Indian equity benchmarks ended
volatile session in red on Tuesday. After a cautious start, markets traded
volatile, as ICRA Ratings said the economic growth may have slowed to 3.5 per
cent in fourth quarter of 2021-22 from 5.4 per cent in the previous three-month
period due to the impact of higher commodity prices on margins, decline in
wheat yields and on higher base. The agency said the hiccups in the recovery of
the contact-intensive services attributable to the third wave of COVID-19 in
the country may have also affected the economic growth in the quarter. In early
afternoon deals, key indices managed to trade in green terrain for a little
time. Domestic sentiments were positive, as capital markets regulator Sebi
allowed mutual funds to launch passively managed Equity-Linked Savings Schemes
(ELSS). But again, markets came back in red in the last hours of the trade to end
on a lower note, amid a private report stating that the Centre's decision to
cut excise duty on petrol and diesel will put pressure on the fiscal deficit
which has been estimated at 6.4 per cent of GDP for the current financial year.
Besides, metal stocks remained in focus as Icra reacting to the duty-related
measures taken by the government said the domestic steel sector has been hit by
a moving train. Besides, infra sector stock were also in focus, as Credit
rating agency, India Ratings and Research (Ind-Ra) in its latest report has
maintained a neutral outlook for the overall infrastructure sector for FY23,
amid likelihood of a stable operating performance for majority of the projects,
long-term visibility of revenue under concession agreements and power purchase
agreements, and expected improved cargo and traffic volumes. Finally, the BSE
Sensex fell 236.00 points or 0.43% to 54052.61 and the CNX Nifty was down by
89.55 points or 0.55% to 16125.15.
Giving back ground following the
strong upward move seen in the previous session, the US markets ended mostly
lower on Tuesday. The tech-heavy Nasdaq showed a particularly steep drop on the
day, ending the session at its lowest closing level since November of 2020. A
steep drop by shares of Snap Inc. (SNAP) weighed on the tech sector, with the
Snapchat parent plummeting by 43.1 percent to a two-year closing low. The plunge
by Snap comes after the company warned of weaker than expected second quarter
results, saying the 'macroeconomic environment has deteriorated further and
faster than anticipated.' Weakness overseas also carried over onto Wall Street,
as a broad package of Chinese measures to support the economy underwhelmed
investors. The pullback also came amid lingering concerns aggressive interest
rate hikes by the Federal Reserve could lead to a recession. On Wednesday, the
Fed is due to release the minutes from its latest monetary policy meeting,
which may shed additional light on the outlook for rates. Adding pessimism on
Wall Street, the Commerce Department released a report showing a much steeper
than expected drop in new home sales in the month of April. The report showed
new home sales plunged by 16.6 percent to an annual rate of 591,000 in April
after tumbling by 10.5 percent to a revised rate of 709,000 in March. Street
had expected new home sales to slump 1.7 percent to a rate of 750,000 from the
763,000 originally reported for the previous month. With the much bigger than
expected decrease, new home sales dropped to their lowest annual rate since
hitting 582,000 in April of 2020.
Crude oil futures settled
marginally lower on Tuesday amid reports that U.S. Energy Secretary Jennifer
Granholm said the Biden administration hasn't ruled out a ban on petroleum
exports. Though, downside remained capped on optimism around plans to unwind
lengthy lockdowns in Shanghai, China's largest city, but uncertainty lingers
over crude demand from the world's largest oil importer as Beijing increased
quarantine efforts in an effort to halt a COVID-19 outbreak. Meanwhile, markets
look ahead to weekly oil reports from American Petroleum Institute (API) and
U.S. Energy Information Administration (EIA). Benchmark crude oil futures for
July delivery fell 52 cents or 0.5% percent to settle at $109.77 a barrel on
the New York Mercantile Exchange. However, Brent crude for July delivery added
14 cents or 0.1 percent to settle at $113.56 a barrel on London's
Intercontinental Exchange.
Indian rupee ended tad lower
against dollar on account of sustained dollar demand from importers and banks.
