Indian equity benchmarks snapped
their four-day gaining streak to close lower by over half a per cent on
Wednesday due to profit-taking in Energy, Metal and Oil & Gas stocks amid
weak trends in global markets. After the initial down-tick, markets traded with
a negative bias throughout the session as investors preferred to stay on the
sidelines ahead of key Q4 GDP growth data to be out later in the day. Traders
were worried amid a private report which flagged concerns regarding the
achievement of the fiscal deficit target of 5.9 per cent of gross domestic
product (GDP) for the financial year 2023-2024. Sentiments remained weak as
Secretary of the Department for Promotion of Industry and Internal Trade
(DPIIT) Rajesh Kumar Singh stated that hardening interest rates globally and
worsening geo-political situation have impacted the foreign direct investment
(FDI) inflows into India in 2022-23. Key gauges extended their fall in
afternoon deals, as traders got anxious with Reserve Bank of India data report
showing that the number of frauds in the banking sector went up to 13,530 in
2022-23 year-on-year, but the amount involved nearly halved at Rs 30,252 crore.
However, markets managed to trim some of their losses in late afternoon deals,
as traders took some solace with data showing that investment in the Indian
capital markets through participatory notes has seen an upward trend in the
past two months, with the number reaching Rs 95,911 crore in April-end,
primarily driven by the country's robust economic growth. Meanwhile, the
Reserve Bank of India is likely to introduce various policy measures in 2023-24
like the guidelines for expected credit loss-based provisioning. Finally, the
BSE Sensex fell 346.89 points or 0.55% to 62,622.24 and the CNX Nifty was down
by 99.45 points or 0.53% to 18,534.40.
The US markets ended lower on
Wednesday as traders kept a close eye on developments regarding the bill to
raise the U.S. debt ceiling and avoid potentially disastrous default. The debt
bill, which advanced out of the House Rules Committee on Tuesday, is set to be
voted on in the House. In the stock specific developments, 3M, Home Depot,
Travlers Companies and Goldman Sachs ended down 2 to 2.5 percent. NVIDIA
Corporation shares declined nearly 6 percent. Caterpillar, JP Morgan, Chevron,
Honeywell International, IBM and Cisco Systems also ended notably lower.
Hewlett Packard Enterprise shares tumbled more than 6 percent after the
company's revenue fell short of expectations in the latest quarter due to pressure
from weaker PC demand. However, Intel shares climbed nearly 7 percent. Verizon
surged 2.1 percent and Walgreens Boots Alliance gained 1.6 percent. Merck,
Amgen, Salesforce.com, United Health, Apple, Walmart and Boeing posted moderate
gains. On the economic data front, data released by the Labor Department showed
job openings rose to 10.1 million in April from a revised 9.7 million in March.
Street had expected job openings to decrease to 9.4 million. Continued strength
in the labor market may raise concerns about the outlook for interest rates
ahead of Friday's closely watched monthly jobs report.
Crude oil futures ended lower on
Wednesday, magnifying their lost session's losses, as worries about fuel demand
resurfaced after data showed a contraction in manufacturing activity in China.
According to the latest survey from the National Bureau of Statistics, the
manufacturing sector in China continued to contract in May, and at a faster
rate. The NBS Manufacturing PMI fell to a five-month low of 48.8 in May from
49.2 in April. Street had expected a reading of 51.4. The bureau also said the
non-manufacturing index came in with a score of 54.5, again missing forecasts
for 54.9 and down from 56.4 in the previous month. Benchmark crude oil futures
for July delivery fell $1.37 or about 2 percent to settle at $68.09 a barrel on
the New York Mercantile Exchange. Brent crude for August delivery dropped $1.11
or 1.5 percent to settle at $72.60 a barrel on London's Intercontinental
Exchange.
Indian rupee weakened against the
US dollar on Wednesday as intense selling pressure in domestic equities and a
strong greenback overseas dented the sentiment. Traders were worried after
Secretary of the Department for Promotion of Industry and Internal Trade
(DPIIT) Rajesh Kumar Singh stated that hardening interest rates globally and
worsening geo-political situation have impacted the foreign direct investment
(FDI) inflows into India in 2022-23. On the global front, sterling hit a 5-1/2
month high against the euro on Wednesday after data showing lower inflation in
major European markets, but fell against the dollar as investors eyed Bank of
England rate expectations for the pound's direction. Finally, the rupee ended
at 82.74 (Provisional), weaker by 7 paise from its previous close of 82.67 on
Tuesday.
