Nifty 9,606 /Sensex 31,103/ Bank Nifty 23,477
18 Advances / 33 Declines/ 0 Unchanged
Indian benchmarks pare early gains; end on a flat note
Indian equity benchmarks showed a volte-face on Tuesday as what started on a promising note ended as a dismal show. The optimism in domestic markets petered out completely by the end of trade and the benchmarks even drifted in to the negative territory despite getting off to a gap-up opening. Market men were optimistic for most part of the session, as softer-than-expected inflation data fuelled hopes of a rate cut by the central bank at its next policy review in August. Data released late on Monday showed consumer inflation easing to 2.18% in May, helped by a drop in food prices - the lowest since India started publishing an economy-wide consumer price index in 2012. Some support also came with Union Finance Minister Arun Jaitley’s statement that the Reserve Bank of India (RBI) was at a fairly advanced stage of preparing a list of borrowers from whom non-performing assets (NPAs) of public sector banks could be recovered under the Insolvency and Bankruptcy Code. The move would help beleaguered public sector banks (PSBs) recover part of their NPAs, estimated at over Rs 6 lakh crore. However, the sanguinity in local markets was under check as profit booking in IT, Metal and Auto counters exerted downside pressure on the frontline indices and dragged near the psychological 9,600 (Nifty) and 31,100 (Sensex) levels. Investors turned jittery ahead of the US Federal Reserve's two-day policy meeting that kicks off later today where they are widely expected to hike the policy rate this time. Adding the pessimism among investors, Industrial production growth slipped to 3.1% in April compared to the same period last year, when industrial production grew by 6.5%, though it was better than last month.
On the global front, Asian markets were trading mostly higher on Tuesday, as investors took a cautiously optimistic stance ahead of a US Federal Reserve policy meeting that could provide cue on the pace of rate hikes in the months to come. The positive sentiments across the region was also supported by oil prices, which edged up in early trade, following statements that OPEC leader Saudi Arabia was making significant supply cuts to customers. However, the Japanese market edged lower following the weak cues overnight from Wall Street and a stronger yen. Meanwhile, European markets gained, with technology shares in recovery mode after a selloff in the previous session that pushed the market to its worst close in nearly a month.
Back home, after getting a firm start, the local benchmarks maintained their gain for most part of the session, however profit booking in frontline blue-chip stocks in late hours dragged the key indices below neutral lines. Finally, the Bombay Stock Exchange's Sensitive Index Sensex settled a tad above of its physiological level of 31,100 mark, while the 50 share index --Nifty-- closed just above its 9,600 mark.
FII’s Activity 13-June-17
The FIIs as per Tuesday’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 3517.45 crore against gross selling of Rs 3522.11 crore. Thus, FIIs stood as net sellers of Rs 4.66 crore in equities.
In the debt segment, the gross purchase was of Rs 684.04 crore with gross sales of Rs 567.17 crore. Thus, FIIs stood as net buyers of Rs 116.87 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9580 and resistance at 9620.
Above 9620 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 23400 and resistance at 23600
Above 23600 will see further upside rally till 23850---24000 else it could test its support level of 23400 again.
Break and close below 23400 will take to 23200---23050 mark.
Trade with levels only
Ex-Dividend Today
Can Fin Homes Limited 10 /- Per share
More will update soon!!
