Nifty 9,618 /Sensex 31,155/ Bank Nifty 23,498
18 Advances / 33 Declines/ 0 Unchanged
Indian benchmarks end higher ahead of Fed outcome due later yesterday
Indian equity markets started the session on a sluggish note but managed to eke out some gains by the end of trade, as the benchmark indices clawed back into the green terrain in the late afternoon trade on getting some supportive leads from the European markets ahead of US Federal Reserve's policy outcome. Besides, sentiments got a boost after the report that Inflation based on the wholesale price index (WPI) slipped to a five-month low of 2.17% in May, as food inflation turned negative and prices of manufactured items rose at their weakest pace in the past five months. Some support also came with reports that the government is working on a new industrial policy with a view to promoting and developing frontier technologies, innovation and enhancing competitiveness of domestic products. However, gains remained capped with a private report stating that Indian employers expect steady hiring outlook for next three months, but their confidence have dipped to the least optimistic level since 2005 amid uncertainties in global markets. Further, traders remained cautious over the private report indicating that over 65% of the total Rs 9.50 lakh crore of agri debt may potentially get written-off. Maharashtra followed Uttar Pradesh in announcing a debt waiver for the farmers, which is expected to drill Rs 30,000 crore hole for the state exchequer. Meanwhile, India's engineering exports to Doha have been hit following sanctions imposed on Qatar by some nations including Saudi Arabia. Middle East and West Asia are one of the key destinations for Indian engineering exports, accounting for 13% of the country's total engineering exports.
On the global front, Asian equity markets ended mostly lower on Wednesday, as investors everywhere awaited clarity on Fed's future path for US policy after a likely rate rise later in the day. The Fed is widely expected to raise its benchmark interest rate this week due to a tightening labour market and may also provide more details on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery. Adding the pessimism among traders, Economic data out of China showed retail sales and industrial output topped forecasts in May, but a miss in urban investment reinforced views the world's second-largest economy will soon start to lose some momentum as lending costs rise and the property market cools. Meanwhile, European stocks rose for a second day, led by technology shares.
Back home, many PSU Banks gained traction after the Reserve Bank of India announced steps to speed up NPA resolution process by identifying 12 accounts that can be immediately taken up under the Insolvency and Bankruptcy Code (IBC). The gross bad debt of the Indian banking system as of March was at Rs 7.11 lakh crore, which means the 12 accounts would be responsible for about Rs 1.78 lakh crore.
FII’s Activity 14-June-17
The FIIs as per Wednesday’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 9326.45 crore against gross selling of Rs 4417.08 crore. Thus, FIIs stood as net buyers of Rs 4909.37 crore in equities.
In the debt segment, the gross purchase was of Rs 2818.69 crore with gross sales of Rs 606.61 crore. Thus, FIIs stood as net buyers of Rs 2212.08 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9620.
Above 9620 will see rally till 9650--9680 and then to 9735 mark.
Panic will see only close below 9580 level only
Bank Nifty Levels
Support at 23400 and resistance at 23600
Above 23600 will see further upside rally till 23850---24000
Fresh downside panic will seen only close below 23400 mark.
Trade with levels only
Today's Top Pick
Dena Bank
Dena Bank.... Yesterday we have seen sharp upside move in it because of on going news of Merger with other PSU banks.
Support at 33 and Resistance at 36.
Above 36 will see upside rally till 39---42+++ mark in days to come.
Looks weak only if close below 33
AGM Today
Syndicate Bank
Union Bank of India
Ex-Bonus Today
Biocon Limited 2:1
Ex-Dividend Today
Asian Paints Limited AGM/ Dividend Rs 5.65 per Share + Special Dividend Rs 2/- Per Share
Buy Back Today
Kaveri Seed Company Limited
More will update soon!!
