Indian equity
benchmarks ended the disappointing day of trade in red terrain with Sensex and
Nifty settling below their crucial 48,700 and 14,700 levels, respectively.
Sentiments remain dampened since beginning of the trade as traders remain
worried over economic growth. Rating agency Moody's has cut India's gross
domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier
projection of 13.7 per cent and has ruled out a sovereign rating upgrade - at
least for now. Traders also took note of the United Nations' statement that
India is forecast to grow at 10.1 per cent in 2022, becoming the
fastest-growing major economy in the world, but cautioned that the growth
outlook of 2021 was highly fragile as the country was the new hotbed of the
pandemic. Markets traded continuously in red throughout the day as domestic
rating agency Care Ratings revised its GDP growth forecast for the current
fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier. This is the
fourth revision by the rating agency in its GDP growth forecast for FY2021-22
since March this year. On March 24 this year, it had projected GDP growth for
FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per cent on
April 5 and further to 10.2 per cent on April 21. Sentiments also weighed down
on reports that overall job postings declined by 4 per cent (year-on-year) as
of April and openings for entry-level roles declined by 5 per cent
(month-on-month), according to latest data provided by the company. Industries
like travel and tourism, education and engineering, cement, construction,
iron/steel continue to show decline in job postings. The employment index by
online job search platform Monster saw a decline in job posting activity in
April compared to March by 3 per cent. Finally, the BSE Sensex declined 471.01
points or 0.96% to 48,690.80, while the CNX Nifty was down by 154.25 points or
1.04% to 14,696.50.
The US markets
ended higher on Thursday, rebounding from steep losses in the previous session,
as investors picked up shares after the pullback. Investors shrugged off a
Labor Department report showing producer prices increased by more than expected
in the month of April. The Labor Department said its producer price index for
final demand rose by 0.6 percent in April after jumping by 1.0 percent in March.
Street had expected producer prices to increase by 0.3 percent. The report also
showed the annual rate of producer price growth accelerated to 6.2 percent in
April from 4.2 percent in March, with prices showing the biggest annual
increase since 12-month data were first calculated in November of 2010. Meanwhile,
a separate report from the Labor Department showed first-time claims for US
unemployment benefits fell by more than expected in the week ended May 8th,
dipping to 473,000, a decrease of 34,000 from the previous week's revised level
of 507,000. Street had expected jobless claims to edge down to 490,000 from the
498,000 originally reported for the previous week. With the bigger than
expected decrease, jobless claims once again fell to their lowest level since
hitting 256,000 in the week ended March 14, 2020.
Crude oil futures ended sharply
lower on Thursday, weighed down by rising worries about outlook for energy
demand and on reports that Colonial Pipeline has resumed operations at its
facilities. Concerns over a disruption in the supply chain eased after the
Colonial Pipeline Company announced that it was restarting pipeline operations
and that the supply chain would return to normal sometime soon. Crude oil
futures for June fell $2.26 or 3.4 percent to settle at $63.82 barrel on the
New York Mercantile Exchange. July Brent crude dropped $2.44 or 3.52 percent to
settle at $66.88 a barrel on London's Intercontinental Exchange.
Indian rupee concluded weaker
against dollar on account of continued dollar demand from importers and banks.
Besides, losses in local equity market also hit the rupee sentiment. Traders
were worried as Moody's cut India's gross domestic product (GDP) forecast for
FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled
out a sovereign rating upgrade - at least for now. Adding more pessimism,
domestic rating agency Care Ratings revised its GDP growth forecast for the
current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier.
This is the fourth revision by the rating agency in its GDP growth forecast for
FY2021-22 since March this year. On March 24 this year, it had projected GDP
growth for FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per
cent on April 5 and further to 10.2 per cent on April 21. On the global front,
pound held steady after UK GDP data for March beat market expectations, keeping
investors optimistic about the UK's economic recovery from the pandemic.
Finally, the rupee ended 73.42, weaker by 8 paise from its previous close of
73.34 on Tuesday.
The FIIs as per Wednesday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 7574.74 crore against gross selling of Rs
6858.82 crore, while in the debt segment, the gross purchase was of Rs 64.15
crore with gross sales of Rs 242.33 crore. Besides, in the hybrid segment, the
gross buying was of Rs 1341.67 crore against gross selling of Rs 44.98 crore.
The US markets ended higher on
Thursday after data showed fewer Americans filed new claims for unemployment
benefits last week and producer prices surged last month. Asian markets are
trading mostly in green on Friday following overnight gains on Wall Street.
Indian markets extended their previous session losses and ended sharply lower on
Wednesday as global rating agency Moody's lowered India's GDP forecast for the
financial year 2021-22 and the country reported a record surge in coronavirus
deaths. Markets remain closed on Thursday on account of Id-Ul-Fitr or Ramzan
Eid. Today, the markets are likely to make cautious start amid worries over the
economic impact of the second wave of COVID-19 and lockdowns and restrictions
in various states. Though, drop in Covid cases may support the market
sentiments. India reported a dip in fresh Covid cases to below 3.5 lakh mark at
3,43,122. This was lower than Wednesday's figure of 3,62,720 cases. Besides, V
K Paul, Member (Health), Niti Aayog, said over two billion doses of Covid-19
vaccines will be made available in the country in five months between August
and December, enough to vaccinate the entire population. He added that the
Russian Covid vaccine Sputnik V is also likely to be available by next week.
Market participants will also react to the IIP and CPI numbers released on
Wednesday after market hours. India's factory output climbed 22.4 per cent in
March, benefiting from the base effect of the lockdown-marred month a year back
as well as a turnaround in the manufacturing sector, while retail inflation
slipped to a three-month low of 4.29 per cent in April. Investors are eyeing
WPI inflation data for April slated to be declared later in the day. Some
support may come as Finance Minister Nirmala Sitharaman said renewing stalled
real estate projects will significantly improve economic sentiment in the
country grappling with a second wave of Covid. There will be some buzz in power
stocks with the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook
stating that India added 12.1 gigawatt (GW) power generation capacity in
2020-21, of which 7.7 GW was from renewable energy sources. FMCG stocks will in
focus with a private report indicating that the April-June period remains
largely volatile and dynamic for the country's Rs 4.3-trillion fast-moving
consumer goods (FMCG) industry as the second Covid-19 wave rages on. There will
be some reaction in aluminum sector stocks as the Aluminium Association of
India (AAI) expressed urgent need for at least 5 per cent remission rate for
the sector under the tax refund scheme RoDTEP to ensure global competitiveness.
Meanwhile, PowerGrid Infrastructure Investment Trust (InvIT) IPO shares are
scheduled to be listed on stock exchanges on Friday. The public issue was
subscribed 4.83 times on the last day of the subscription. The Rs 7,735-crore
issue received bids for 205 crore units against 42 crore units on offer. This
is the first Infrastructure Investment Trust (InvIT) in the country to be
floated by a public sector company.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,696.50
|
14,622.79
|
14,797.14
|
BSE
Sensex
|
48,690.80
|
48,437.26
|
49,057.82
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
1,115.84
|
326.00
|
316.59
|
335.09
|
NTPC
|
621.58
|
113.30
|
111.11
|
116.11
|
State
Bank of India
|
534.36
|
367.70
|
361.90
|
373.50
|
Oil
& Natural Gas Corporation
|
497.18
|
115.10
|
112.15
|
119.60
|
Coal
India
|
429.59
|
153.50
|
150.30
|
158.20
|
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