Indian equity benchmarks ended higher with gains of around a percent
on Wednesday led by gains in Auto, Telecom and Banking stocks. Markets made a
positive start, as sentiments got boost on report that the International
Monetary Fund (IMF) has raised its projection for India's economic growth in
the current financial year by one percentage point to 12.5 per cent. The
forecast, published in the IMF's World Economic Outlook, suggests India would
again become the fastest-growing large economy in the world. In fact, India is
the only country among major world economies that is projected to grow at a
double-digit rate during FY22. China comes closest, with a forecast of 8.4 per
cent economic expansion. Equity benchmarks added gains in morning deals, after
the Reserve Bank of India (RBI) expectedly left interest rates unchanged at 4
percent and maintained an accommodative policy stance to nurture a fragile
economic recovery after the three-day meeting of its monetary policy committee
(MPC). This came amid a sharp new wave of Covid-19 cases in several states and
local lockdowns, reigniting uncertainty regarding economic outlook in the
immediate term. The FY22 growth projection was also maintained at 10.5 per
cent. Firm trade continued in late
afternoon deals, even after India's services sector activities eased in March
as growth was hit by the detrimental impact of the coronavirus pandemic and
input costs remained elevated. The seasonally-adjusted India Services Business
Activity Index fell from 55.3 in February to 54.6 in March. Though the rates of
expansion softened, it indicated growth for the sixth consecutive month. In PMI
parlance, a print above 50 means expansion while a score below 50 denotes
contraction. Meanwhile, the Finance Ministry said banks and financial
institutions have sanctioned Rs 14.96 lakh crore to over 28.68 crore
beneficiaries in the last six years. Pradhan Mantri MUDRA Yojana (PMMY) was
launched by Prime Minister Narendra Modi on April 8, 2015 to promote
entrepreneurship. Finally, the BSE Sensex rose 460.37 points or 0.94% to
49,661.76, while the CNX Nifty was up by 135.55 points or 0.92% to 14,819.05.
The US markets ended mostly higher on Wednesday. The choppy
trading on markets came as traders remained reluctant to make significant moves
as the wait for more clarity about the near-term outlook for the markets. Strong
economic data has helped lift stocks to record highs in recent sessions, but
traders are worried the markets are becoming overbought. Traders also kept an
eye on the minutes of the Federal Reserve's latest monetary policy meeting,
although the central bank only reiterated that it is unlikely to change its
ultra-loose monetary policy anytime soon. Participants in the March meeting
acknowledged the improvement in the medium-term outlook for real GDP growth and
employment but continued to see the uncertainty surrounding that outlook as
elevated. On the economic data front, the Commerce Department released a report
showing the US trade deficit widened more than expected in the month of
February. The Commerce Department said the trade deficit widened to $71.1
billion in February from a revised $67.8 billion in January. The Commerce
Department said the trade deficit widened to $71.1 billion in February from a
revised $67.8 billion in January. Street had expected the deficit to widen to
$70.5 billion from the $68.2 billion originally reported for the previous
month. With the bigger than expected increase in February, the size of the US
trade deficit reached a new record high.
Crude oil futures ended higher on Wednesday, extending
their previous session's gains, supported by data showing a drop in US crude
inventories in the week ended April 2.
Data released by Energy Information Administration (EIA) showed US crude
inventories dropped by 3.52 million barrels in the week ended April 2 compared
with expectations for a draw of about 1.44 million barrels. Meanwhile,
distillate stockpiles were up 1.452 million barrels versus expectations for a
build of 486,000 barrels, the EIA data showed. However, upside remained capped
as worries about rising coronavirus cases and reports about the extension of
lockdown measures in several places across the world raised worries about the
outlook for energy demand. Crude oil futures for May rose $0.44 or 0.7 percent
to settle at $59.77 barrel on the New York Mercantile Exchange. June Brent
crude gained $0.23 or 0.36 percent to settle at $62.97 a barrel on London's
Intercontinental Exchange.
