Nifty 9,663/Sensex 31,271/ Bank Nifty 23,567
37 Advances / 14 Declines/ 0 Unchanged
Indian benchmarks end higher; RBI keeps key interest rate unchanged
Indian equity indices concluded the season on a positive note on Wednesday, as investor turned optimistic after Reserve Bank of India (RBI) used a less hawkish tone and reduced the Statutory Liquidity Ratio (SLR) in its second bi-monthly monetary policy for financial year 2017-18. The slashed in SLR or the percentage of deposits that banks have to park in government securities by 0.5% to 20% will allow banks to increased lending. RBI left repo and reverse repo rates unchanged at 6.25% and 6%, respectively and lowered its inflation estimates for the current financial year. The central bank, however, raised concerns over the possibility of fiscal slippages due to the farm loan waivers. RBI also cut the economic growth projection to 7.3% for the current fiscal from 7.4% earlier. With the UK elections, the European Central Bank's (ECB) policy meeting, and former FBI director James Comey's Senate testimony all set for Thursday, investors were noticeably risk averse across the globe.
Sentiments got some support after the Met Department has upgraded the South-West monsoon forecast to 98% of the long-term average rainfall from 96% earlier. Rainfall during the June-September monsoon season is expected to be normal, with a high possibility of all four broad geographical regions receiving evenly distributed rains. Some support also came with NITI Aayog CEO Amitabh Kant's statement that the Goods and Services Tax, to be rolled out next month as the biggest tax reform since independence, will help India achieve 9% growth rate. He said GST will simplify India's taxation system and help deal with tax evasion. Meanwhile, many banking stocks gained traction on hopes of early resolution to stressed assets issue and recapitalization of PSUs. The Reserve Bank of India said it would continue to work in partnership with the government to address the stress in banks' balance sheets.
On the global front, Asian equity markets made a mixed closing on Wednesday, as traders preferred to remain on the sidelines ahead of several major political and economic events later this week. These include the UK elections, the ECB policy meeting and former FBI Director James Comey's congressional testimony. However, China stocks rose as a growing number of listed firms encouraged employees to buy shares, and as the central bank injected more funds into the banking system to ease fears of a mid-year liquidity crunch. Meanwhile, European counterparts were trading in the positive territory though with marginal gains with France's CAC being the top gainer in the space.
Back home, after trading in cautious note for most part of the session, the local benchmarks ended the trading day with moderate gains. The NSE's 50-share broadly followed index Nifty got buttressed by over quarter percent to settle above the crucial 9,650 support level, while Bombay Stock Exchange's Sensitive Index-Sensex accumulated over eighty points and closed above the psychological 31,250 mark. Moreover, the broader markets managed a touch better than the larger peers today as the BSE's midcap and small cap indices settled with gains of 0.46% and 0.75% respectively. The market breadth remained optimistic, as there were 1466 shares on the gaining side against 1188 shares on the losing side, while 149 shares remained unchanged.
FII’s Activity 07-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 4094.77 crore against gross selling of Rs 7228.40 crore. Thus, FIIs stood as net sellers of Rs 3133.63 crore in equities.
In the debt segment, the gross purchase was of Rs 1649.11 crore with gross sales of Rs 861.37 crore. Thus, FIIs stood as net buyers of Rs 787.74 crore in debt.
Now what to expect??
Nifty Levels
Support at 9580 and resistance at 9735.
Above 9680 will see upside rally till 9735 mark. More and more power will see only close above 9735 else it could test its support level of 9580 again.
Trade in a range with levels only.
Bank Nifty Levels
Support at 23400 and resistance at 23640
Above 23640 will see further upside rally till 23700---23750 mark.
More upside rally will see only close above 23750 level else it could test its support level of 23400 again.
Ex-Dividend Today
Bosch Limited Rs 90/- Per share
BPCL Rs 1/- Per share
Torrent Power Limited Rs 1/- Per share
Aurobindo Pharma Rs 1.25/- Per share
More will update soon!!