Traders were worried as ICRA Ratings said the economic growth may have slowed
to 3.5 per cent in fourth quarter of 2021-22 from 5.4 per cent in the previous
three-month period due to the impact of higher commodity prices on margins,
decline in wheat yields and on higher base. However, downfall remain capped as
India and US signed an Investment Incentive Agreement (IIA) at Tokyo. It is a
legal requirement for continuing US investment support. The pact would activate
proposals worth $4 billion that are under consideration by the US International
Development Finance Corporation (DFC). On the global front, euro rose to a
one-month high on Tuesday after European Central Bank President Christine
Lagarde said interest rates in the eurozone will likely be in positive
territory by the end of the third quarter. Finally, the rupee ended at 77.57
(Provisional), weaker by 2 paise from its previous close of 77.55 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 7232.40 crore against gross selling of Rs 8517.06 crore, while
in the debt segment, the gross purchase was of Rs 82.46 crore against gross
selling of Rs 267.73 crore. Besides, in the hybrid segment, the gross buying
was of Rs 2.41 crore against gross selling of Rs 2.77 crore.
The US markets settled mostly
lower on Tuesday as worries that aggressive moves to curb decades-high
inflation might tip the US economy into recession dampened investors' risk
appetite. Asian markets are trading mostly in green on Wednesday shrugging off
a mixed session on Wall Street overnight, though global growth concerns and
weak US data keep investors on the back foot. Indian markets failed to hold on
to the green for yet another day on Tuesday amid volatile trade on Dalal
Street. Losses in IT and FMCG shares pulled the headline indices lower. Today,
markets are likely to open in green following gains in Asian counterparts.
Sentiments will get a boost with a report that the country's exports rose by
21.1 percent to $23.7 billion during May 1-21, on account of healthy growth in
various sectors, such as petroleum products, engineering, and electronic goods.
During the second week of this month (May 15-21), the exports grew by about 24
percent to $8.03 billion. Traders may take note of report that pitching India
as one of the best investment destinations globally, Union Minister Piyush
Goyal asked global business leaders at the World Economic Forum Annual Meeting
to come to India and grow with India. Besides, the commerce and industry
ministry said as many as 853 foreign direct investment proposals have been disposed
of through the foreign investment facilitation portal in the last five years.
However, some cautiousness may come as Former World Bank chief economist
Kaushik Basu said that even though the fundamentals of the Indian economy are
strong, the rise in divisiveness and polarisation in the country is damaging
the foundations of the nation's growth. Basu further said India's big challenge
is unemployment and joblessness as youth unemployment in India is over 24 per
cent, which is among the highest in the world. Meanwhile, stressing on the need
to focus more on services sector exports, Union Minister Piyush Goyal said it
can help boost the country's overall exports further and called for the
government and the businesses to support each other. There will be some buzz in
edible oil industry stocks as the government scrapped customs duty and
agriculture infrastructure development cess on the import of crude soyabean oil
and crude sunflower oil for 20 lakh metric tonnes each per year to ease local
prices. Coal industry stocks will be in focus as the government said to meet
the rising power demand, coal production increased to 34 million tonnes (MT) in
the first half of May, adding that total coal production increased to 33.94 MT,
achieving a growth of 36.23 per cent over the production of 24.91 MT during the
same period last year. There will be some reaction in sugar sector stocks as
the government imposed restrictions on sugar exports from June 1, a move aimed
at increasing availability of the commodity in the domestic market and curbing
price rise. In the primary market, Aether Industries' IPO received a 33 per
cent subscription on the first day of booking. Investors awaited the last leg
of earnings reports from India Inc for cues.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,125.15
|
16,048.24
|
16,232.44
|
BSE
Sensex
|
54,052.61
|
53,784.47
|
54,422.56
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil & Natural Gas Corporation
|
191.41
|
151.00
|
148.19
|
155.79
|
State Bank of India
|
171.75
|
463.00
|
459.86
|
466.46
|
NTPC
|
165.81
|
147.00
|
144.91
|
150.46
|
ITC
|
155.47
|
271.00
|
269.00
|
274.00
|
Tata Motors
|
145.25
|
424.70
|
417.96
|
429.46
|
HDFC Bank has teamed up with Retailio and rolled out new range of co-branded credit cards. This card primarily targeted at chemists and pharmacies in the merchant segment.
IndusInd Bank and Mahagram have joined hands to enhance digital payments ecosystem in the country.
Infosys has been selected by Backcountry to deliver a seamless and secure digital experience making it even easier for customers to pursue their outdoor passions.
ONGC has become the first gas producer to trade domestic gas on the Indian Gas Exchange, trading unspecified volumes from its eastern offshore KG-DWN-98/2 block.