Nifty 9,616/Sensex 31,137 / Bank Nifty 23,310
24 Advances / 27 Declines/ 0 Unchanged
Indian markets end lower on poor macroeconomic data
Indian equity market commenced the new month on a sluggish note, as the benchmarks showcased an unenthusiastic performance on Thursday and settled with moderate cuts as investors remained cautious after India's economic growth unexpectedly slumped to its lowest in more than two years in the March quarter, stripping the country of its status as the world's fastest growing major economy. The country’s GDP or gross domestic product growth slowed to 6.1% in the fiscal fourth quarter from 7% in the third, while Gross value added (GVA), the difference between gross domestic product (GDP) and net indirect taxes, grew by only 5.6 per cent in Q4 - the lowest in at least eight quarters. Besides, a sharp fall in the output of coal, natural gas and crude oil pulled down growth in the group of eight core sectors to a three-month low in April, also weighed on investors’ morale. The core sector expanded 2.5 per cent in the first month of the new fiscal year, compared with 5.3% in March and 8.7% a year earlier.
Further, market participants also remained jittery after the report that manufacturing sector growth in the country moderated to a three-month low in May amid softer rise in new orders and production. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- declined from 52.5 in April to a three-month low of 51.6 in May. However, losses remained capped with the report that Fiscal deficit in fiscal 2017 was 3.5% of GDP, in line with the budget projection, reflecting the government's commitment to the process of fiscal consolidation. In fiscal 2016, the deficit was 3.9% of GDP. Furthermore, the government's decision to unveil the budget early seems to have paid off with spending having picked pace in the first month of the financial year itself. The government spent 11.3% of the budgeted expenditure in April, with capital expenditure topping the overall spending. Meanwhile, sugar stocks gained traction after the report that India's 2017/18 sugar production will likely jump a quarter from the previous year to 25 million tons as decent monsoon rains are forecast. India's monsoon, which is forecast to deliver normal rainfall in 2017, lashed the country's southwest coast on Tuesday, two days ahead of usual.
On the global front, Asian markets ended mixed on Thursday, as investors keenly awaited Friday's US non-farm payrolls numbers as a positive report could pave the way for a rate hike in mid-June. Chinese market started the month on a bearish note, after a private survey showed that the country's manufacturing activity unexpectedly contracted in May for the first time in 11 months & companies shed more jobs as demand weakened and shrinking factory prices dented profits. The index fell to 49.6, weaker than expected, below the 50-point mark, which demarcates growth and contraction, and marked the third month in which the index has fallen. However, Japan's Nikkei gained after data showing recurring first-quarter corporate profits were the highest on record for the January to March period. Meanwhile, European markets edged higher in early trade, after solid regional manufacturing data underscored the region's ongoing recovery and a weaker pound boosted share prices in the United Kingdom. The pace of expansion in Europe's manufacturing sector continues to hold at six year highs, with employment in the sector running at the highest ever for the 20-year survey. Many investors in Europe also focused on a speech from German central bank President Jens Weidmann, who said late Wednesday that the European Central Bank should start discussing when to reduce its monetary stimulus.
Back home, after getting a cautious start, the local benchmarks traded in tight range near neutral line, altering between positive and negative, throughout the session and ended the trading day with moderate losses. The NSE’s 50-share broadly followed index - Nifty settled with trivial losses of five points above the psychological 9,600 levels, while Bombay Stock Exchange’s Sensitive Index - Sensex shed eight points and closed above the psychological 31,100 mark. However, broader markets managed to outperform the larger peers today as the BSE’s midcap and small cap indices settled with strong gains. The market breadth remained in favor of advances, as there were 1412 shares on the gaining side against 1267 shares on the losing side, while 179 shares remain unchanged.
FII’s Activity 1-June-17
The FIIs as per Wednesday’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 3421.99 crore against gross selling of Rs 3593.76 crore. Thus, FIIs stood as net sellers of Rs 171.77 crore in equities.
In the debt segment, the gross purchase was of Rs 1857.26 crore with gross sales of Rs 691.66 crore. Thus, FIIs stood as net buyers of Rs 1165.60 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9615.
Above 9615 will see further upside rally till 9650---9680 mark else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23225---23181 and resistance at 23395
Above 23395 will see further upside rally till 23480---23613 mark.
More upside rally will see only close above 23613 level else it could test its support level of 23225---23181 again.
Today's Top Pick
Cox & Kings
Support at 220 and Resistance at 230
Looks positive on charts. Above 230 rally remain continue till 240---245+++ mark.
Support and stop loss below 220
Ex-Dividend Today
Indian Bank Rs 6 per share
More will update soon!!
