Indian equity
benchmarks turned sharply lower during the fag-end of the session, after
staying flat for better part of the day and ended Thursday's session with
losses of over half percent, dragged by losses in index majors ONGC, Sun Pharma
and Power Grid Corporation amid weak global cues. Benchmarks declined for
second straight session with the S&P BSE Sensex fell as much as 337 points
and Nifty 50 index dropped below its important psychological level of 14,950.
After making slightly positive start, key gauges turned negative and stayed in
red for whole day, as traders got anxious with ratings agency ICRA's statement
that sequential growth slackening driven by the second wave of Covid-19 in India
has emerged as a concern. ICRA also cautioned that bruised sentiment, high
healthcare and fuel expenses will limit discretionary purchases in the
immediate term. Some cautiousness came in as India witnessed 276,261 fresh
cases, with the new infection count remaining below the 300,000-mark for the
fourth consecutive day. Markets extended losses in late afternoon session, amid
a private report stating that almost 80 per cent of all income losses during
the first wave of the pandemic in 2020 were incurred by the private sector in
India, while in many other countries the entire loss was on respective
governments. However, losses remain capped as traders found some support with
Minister of State for Chemicals and Fertilisers Mansukh L Mandaviya's statement
that the government is monitoring the supply of various essential drugs used in
the treatment of COVID-19. The minister noted that all drugs used in the
management of COVID-19 were now available in India by ramping up production and
increasing the imports. Meanwhile, Income Tax Department is expected to launch
a new e-filing web portal for taxpayers, which they use to file routine ITRs
and perform other tax-related works, early next month. Finally, the BSE Sensex
lost 337.78 points or 0.68% to 49,564.86, while the CNX Nifty was down by
124.10 points or 0.83% to 14,906.05.
The US markets
ended higher on Thursday buoyed by data showing a drop in jobless claims last
week. Further, Technology stocks posted strong gains, contributing
significantly to market's strong close. Besides, Bitcoin's rebound after a
terrible setback in the previous session aided sentiment. A few encouraging
earnings announcements helped as well.
Data released by the Labor Department showed unemployment claims in the
US dropped by slightly more than expected in the week ending May 15th. The data
showed that initial unemployment claims in the US fell to 444,000 last week,
down from a revised 478,000 claims in the previous week. Street had expected
unemployment claims to drop to around 450,000 in the week ending May 15th. The
much bigger than expected decrease in jobless claims makes the number the lowest
since the week ended March 14, when it had dropped to 256,000. The Labor
Department's data also showed that the number of continuing claims unexpectedly
rose by 111,000 last week to 3.75 million, hitting a seven-week high. The
four-week moving average of US jobless claims, which removes week-to-week
volatility, dropped to a fourteen-month low of 504,750 in the week, down from a
revised 535,250 in the previous week. Meanwhile, the Philadelphia Fed
Manufacturing Index fell to 31.5 in May from 50.2 in April which was the
strongest reading in nearly 50 years. Figures also came below forecasts of 43.
The index of business conditions fell sharply to 52.7 in April, from 66.6.
Crude oil futures ended lower for
third straight day on Thursday as signs of progress in Iran nuclear talks
raised expectations that global crude supply will see a surge in the near term.
Iran's president Hassan Rouhani said the broad outline of a deal to end
sanctions on its oil had been reached. According to private report, Rouhani
said that all parties to the talks have agreed to lift all major sanctions on
oil, petrochemicals, shipping, insurance, the central bank and so on. However,
worries about outlook for energy demand due to the surge in coronavirus cases
in Asian countries and possible stricter restrictions on movements in several
places in Asia weighed on oil prices. Crude oil futures for June fell $1.31 or
about 2.1 percent to settle at $62.05 barrel on the New York Mercantile
Exchange. July Brent crude dropped $1.55 or 2.3 percent to settle at $65.11 a
barrel on London's Intercontinental Exchange
Indian rupee ended higher against
dollar on Thursday, on persistent selling of the American currency by
exporters. Some support came in as government is aiming to conclude
privatisation of PSUs - where the divestment process has already started - this
fiscal. The Budget for 2021-22 has set a disinvestment target of Rs 1.75 lakh
crore, higher than Rs 32,835 crore garnered in the last fiscal. However, upside
remained capped as ICRA in its latest report has said that uptick in headline
numbers of key economic indicators in April is due to the base effect and that
the economy is headed into rough patch as consumer sentiment is down in the dumps
due to the second wave of the pandemic. On the global front, dollar edged lower
on Thursday but remained well above three-month lows hit overnight after
minutes from the Federal Reserve's last policy meeting revealed there was more
talk of tapering its bond purchases than investors had expected. Finally, the
rupee ended 73.12, stronger by 6 paise from its previous close of 73.18 on
Wednesday.
