lacklustre session with moderate cut
The penultimate day of June series futures and options contract expiry turned out to be a disappointing session for the Indian equity indices, as they went on to extend the declining streak for the third successive session and settled below the psychological 9,500 (Nifty) and 30,900 (Sensex) levels. The session largely remained characterized by choppiness, as the aimless indices moved only sideways in a tight band, lacking any significant upside triggers. Trading Sentiments were undermined after global credit rating agency Fitch maintained its negative outlook on Indian banks because of erosion of the sector's core capitalization, even as they enter the final phase of Basel III migration. This is based on its assessment that the sector's core capitalization, which has been eroded in the last few years, will remain challenged unless it is boosted by adequate capital support from the authorities or equity raising from capital markets. Further, negative opening of European markets and ongoing weakness in other Asian markets, after Wall Street was knocked hard in the wake of a delay to a US healthcare reform vote, also spoiled investors' sentiments. Some weakness also came with Finance Minister Arun Jaitley's statement that people may have to face some difficulty initially during the Goods and Services Tax (GST) is rolled out, but in the long run the new indirect tax regime would help cut tax evasion and check price rise. He also said that the GST Council will look at bringing real estate within the GST net by next year and revisit taxing of petroleum products under the new regime in 1-2 years. However, the broader markets showed some resilience and settled on a positive note, outperforming their larger peers by quite a margin. Market participants got some confidence with Union Power Minister Piyush Goyal’s statement that the GST will reduce the work of businesses by reducing the number of taxes from 11 to one. He added that the Goods and Services Tax Network (GSTN) will make filing returns and make book keeping very easy.
On the global front, Asian equity markets ended in red on Wednesday, as the US Senate's move to delay a vote on healthcare bill until after next week's July 4 holiday triggered concerns whether the Trump administration will be able to deliver pledged tax cuts and infrastructure spending. In her first public appearance since the US Federal Reserve hiked rates on June 14, Fed Chair Janet Yellen reiterated that the US central bank would continue to raise interest rates only gradually. She also said that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash. Further, Chinese shares edged lower as comments by Premier Li Keqiang raised concerns over an economic slowdown and regulatory tightening. The Indonesian market remained closed for the Eid-ul-Fitr holiday. Meanwhile, European stocks dropped in early trade, pulled down by a rising euro, which looked headed for its highest level in a year on worries the European Central Bank may start winding down monetary stimulus.
Back home, the market breadth remained pessimistic, as there were 1276 shares on the gaining side against 1332 shares on the losing side, while 181 shares remained unchanged.
FII’s Activity 28-June-17
The FIIs as per Wednesday’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 7896.55 crore against gross selling of Rs 6954.86 crore. Thus, FIIs stood as net buyers of Rs 941.69 crore in equities.
In the debt segment, the gross purchase was of Rs 994.89 crore with gross sales of Rs 249.31 crore. Thus, FIIs stood as net buyers of Rs 745.58 crore in debt.
Now what to expect??
Nifty Levels
Support at 9500 and resistance at 9580
Close below 9500 will see panic till 9420---9380 mark else it could test its resistance level of 9580 again.
Rally will see only close above 9580 level only
Bank Nifty Levels
Below 23250 will see further downside panic till 23000---22850 mark.
Rally will see only close above 23420 mark
Trade with levels only
Corporate Action Today
Bharat Financial Inclusion Limited- Annual General Meeting
HDFC Bank Limited- Dividend - Rs 11/- Per Share
More will update soon!!
