Nifty 9,121/Sensex 29,485/ Bank Nifty 21,019
26 Advances / 25 Declines/ 0 Unchanged
Indian Benchmarks end with modest cut; Nifty holds 9,100 mark
Extending previous session’s southward journey, Indian equity benchmarks ended the session slightly in red on Tuesday. Soon after a positive start, markets entered into red terrain, as traders reacted negatively to SBI Research report which highlighted that if the UP government fulfils its farmer loan waiver promise, banks are likely to take a hit of Rs 27,420 crore and the scheme will lead to some stress on the state’s fiscal arithmetic. The BJP had in its UP election manifesto promised to waive farmers’ loans if elected to power. The report said that schedule commercial banks together had an outstanding farm credit of Rs 86,241.20 crore in UP with the average ticket size of Rs 1.34 lakh, as of 2016, most of which is to small and marginal farmers.
However, some recovery took place in last leg of trade and pared most of their initial losses, as investors opted to buy beaten-down but fundamentally strong stocks. Traders took some support with report that Cabinet cleared four supporting GST legislations, paving the way for their introduction in Parliament. Once approved by Parliament, the states would start taking their SGST bill for discussion and passage in the respective state assemblies.
Positive opening in European markets too provided some support, as investors eyed rising oil prices and intensifying talks between Greece and its euro zone creditors. Asian shares hit 15-month highs on Tuesday, while the dollar and US bond yields were on the back foot on the prospect of a less-hawkish Federal Reserve policy trajectory.
Back home, the Indian rupee strengthens against the US dollar at the time of closing at 65.27 from its previous close of 65.36. On the sectoral front, banking stocks edged lower after a foreign brokerage firm downgraded a slew of large Indian lenders, citing expectation of weak earnings. Stocks of some drug makers slumped on worries of regulatory action from the US Food and Drug Administration. Hectic pressure was witnessed in select oil companies after a parliamentary panel reported that upstream oil and gas producers will face substantial additional tax liability under the proposed GST regime due to the clipping of existing tax breaks, a higher tax rate on services and the temporary exclusion of five hydrocarbons from the new indirect tax system.
FII’s Activity 21-March-17
The FIIs as per Tuesday’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 5482.03 crore against gross selling of Rs 4863.12 crore. Thus, FIIs stood as net buyers of Rs 618.91 crore in equities.
In the debt segment, the gross purchase was of Rs 2477.70 crore with gross sales of Rs 1221.79 crore. Thus, FIIs stood as net buyers of Rs 1255.91 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9050---8970 and Resistance at 9155
Looks weak and could test its support level of 9050---8970. Further downside panic will see only close below 8970 mark else could touch its resistance level of 9155 again.
Close above 9155 will see further upside rally till 9218---9248+++ mark.
Trade with levels only...
More will update soon!!