The FIIs as per Thursday's data
were net buyer in both equity and debt segment. In equity segment, the gross buying
was of Rs 9235.20 crore against gross selling of Rs 6702.31 crore, while in the
debt segment, the gross purchase was of Rs 1451.64 crore with gross sales of Rs
1072.57 crore. Besides, in the hybrid segment, the gross buying was of Rs 14.10
crore against gross selling of Rs 78.97 crore.
The US markets ended higher on
Thursday buoyed by gains in technology stocks as the smallest weekly jobless
claims since the start of a pandemic-driven recession lifted the mood. Asian
markets are trading mostly in green on Friday following an overnight bounce on
Wall Street. Indian markets ended nearly a percent lower on Thursday dragged
mainly by metals and banking stocks, as losses in Asian peers also weighed on
the sentiment. Today, the markets are likely to start the last trading session
of this week on a firm note, on the back of favourable global cues. Dip in
daily Covid cases is likely to support market sentiment. The new infection
count remained below the 300,000-mark for the fifth consecutive day in India as
it witnessed a spike of 259,269 fresh coronavirus cases. Some support will come
as the Ministry of External Affairs said India is engaged with American
entities for procurement of COVID-19 vaccines from the US and their possible
manufacturing in the country subsequently. Hit by a devastating second wave of
the coronavirus pandemic, India has been focusing on ramping up domestic
production of COVID-19 vaccines as well their procurement from abroad. Traders
may take note of report that the International Monetary Fund stands ready to
strengthen its dialogue and scale-up its technical collaboration with India,
observing that the human tragedy is a stark reminder that the pandemic
continues to be a grave threat globally. Besides, in view of hardships faced by
taxpayers because of the pandemic, the government has extended several income
tax (I-T) compliance timelines, including 2020-21 income tax returns (ITR), for
individuals by two months to September 30. Meanwhile, Indian government may
form a committee of experts to oversee cryptocurrency trade in the country as
it looks at possibilities to regulate the digital currency instead of banning
it altogether. Auto stocks will be in focus as ratings agency ICRA said the
second wave of Covid-19 has dented the recovery momentum of automobile sector's
Original Equipment Manufacturers (OEMs) and auto-ancillaries. There will be
some reaction in sugar industry stocks as the Centre slashed subsidy on sugar
exports from Rs 6,000 per tonne to Rs 4,000 per tonne with immediate effect in
view of firm global prices. There will be lots of important earnings
announcements too, to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,906.05
|
14,837.36
|
15,022.26
|
BSE
Sensex
|
49,564.86
|
49,341.37
|
49,943.76
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Indian
Oil Corporation
|
564.82
|
104.70
|
102.90
|
108.10
|
Tata
Motors
|
540.43
|
307.70
|
303.66
|
314.16
|
State
Bank of India
|
428.98
|
384.55
|
381.76
|
387.56
|
Hindalco
Industries
|
306.89
|
385.20
|
378.70
|
392.45
|
Tata
Steel
|
284.46
|
1105.05
|
1,090.24
|
1,127.69
|
Cipla has launched a polymerase chain reaction test kit ViraGen for COVID-19 in India, in partnership with Ubio Biotechnology Systems.
Infosys has collaborated with the Centre for Accessibility Australia to help drive awareness and inspire a more accessible and inclusive community via the Australian Access Awards.
SBI has launched a full power YONO Savings Account that can be opened instantly with Video KYC in 4 simple steps.
Bajaj Finserv's subsidiary company -- Bajaj Allianz Life is planning to offer financial support of up to Rs 1 crore to the family of its employees impacted by COVID-19.