The FIIs as per Wednesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 9950.91 crore against gross selling of Rs 7509.57 crore, while
in the debt segment, the gross purchase was of Rs 1157.31 crore against gross
selling of Rs 508.65 crore. Besides, in the hybrid segment, the gross buying
was of Rs 2.09 crore against gross selling of Rs 12.19 crore.
The US markets ended lower on
Wednesday as investors awaited a crucial vote on a bipartisan deal to suspend
the government debt ceiling and set federal funding limits. Asian markets are
trading mostly in green on Thursday as investors react to regional factory
activity data for May. A private survey showed China's factory activity
unexpectedly swung to growth from a decline in April. Indian markets snapped
four-day winning streak on Wednesday on weak global cues after weak Chinese
data made investors worried about global growth. Today, benchmark indices are
likely to get cautious start amid mixed cues from global counterparts and mixed
economic data from domestic front. There will be some volatility in the markets
ahead of weekly F&O expiry. Investors will be eyeing the manufacturing PMI
data to be out later in the day for more cues. There will be some cautiousness
as the government data showed that the production growth of eight key
infrastructure sectors slowed down to a six-month low of 3.5 per cent in April
2023 due to a decline in the output of crude oil, natural gas, refinery
products and electricity. However, traders may get some encouragement reacting
to the passage of debt ceiling bill by the U.S. House of Representatives and
domestic economic data released after market hours the previous day. Some respite
may come as India's economic growth shot up by 6.1 per cent in the March
quarter of FY23, beating street's expectations, as the expansion in
manufacturing and construction surprised on the upside, reflecting sustained
strength in domestic demand amid a gloomy global outlook. Besides, Chief
Economic Advisor (CEA) V Anantha Nageswaran said the momentum is expected to
continue in the current fiscal year (FY24) with solid growth prospects, on the
back of higher-than-expected economic growth in FY23. Some support will come as
the Centre's fiscal deficit narrowed to 6.4 per cent of the GDP in 2022-23 from
6.71 per cent in FY22, as anticipated by Finance Minister Nirmala Sitharaman in
her Budget in February this year. In the Union Budget, the government aimed to
further bring down the fiscal deficit - a key indicator of borrowing - during
the current financial year 2023-24 to 5.9 per cent of the gross domestic
product (GDP). Meanwhile, the Centre has said it received Rs 1,70,501 crore in
revenue for April 2023, comprising Rs 1,58,901 crore in taxes, Rs 10,958 crore
of non-tax income and Rs 642 crore of non-debt capital receipts. Adani Group
stocks will be in focus today amid fund raising reports. Auto sector stocks
will be in limelight reacting to their monthly sales numbers.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,534.40
|
18,477.54
|
18,597.59
|
BSE
Sensex
|
62,622.24
|
62,389.91
|
62,865.66
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Kotak
Mahindra Bank
|
885.98
|
2011.65
|
1955.56
|
2066.06
|
Oil
& Natural Gas Corporation
|
837.41
|
153.70
|
149.36
|
158.71
|
Bharti
Airtel
|
473.42
|
834.00
|
805.09
|
875.84
|
NTPC
|
417.86
|
172.65
|
170.74
|
175.79
|
Tata
Steel
|
412.50
|
105.85
|
105.31
|
106.66
|
Tata Steel's subsidiary -- Tata Steel Mining has signed a MoU with French Cleantech Company METRON, to design and implement an advanced energy management and optimisation platform for the company's Ferro Alloys Plant located at Athagarh in Odisha's Cuttack district.
Tech Mahindra has entered into a partnership with Bank of Baroda, to deploy digital solutions to enhance customer experience.
Adani Ports and Special Economic Zone has reported marginal rise of 2.64% in its consolidated net profit at Rs 1140.97 crore for Q4FY23 as compared to Rs 1111.63 crore for Q4FY22.
Sun Pharmaceutical Industries has received an approval for the NDA of tildrakizumab injection under the brand name of ILUMETRI from the China NMPA.