Nifty 9,633 /Sensex 31,283 / Bank Nifty 23,708
17 Advances / 34 Declines/ 0 Unchanged
Indian benchmarks settle with moderate losses Indian benchmarks settle with moderate losses
Indian equity benchmarks carried forward their southward journey for yet another session on Wednesday, as market participants waited for minutes of a June policy meet by the Reserve Bank of India (RBI) to gauge the direction of interest rates in the months ahead. Today's session largely remained characterized by choppiness as the aimless indices moved only sideways in a tight band lacking triggers for most part of the day. Sentiments remained downbeat with the inclusion of Chinese mainland stocks to the MSCI index, which could lead to hundreds of billions of dollars’ worth of share purchases, shrinking shares of other emerging markets, including India.
Some concerns also came with CARE Ratings' latest report that the fiscal deficit estimate for 2017-18 is set to rise to 3.35% from present 3.24% of GDP, impacted by Rs 17,780 crore shortfall in non-tax revenue (NTR) target from telecom services. Besides, muted trend in other Asian markets following a renewed slump in oil prices to seven-month lows also weighed the sentiment. However, losses remained capped with the report that India's farm sector is poised for a boom as monsoon's biggest threat, the El Nino phenomenon, has been completely ruled out and heavy showers in the key agricultural regions of Punjab, Haryana and Uttar Pradesh have created the right conditions for crop planting. The widely respected Australian weather office had formally withdrawn its El Nino alert and said that outlook for the phenomenon was inactive. Meanwhile, India has witnessed a whopping 30% rise in the foreign exchange earnings from the tourism sector in the month of May, as compared to the same period in the last two years and a 19% increase in tourist footfalls. According to the Reserve Bank of India's credit data of Travel Head from Balance of Payments, foreign exchange earnings (FEEs) during the month of May 2017 were Rs 12,403 crore as compared to Rs 10,260 crore in May 2016 and Rs 9,505 crore in May 2015.
On the global front, Asian markets ended mostly lower on Wednesday, tracking losses on Wall Street overnight, after crude oil futures tumbled into negative territory. Investors reaction was muted to news that US index provider MSCI has decided to add Chinese A-shares into its benchmark Emerging Markets Index. MSCI will add 222 China A shares in the index starting in June 2018. Geopolitical tensions also took center stage after US President Donald Trump tweeted that efforts by China to rein in North Korea have not worked. Trump's warning came exactly a day before US and Chinese officials are to meet in Washington to talk about North Korea. Japanese shares lost ground as a stronger yen as well as falling oil prices sapped investors' appetite for risk. Further, Japan's Nikkei share average declined after a slightly stronger yen sapped risk appetite, while mining stocks underperformed on the back of weaker oil prices.
Back home, shares of aviation companies continued their northward journey for second consecutive day, with all the three airliners Spice Jet, InterGlobe Aviation and Jet Airways ending higher in the range of 1% to 3% on the BSE after good growth in passenger traffic and lower crude oil prices. However, Oil explorers such as Oil & Natural Gas Corporation (ONGC) declined after global oil prices hit seven-month lows. The market breadth remained pessimistic, as there were 1266 shares on the gaining side against 1366 shares on the losing side, while 185 shares remained unchanged.
FII’s Activity 21-June-17
The FIIs as per Monday’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 7994.39 crore against gross selling of Rs 8688.50 crore. Thus, FIIs stood as net sellers of Rs 694.11 crore in equities.
In the debt segment, the gross purchase was of Rs 2384.50 crore with gross sales of Rs 1351.01 crore. Thus, FIIs stood as net buyers of Rs 1033.49 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9670
Above 9670 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
Today's Top Pick
Chambal Fertilisers
Support at 118 and Resistance at 123
Above 123 will see upside rally till 127++mark in days to come.
Looks weak only if close below 118
AGM/Dividend/Bonus Today
Hindustan Unilever Limited- Annual General Meeting/Dividend - Rs 10/- Per Share
Allahabad Bank- Annual General Meeting
Upl Limited- Annual General Meeting/Dividend-Rs 7 per Share
Bank Of Baroda- Annual General Meeting/Dividend - Rs 1.20 Per Share
Equitas Holdings Limited- Annual General Meeting
Idea Cellular Limited- Annual General Meeting
Godrej Consumer Products Limited- Bonus 1:1
More will update soon!!
