Extending
previous session's bullish run, Indian equity benchmarks ended the Tuesday's
trade near intraday highs with frontline gauges settling above their crucial
48,900 (Sensex) and 14,650 (Nifty) levels. Markets started the session on
positive note as slightly fall in daily coronavirus cases kept traders
optimistic throughout the day. India reported a slight dip in the number of
fresh Covid infections and fatalities on Tuesday with 319,435 cases and 2,764
deaths, Worldometer showed. Traders also took some support with report that the
commerce ministry said it has started a COVID-19 helpdesk to help resolve
issues of exporters and importers pertaining to international trade such as
customs clearance delays and banking matters. Traders overlooked report that
global forecasting firm Oxford Economics revised downwards its India GDP growth
forecast for 2021 to 10.2 percent from 11.8 percent previously, citing the
country's escalating health burden, faltering vaccination rate and lack of a
convincing government strategy to contain the pandemic. Meanwhile, Reserve Bank
of India (RBI) in its April 2021monthly Bulletin has said that as India battles
the ferocious rise of new infections, a strong policy response is building.
Economic activity in India is holding up against COVID -19's renewed onslaught.
Apart from contact-intensive sectors, activity indicators largely remained
resilient in March and grew beyond pre-pandemic levels. Traders continue to buy
fundamentally strong stocks throughout the day and markets breached crucial
psychological levels one after other. Traders took some support with report
that bank credit grew by 5.33 per cent to Rs 108.89 lakh crore, and deposits
rose 10.94 per cent to Rs 152.15 lakh crore in the fortnight ended April 9,
2021. In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38
lakh crore and deposits were Rs 137.15 lakh crore. Additional support also came
as Biden administration seems to have adopted a mission mode approach and
removed all bureaucratic hurdles to help India in its fight against deadly
COVID-19 pandemic that has spread like wildfire across the country. Traders
took note of report that the commerce ministry said it has started a COVID-19 helpdesk
to help resolve issues of exporters and importers pertaining to international
trade such as customs clearance delays and banking matters. Finally, the BSE
Sensex surged 557.63 points or 1.15% to 48,944.14, while the CNX Nifty was up
by 168.05 points or 1.16% to 14,653.05.
The US markets
ended mostly lower on Tuesday as many traders stuck to the sidelines ahead of
the Federal Reserve's latest monetary policy decision. The Fed is widely
expected to maintain its ultra-easy monetary policy, but traders will be paying
close attention to any changes to the accompanying statement that may signal a
shift in the near future. A mixed reaction to the latest earnings news also
contributed to the lackluster performance, with several big-name companies also
reporting their quarterly results after the close of trading. Shares of Tesla
moved sharply lower even though the electric car maker reported better than
expected first quarter results. Conglomerates General Electric and 3M also
moved to the downside despite reporting first quarter earnings that beat
expectations. On the economic data front, reflecting a significant improvement
in consumers' assessment of current conditions, the Conference Board released a
report showing US consumer confidence reached its highest level since February
of 2020 in the month of April. The Conference Board said its consumer
confidence index jumped to 121.7 in April after spiking to a revised 109.0 in
March. Street had expected the consumer confidence index to rise to 112.0 from
the 109.7 originally reported for the previous month. The much bigger than
expected increase by the headline index came as the present situation index
soared to 139.6 in April from 110.1 in March. The percentage of consumers
claiming business conditions are good rose to 23.3 percent from 18.3 percent,
while the percentage claiming conditions are 'bad' fell to 24.8 percent from
30.1 percent.
Crude oil futures ended higher on
Tuesday as the decision by the Organization of the Petroleum Exporting
Countries (OPEC) and its allies to gradually increase oil output helped offset
concerns about energy demand. OPEC and its allies led by Russia, together known
as OPEC+, decided to stick to their plan of gradually raising oil production
beginning in May. The cartel advanced their meeting, which had been originally
scheduled to take place on Wednesday. However, the rapid spread of the
coronavirus in India and Latin America was a concern. India, the world's
third-largest crude importer, has recorded a daily rise of more than 300,000
cases for several days. It has also reported a total of almost 200,000 deaths. Crude
oil futures for June rose $1.03 or 1.7 percent to settle at $62.94 barrel on
the New York Mercantile Exchange. June Brent crude gained $0.77 or 1.17 percent
to settle at $66.42 a barrel on London's Intercontinental Exchange.
