In a volatile
session, Indian equity benchmarks snapped their three-day winning streak and
ended with losses on Friday as the increase in new Covid-19 cases to
unprecedented levels, raising the prospects of wider lockdown restrictions in
the country, continued to batter investors' sentiment. The benchmarks opened
lower amid largely negative cues from global markets. Some concern also came
with ICRA Ratings' report that an unabated increase in the COVID cases is
likely to bring about fears of harsher lockdowns, which could impact the asset
quality of retail loans especially for unsecured loans such as in the
microfinance sector. It said this, in turn, would impact the fund-raising ability
of the NBFCs and HFCs through securitisation of their assets. However, markets
managed to trim all losses to trade in positive terrain in morning deals,
taking support from Crisil Ratings' report that after eight quarters of either
decline or single-digit growth, corporate revenue grew in high double-digits of
15-17 per cent in the March quarter of FY21 to Rs 6.9 lakh crore, partly
because of the low base and better realisation due to higher commodity prices,
pushing up their operating profits by a much higher 28-30 per cent. But,
domestic equity markets once again entered into red terrain in late morning
deals with continued selling pressure from metal, power and banking stocks.
Traders overlooked Moody's Investors Service's report that high-frequency
alternative data indicates a strong rebound in economic activity even as
infection rates rise and restrictive measures remain in place across many
countries. New infections are spiking again across 13 of the G-20 countries.
Nevertheless, the number of fatalities has decreased in recent weeks as
vaccinations gather pace. Traders also paid no heed towards Ministry of Finance
latest report stating that provisional Direct Tax collections for the Financial
Year 2020-21 show growth of almost 5%, as net collections are at Rs 9.45 lakh
crore. The net Direct Tax collections include Corporation Tax (CIT) at Rs 4.57
lakh crore and Personal Income Tax (PIT) including Security Transaction Tax
(STT) at Rs 4.88 lakh crore. Finally, the BSE Sensex fell 154.89 points or 0.31%
to 49,591.32, while the CNX Nifty was down by 38.95 points or 0.26% to
14,834.85.
The US markets
ended higher on Friday with the Dow and the S&P 500 reaching new record
closing highs. The strength that emerged on markets reflected continued
optimism about a swift recovery by the US economy. Traders were hopeful about
the economy fully reopening as the latest data from the Centers for Disease
Control shows nearly 20 percent of Americans are fully vaccinated against the
coronavirus. Further, repeated assurances the Federal Reserve will maintain its
ultra-easy monetary policy for the foreseeable future also generated continued
buying interest. On the economic data front, wholesale inventories in the US
increased by slightly more than anticipated in the month of February, the
Commerce Department revealed in a report. The report said wholesale inventories
climbed by 0.6 percent in February after spiking by an upwardly revised 1.4
percent in January. Street had expected wholesale inventories to rise by 0.5
percent compared to the 1.3 percent jump originally reported for the previous
month. Meanwhile, producer prices in the US jumped by much more than expected
in the month of March, according to a report released by the Labor Department.
The Labor Department said its producer price index for final demand surged up
by 1.0 percent in March after climbing by 0.5 percent in February. Street had
expected another 0.5 percent increase.
Crude oil futures ended lower on
Friday as worries about outlook for energy demand amid continued surge in
coronavirus cases and lockdown restrictions weighed on oil's prices. Meanwhile,
the decision of the Organization of the Petroleum Exporting Countries and
allied producers to gradually increase their output by 2 million barrels per
day between May and July, raised concerns about possible excess supply in the
market if lockdown restrictions remain in place for a longer duration. Besides,
in India, refiners are reportedly holding back crude runs as demand slows, with
headwinds ahead in the near term, including high fuel prices and localized
lockdowns due to rising cases of covid-19 in several states. Crude oil futures
for May fell $0.28 or 0.5 percent to settle at $59.32 barrel on the New York
Mercantile Exchange. June Brent crude dropped $0.23 or 0.36 percent to settle
at $62.97 a barrel on London's Intercontinental Exchange.