Indian rupee
ended substantially lower against dollar on Wednesday after the Reserve Bank of
India maintained status quo on policy rates for the fifth time in a row. The
central bank kept its key policy repo rate unchanged at 4 per cent, but warned
that the recent surge in COVID-19 infections has created uncertainty over
economic growth recovery. Sentiments were also fragile as India's services
sector activities eased in March as growth was hit by the detrimental impact of
the coronavirus pandemic and input costs remained elevated. The
seasonally-adjusted India Services Business Activity Index fell from 55.3 in
February to 54.6 in March. On the global front; pound sank on Wednesday as
profit-taking by traders after a strong first quarter for the British currency
pulled it to a week's low against the dollar and its lowest in two weeks
against the euro. Finally, the rupee ended 74.47, weaker by 1.05 paise from its
previous close of 73.42 on Tuesday.
The FIIs as per
Wednesday's data were net seller in both equity and debt segment. In equity
segment, the gross buying was of Rs 5016.85 crore against gross selling of Rs
5889.82 crore. In the debt segment, the
gross purchase was of Rs 608.90 crore with gross sales of Rs 1485.36 crore.
Besides, in the hybrid segment, the gross buying was of Rs 9.15 crore against gross
selling of Rs 11.84 crore.
The US markets
ended mostly higher on Wednesday as minutes from the Federal Reserve's last
meeting showed the central bank's commitment to accommodative policy in order
to support a full economic recovery. Asian markets are trading mixed in early
deals on Thursday. Indian equity benchmarks ended higher with gains of around
one percent on Wednesday. Today, the start of session is likely to be positive.
Some support will come with Chief Economist of the International Monetary Fund
(IMF) Gita Gopinath's statement that the Reserve Bank of India (RBI)'s
quantitative easing measures are a welcome move. Gopinath also said that this
fiscal stance is also appropriate for India overall and that it is good that
support isn't being pulled back. She added there is evidence of normalisation
of economic activities in India. Traders will also be getting some support on
report stating that growth is of paramount importance now, the Reserve Bank of
India said it will do whatever it takes to sustain the fledgling recovery by
ensuring ample and assured liquidity and cheaper funds to oil the wheels of the
economy. Meanwhile, the Reserve Bank of
India's decision to continue with the accommodative policy stance is reassuring
to the industry and trade, according to chambers. Industry body Assocham said
that this decision would also get immense support from a slew of other critical
measures announced by the central bank. It added that the steps enumerated by
RBI Governor Shaktikanta Das to ensure domestic financial stability in the wake
of volatility in the global financial markets, as was seen in the rising bond
yields. Ficci said that the status quo with regard to the repo rate was
anticipated given the inflation concern. However, it said the bias indicated by
the Central Bank towards maintaining an accommodative stance is reassuring. It
added that the fresh surge in COVID infections is worrying and the imposition
of local lockdowns can undermine the recovery prospects over the near
term. Trades may take note of report
that the Reserve Bank of India announced an extension of interim ways and means
advances (WMAs) limit of Rs 51,560 crore to state governments till September,
to help them tide over the financial stress posed by the second wave of
COVID-19. However, there may be some cautiousness as India has recorded a
massive surge of 126,315 Covid-19 cases in the last 24 hours. With this, India
has seen the biggest-ever daily surge, taking the tally to 12,926,061,
Worldometer showed. Active cases have crossed the 900,000-mark and now stand at
910,264. India is now the 4th-worst hit country in terms of active cases. India
also witnessed a grim record of second-most fatalities due to covid-19 in a
single day in 2021, which stood at 684. The death toll from the deadly
infection stands at 166,892. Maharashtra reported 59,907 new Covid-19 cases in
highest ever single-day spike. The state also reported the highest single-day death
count due to coronavirus since the beginning of the pandemic with 322
fatalities.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
14,683.50
|
14,578.57
|
14,783.77
|
BSE Sensex
|
49,201.39
|
48,897.74
|
49,543.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Adani Ports
|
977.18
|
812.45
|
776.63
|
866.63
|
SBIN
|
480.24
|
358.20
|
349.47
|
365.07
|
Tata Motors
|
390.74
|
307.65
|
304.95
|
310.50
|
ICICI Bank
|
239.84
|
576.75
|
564.10
|
584.70
|
Bharti Airtel
|
209.97
|
541.00
|
535.20
|
546.85
|
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