Nifty 9,615 /Sensex 31,221/ Bank Nifty 23,272
36 Advances / 24 Declines/ 1 Unchanged
Indian benchmarks display spirited performance post GST launch
Indian equity indices showcased a courageous performance and went on to outclass indices around the world by vivaciously rallying by close to a percent in the session and settled above the psychological 9,600 (Nifty) and 31,200 (Sensex) levels. Sentiments got a boost with report that the government has ramped up capital spending by nearly 60% in the first two months of the current financial year, in a bid to perk up investment sentiment and crowd in private investment. Early passage of the budget in March has allowed the government start spending from the beginning of the new financial year in April. In April-May, the government spent Rs 52,536 crore, 58% more than the year earlier period.
Adding optimism among investors, Moody’s said GST will be credit positive for India. Implementation of the goods and services tax (GST) will be positive for India's rating as it would lead to higher GDP growth and increased tax revenues.
Some support also came with IMD report indicating that the first month of monsoon has been heartening with India recording a 4% surplus in rainfall combined with a well-distributed pattern, except in the eastern regions. The average rainfall in June was 170.2mm, 7mm higher than the usual 163.6mm. Traders paid no heed to the report stating that manufacturing activity in India fell to a four-month low in June amid softer rise in factory new orders. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI)-a composite single-figure indicator of manufacturing performance-slipped to 50.9 in the month of June as against 51.6 in the month of May.
On the global front, Asian equity markets ended mostly higher on Monday as investors digested cheering economic news out of China and Japan. The survey of Chinese manufacturing from Caixin found output at a three-month high in June, while Japan's official ‘tankan’ snapshot of business sentiment showed levels of cheer at their highest for more than three years. Meanwhile, investors awaited cues from this week's G20 summit, the Wednesday release of Fed minutes and the US nonfarm payrolls report to be released on Friday. Meanwhile, European shares began the new quarter with solid gains, while the dollar lifted from nine-month lows as US Treasury yields hit their highest since mid-May.
Back home, Fertiliser stocks rallied after the GST Council lowered the rate on fertiliser from 12% to 5% and on tractor parts from 28% to 18%. Finance Minister Arun Jaitley said the decision to reduce the tax rate on fertiliser was taken because of apprehensions that price of the crop nutrient may go up. Besides, consumer goods makers such as ITC surged on hopes the newly implemented GST would reduce retail prices and boost sales. In scrip specific development, Carmaker Maruti Suzuki India gained after posting a 7.6% jump in June vehicle sales on Saturday, while commercial vehicles maker Ashok Leyland climbed to its highest in a year after reporting an 11% rise in June total sales.
FII’s Activity 3-Jul-17
The FIIs as per Monday’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 5833.55 crore against gross selling of Rs 4378.89 crore. Thus, FIIs stood as net buyers of Rs 1454.66 crore in equities.
In the debt segment, the gross purchase was of Rs 1463.01 crore with gross sales of Rs 765.03 crore. Thus, FIIs stood as net buyers of Rs 697.98 crore in debt.
Nifty Levels
Above 9580 will see rally till 9680---9720 mark. Panic will see only close below 9500 level only
Bank Nifty Levels
Support at 23000 and resistance at 23500
Above 23370 will see further upside rally till 23460---23500. Close above 23500 will see sharp upside rally till 23800---24000 mark.
Support and stop loss below 23000 on closing basis.
Trade with levels only
More will update soon!!