Continuing previous session
drubbing, Indian rupee tumbled against dollar on Friday, on account of sustained
dollar demand from importers and banks. Traders were worried with ICRA Ratings'
report that an unabated increase in the COVID cases is likely to bring about
fears of harsher lockdowns, which could impact the asset quality of retail
loans especially for unsecured loans such as in the microfinance sector. It
said this, in turn, would impact the fund-raising ability of the NBFCs and HFCs
through securitisation of their assets. Downfall in the Indian equity markets
also impacted sentiments. On the global front, dollar recovered slightly on
Friday but was still heading for its softest week of the year after
surprisingly weak U.S. jobs figures the previous day and ongoing loose Federal
Reserve policy prompted investors to trim their bets. Finally, the rupee ended
74.73, weaker by 15 paise from its previous close of 74.58 on Thursday.
The FIIs as per Friday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 10195.16 crore against gross selling of Rs 8111.65 crore,
while in the debt segment, the gross purchase was of Rs 570.58 crore with gross
sales of Rs 481.66 crore. Besides, in the hybrid segment, the gross buying was
of Rs 13.46 crore against gross selling of Rs 19.60 crore.
The US markets ended higher on
Friday after solid US inflation data and an uptick in Treasury yields suggested
the economic recovery from the pandemic-related recession was gaining momentum.
Asian markets are trading mostly in red on Monday as investors wait to see if
US earnings can justify sky-high valuations, while bond markets could be tested
by what should be very strong readings for US inflation and retail sales this
week. Indian markets ended lower on Friday dragged by losses in metals, private
banks and auto stocks. Today, the start of holiday shortened week is likely to
be gap-down amid weakness in Asian peers. Market participants will be eyeing in
the macro-economic data -- consumer price index (CPI) and the Index of
Industrial Production (IIP) -- to be out later in the day. Concerns over rising
COVID-19 cases in the country and fears of lockdown in certain states may also
weigh on market sentiment. Breaking all records, India has recorded a massive
surge of 169,899 Covid-19 cases in the last 24 hours. Worldometer showed that
with this, India has once again taken its spot as the second-worst hit nation
with 13,525,364 cases in total. Maharashtra on Sunday reported over 63,000 new
coronavirus cases in its highest ever single-day surge along with 349 deaths.
There will be some cautiousness with report that foreign portfolio investors
(FPIs) have withdrawn a net Rs 929 crore from Indian markets so far this month
amid concerns over rising COVID-19 cases denting the economic recovery.
However, some support may come later in the day as Finance Minister Nirmala
Sitharaman urged the World Bank Group (WBG) to explore the possibility of
sustaining crisis response keeping in mind debt sustainability of vulnerable
countries. Traders may take note of report that Fitch Solutions sees RBI
keeping benchmark interest rates unchanged during the fiscal to March 2022
following its decision to buy Rs 1 lakh crore of government bonds. Meanwhile,
the government may hike foreign direct investment (FDI) limit in the pension
sector to 74 percent and a Bill in this regard is expected to come in the next
Parliament session. Pharma stocks will be in focus with report that Gilead has
signed non-exclusive voluntary licensing agreements with pharma companies
including Cipla, Dr Reddy's Laboratories, Jubilant Lifesciences, Syngene, a
Biocon company and Zydus Cadila Healthcare to manufacture remdesivir for
distribution in 127 countries. There will be some reaction in telecom stocks as
the Department of Telecommunications (DoT) is likely to issue guidelines on the
implementation of production-linked incentive (PLI) schemes for manufacturers
in the sector and start inviting applications for the same in about a week.
Auto stocks will be in limelight with Icra's report that the fresh restrictions
imposed in Maharashtra to contain the second wave of COVID-19 are likely to
impact the festive season auto sales, as Navaratri and Gudi Padwa are falling
in April. 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
|
14,834.85
|
14,774.19
|
14,906.99
|
BSE
Sensex
|
49,591.32
|
49,399.25
|
49,845.15
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
754.62
|
318.20
|
312.14
|
324.64
|
JSW
Steel
|
510.62
|
621.00
|
602.39
|
635.24
|
State
Bank of India
|
464.73
|
353.00
|
347.96
|
361.26
|
Tata
Steel
|
321.79
|
899.50
|
880.14
|
924.44
|
ICICI
Bank
|
232.39
|
566.20
|
561.14
|
575.14
|
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ICICI Bank has introduced iDelights Summer Bonanza, a customised bouquet of offers for its customers for the summer of 2021.
Asian Paints has forayed into the world of furnishing.
L&T's Power Transmission & Distribution Business has secured a turnkey EPC Contract from the consortium of ACWA Power and the Water and Electricity Holding Company, for Sudair Solar PV Project of 1.5GW capacity.