Nifty 9,613 /Sensex 31,209/ Bank Nifty 23,214
21 Advances / 30 Declines/ 0 Unchanged
Indian equities end a lackluster session with modest cut
It turned out to be a dismal performance from the benchmark indices on Tuesday, as they failed to snap the session in the positive territory and settled marginally below the neutral lines. The frontline indices took a breather, a session after showcasing a scintillating performance, as market participants turned cautious after North Korea test-launched an intermediate-range ballistic missile days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang's weapons programmes. On the domestic front, fear of uncertainty over the implementation of the Goods and Services Tax (GST) has cast its shadow on manufacturing activities as growth in the sector fell to a four-month low in June, showed the widely-tracked Nikkei purchasing managers' index (PMI). The PMI dropped to 50.9 in June from 51.6 the previous month, as a softer rise in new orders resulted in weaker growth in production. However, losses in the benchmark indices were capped with the Railway Minister Suresh Prabhu’s statement that the India’s GDP growth to the tune of 8-9% was expected and the new tax rates would contribute significantly towards this. He also said the GST aims at increasing the number of taxpayers and, as the tax revenue rises, the GDP will also increase. Some support also came with the report that the Financial Stability Board (FSB), an international body for global financial system, placed India in the league of countries that are ‘compliant or largely compliant’ on implementation of priority area reforms.
On the global front, Asian markets ended lower on Tuesday, as oil prices dipped after eight days of gains and North Korea launched a ballistic missile into the waters between Korea and Japan- its first such launch in more than a month - which comes on the eve of Independence Day in the US. Further, Chinese shares edged lower, as investors booked some profits after recent gains following US index provider MSCI's decision last month to include China-listed stocks in its Emerging Markets Index. Meanwhile, Australia's central bank left interest rates unchanged on Tuesday and stuck to a neutral tone on policy despite recent signs of improvement in the economy and a swing toward more hawkish guidance among its global counterparts.
Back home, telecom stocks came under selling pressure after telecom group GSMA said that the disruptive pricing due to heightened competition in the Indian telecom space would continue for at least another year and the situation is no different from other markets where carriers were cutting tariff to beat competition. Auto stocks declined on reports that the Maharashtra government decided to increase tax on the registration of all new vehicles by 200 basis points. The tax increase is an attempt to compensate for the revenue loss that the state treasury will incur due to the abolition of octroi and local body tax from July 1, 2017. However, energy heavyweights such as Reliance Industries, Bharat Petroleum and ONGC gained on account of lower crude oil prices.
FII’s Activity 4-July-17
The FIIs as per Tuesday’s data were net sellers in equity and debt segments both, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 3532.61 crore against gross selling of Rs 4428.71 crore. Thus, FIIs stood as net sellers of Rs 896.10 crore in equities.
In the debt segment, the gross purchase was of Rs 242.78 crore with gross sales of Rs 1721.61 crore. Thus, FIIs stood as net sellers of Rs 1478.83 crore in debt.
Now what to expect??
Nifty Levels
Above 9650 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
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
Corporate Action Today
Zee Entertainment Enterprises Limited- Annual General Meeting/Dividend- RS 2.50 Per share
Motherson Sumi Systems Limited- BONUS 1:2
Dabur India Limited-Annual General Meeting/Dividend - Re 1/- Per share
More will update soon!!
