Nifty 9,030/Sensex 29,167/ Bank Nifty 20781
11 Advances / 40 Declines/ 0 Unchanged
Indian benchmarks decline for third straight session; sink by 1
Wednesday's session saw Indian benchmark indices complete a hat-trick of disappointing performances and reaching the finishing line only after collapsing by over a percent. Investors remained worried about the faster growth prospect in the United States in absence of a big fiscal stimulus from President Donald Trump, political uncertainties in Europe and a possible reversal of the easy money policy by the European Central Bank. Metals, oil and auto stocks were prominent losers as the commodity rally halted on fears the US growth prospects now looks dim if Trump fails to come up with an expansionary fiscal policy. On the domestic front, sentiments got undermined by the private report that India's GDP growth is expected to slow to 6.7% in the January-March quarter of this fiscal year as overall activity is yet to bounce back to levels seen prior to demonetisation. According to the report, a pick-up in headline CPI inflation, better global conditions (exports) and narrowing interest rate differentials (with the US) have lowered the probability of a rate cut and increased the probability of a hike. Market participants remained cautious over the reports that the government wants to tighten even further the proposed Budget measure aimed at discouraging black money through restrictions on cash transactions to Rs 2 lakh from Rs 3 lakh. The government also plans to make inclusion of the Aadhaar ID mandatory in applications for permanent account number (PAN) cards. However, Investors failed to get any sense of relief with Finance Minister Arun Jaitley's statement that the government is hoping to implement the Goods and Services Tax (GST) by July 1, after the enabling Bills get Parliament nod in the current budget session. The Union Cabinet earlier this week approved four GST related bills -- The Central Goods and Services Tax Bill 2017 (The CGST Bill), The Integrated Goods and Services Tax Bill 2017 (The IGST Bill), The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill) and the Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
On the global front, Asian markets ended lower on Wednesday as growing doubts about Donald Trump's economic growth agenda prompted investors to dump risky assets and to rush to safe havens such as gold and government bonds. Further, Japanese shares extended losses after Kyodo News, citing a Japan government source, reported that North Korea may have launched several missiles on Wednesday morning. Investors largely shrugged off better-than-expected Japanese trade data for February and the BoJ's minutes from the January policy meeting. Meanwhile, European Markets fell to a two-week low, extending losses from the previous session as weighed down by basic resources stocks.
Back home, the benchmark got off to a sober opening, extending the downtrend for the third straight session as pessimistic sentiments prevailed across Asian markets. Thereafter, the key indices failed to show any kind of favour due to lack of encouraging leads. The key gauges suffered a setback in late afternoon trades as investors took to across the board risk aversion after a weak European market opening. Eventually, the NSE's 50-share broadly followed index Nifty, took a cut of about a percent to settle below the crucial 9050 support level, while Bombay Stock Exchange's Sensitive Index, Sensex slipped by over three hundred points and closed below the psychological 29,200 mark. Moreover, the broader markets too failed to show any kind of favour and closed with losses of around a percent.
India Said Likely to Sell Axis, ITC, Larsen Shares in ETF
India’s government is likely to sell part of the stakes it holds in Axis Bank Ltd., ITC Ltd. and Larsen & Toubro Ltd. through an exchange-traded fund this year, people familiar with the matter said. Shares of the three companies fell
The new ETF would be larger than the Central Public Sector Enterprises ETF, a fund unveiled in 2014 that’s made up of the government’s shares in state-owned companies, the people said, asking not to be identified as a final decision regarding size and timing of the latest sales hasn’t been made yet.
While it’s the fourth occasion India will be using an ETF to sell shares it holds to maintain public spending without increasing the fiscal deficit, it’s the first time that a fund will house equity in private-sector companies, rather than state-controlled enterprises.DS Malik, a spokesman for India’s finance ministry, wasn’t available for a comment when contacted by phone Wednesday.
Prime Minister Narendra Modi’s administration has budgeted to raise 725 billion rupees ($11 billion) from such share sales in the fiscal year beginning April 1 as it aims to shrink Asia’s widest budget deficit. India has met or beaten its so-called disinvestment target only five times since 1998, data show.
Axis Bank shares lost 0.5 percent as of 3:09 p.m. in Mumbai on Wednesday, erasing gains after rising as much as 2.9 percent earlier. ITC, a hotels-to-tobacco conglomerate, fell 2.9 percent, the biggest intraday drop in almost a month. Larsen & Toubro, the largest Indian engineering firm, lost 1.4 percent .The government’s first share sale through the CPSE ETF in March 2014 generated 43 billion rupees, while a second tranche in January raised at least 45 billion rupees. It garnered 92 billion rupees in its third offering.
FII’s Activity 22-March-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 8601.30 crore against gross selling of Rs 6983.99 crore. Thus, FIIs stood as net buyers of Rs 1617.31 crore in equities.
In the debt segment, the gross purchase was of Rs 6250.91 crore with gross sales of Rs 1123.98 crore. Thus, FIIs stood as net buyers of Rs 5126.93 crore in debt.
Now what to expect next??
Nifty Levels
Support at 9050---8970 and Resistance at 9155.
Trend looks weak and could touch its Support level of 9050---8970. Further downside move will see only close below 8970mark else could touch its resistance level of 9155 again.
Fresh Buying can be initiated above 9155 mark only
Today's Top Pick
Reliance Infra
Below 562.... Panic remain continues till 557--550 and then to 545.
Hurdle and stop loss at 568.00
More will update soon!!