Indian rupee ended significantly
higher against dollar on Tuesday, on persistent selling of the American
currency by exporters. This was the second consecutive session when the rupee
was traded higher against dollar. Sentiments were upbeat as bank credit grew by
5.33 per cent to Rs 108.89 lakh crore, and deposits rose 10.94 per cent to Rs
152.15 lakh crore in the fortnight ended April 9, 2021. In the fortnight ended
April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were
Rs 137.15 lakh crore. Besides, healthy gains in the domestic equity markets
also added to the rupee. On the global front; sterling slipped against the
dollar on Tuesday, but remained within the previous session's ranges and
stabilised against the euro, still struggling to regain the momentum it had in
the first quarter of 2021. Finally, the rupee ended 74.66, stronger by 7 paise
from its previous close of 74.73 on Monday.
The FIIs as per Tuesday's data
were net seller in equity segment, while net buyer in debt segment. In equity
segment, the gross buying was of Rs 7794.54 crore against gross selling of Rs
8849.92 crore, while in the debt segment, the gross purchase was of Rs 994.59
crore against gross selling of Rs 866.06 crore. Besides, in the hybrid segment,
the gross buying was of Rs 466.12 crore against gross selling of Rs 41.30
crore.
The US markets ended mostly in
red on Tuesday as investors focused on wave of earnings reports from Microsoft,
Alphabet and other corporate heavyweights. Asian markets are trading mixed on
Wednesday as already high valuations discouraged investors from buying equities
ahead of a closely-watched U.S. Federal Reserve meeting. Indian markets ended
higher Tuesday led by strong gains in metals, banks and auto stocks. Today, the
markets are likely to get flat-to-positive start amid mixed global cues. Some
support will come with report that as the registration for the next phase of
Covid-19 vaccinations for all above 18 years of age opens, the health ministry
shared data to counter claims that vaccines in several states, including
Maharashtra, were out of stock. The data showed that 150 million doses had been
given to the states so far, of which 10 million were still available with them.
Traders may take note of the commerce ministry's statement that the country's
exports of organic food products rose by 51 percent year-on-year to $1 billion
(Rs 7,078 crore) in 2020-21. However, traders will be concerned as a day after
reported a slight dip in the number of fresh Covid infections and fatalities,
India on Wednesday recorded a massive surge of 362,902 cases and 3,285 deaths,
Worldometer showed. There will be some cautiousness as Brickwork Ratings
revised downwards the country's FY22 GDP growth projection to 9 percent from an
earlier estimate of 11 percent. Brickwork Ratings in a report said the deadly
second wave of COVID-19 has brought an abrupt halt to the country's nascent
economic recovery from the pandemic. Also, a private report stating that
business activity has fallen by a fourth of the pre-COVID levels due to
lockdowns imposed by states to contain the spread of the second wave of
COVID-19. Meanwhile, Markets regulator Sebi came out with new framework to
strengthen policies on provisional rating by credit rating agencies (CRAs) for
debt instruments. Under the framework, all provisional ratings (long term or
short term) for debt instruments need to be prefixed as provisional before the
rating symbol in all communications-- rating letter, press release and rating
rationale. MSMEs industry stocks will be in limelight amid report that stung by
the second wave of the Covid-19 pandemic, small businesses have urged Finance
Minister Nirmala Sitharaman to review classification norms for bad loans and
rationalise import duty on key raw materials such as iron and steel. There will
be some reaction in telecom stocks as domestic credit rating agency Crisil's
research wing pointed out that there is a close contest between the top two
telcos, when one goes by active subscriber base with Jio's share at 33.7 per
cent and Airtel's at 33.6 per cent. Non-banking financial companies (NBFCs)
will be in focus as they are seeking a revival of the debt restructuring scheme
amid the resurgence of Covid-19 and with states imposing lockdowns. There will
be some important earnings announcements too to keep the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,653.05
|
14,536.09
|
14,718.79
|
BSE
Sensex
|
48,944.14
|
48,559.36
|
49,169.09
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Axis
Bank
|
465.59
|
699.55
|
687.80
|
707.60
|
State
Bank of India
|
460.03
|
353.05
|
345.31
|
357.86
|
Hindalco
Industries
|
412.63
|
366.25
|
354.24
|
374.14
|
Tata
Motors
|
350.40
|
301.50
|
296.90
|
304.30
|
Tata
Steel
|
249.04
|
977.75
|
953.70
|
992.40
|
Tech Mahindra through its wholly owned subsidiary -- Tech Mahindra (Americas) Inc. has approved the proposal to acquire 100% equity shares in Eventus.
Tata Motors has set in motion a business plan to protect and serve the interests of its customers, dealers and suppliers as the lockdowns enforced in various parts of the country are expected to impact vehicle demand temporarily.
HDFC Life Insurance has recorded 17 per cent growth in terms of individual weighted received premium during FY21 on a base of 19 per cent growth in FY20.
SBI is planning to raise long term fund in single / multiple tranches up to $2 Billion under Reg-S/144A, through a public offer and / or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY22.