Indian equity benchmarks pared
all of their intraday gains to end lower on Friday due to fag-end selling in
heavyweights Axis Bank, Power Grid Corporation and Wipro. Key gauges made
optimistic start and stayed in green for most part of the day, as traders found
some support with the third quarterly employment survey (QES) by the labour
ministry showed that employment in nine select non-farm sectors stood at 31.45
million in the October-December 2021 quarter, 0.39 million more than the
July-September period and 0.65 million higher than April-June, 2021. Some
optimism also came with stock exchange data showed foreign institutional
investors turned net buyers after their continuous selling spree for the past
many days, as they bought shares worth Rs 743.22 crore on Thursday.
Additionally, with an aim to reduce imports of the country, the commerce
ministry has made a case for encouraging domestic manufacturing of 102 items
like chemicals, electronic products and insulin injection as their share in the
country's total imports are high. However, key indices reversed the trend and
turned sharply lower in the last hour of trade, as traders got cautious with
rating agency ICRA stating that capacity utilisation in India is expected to
dip in the first quarter of current fiscal and is expected to gradually rise by
the third quarter, and indicated that the economic recovery will be hurt by the
Russia Ukraine tensions, however it will see recovery by the end of the year.
Meanwhile, the Reserve Bank of India (RBI) has modified norms for banks to
claim the amount of interest subvention provided to farmers under the
short-term crop loan scheme through Kisan Credit Card (KCC) during 2021-22.
Pending claims for the 2021-22 financial year can be submitted by June 30, 2023,
and those have to be duly certified by the statutory auditors as true and
correct. Finally, the BSE Sensex fell 460.19 points or 0.80% to 57,060.87 and
the CNX Nifty was down by 142.50 points or 0.83% to 17,102.55.
The US markets closed sharply
lower on Friday with the Nasdaq plunging to its lowest closing level since late
November 2020 as the tech-heavy index showing a 13.3 percent nosedive. A
negative reaction to the latest batch of earnings news contributed to the sharp
pullback on Wall Street, with shares of Amazon (AMZN) plummeting by 14.1
percent to their lowest closing level in almost two years. The steep drop by
Amazon came after the online retail giant reported an unexpected first quarter
loss and provided disappointing revenue guidance for the current quarter.
Semiconductor giant Intel (INTC) also tumbled by 6.9 percent after reporting
first quarter results that exceeded analyst estimates but issuing weak guidance
for the second quarter. Traders also remain cautious ahead next week's Federal
Reserve meeting, with the central bank widely expected to raise interest rates
by 50 basis points. On the economic front, a report released by the Commerce
Department showed U.S. personal income increased by slightly more than expected
in the month of March, while U.S. personal spending jumped by much more than
anticipated. The Commerce Department said personal income rose by 0.5 percent
in March after climbing by an upwardly revised 0.7 percent in February. Street
had expected personal income to rise by 0.4 percent compared to the 0.5 percent
increase originally reported for the previous month. The report also showed
personal spending jumped by 1.1 percent in March after advancing by an upwardly
revised 0.6 percent in February. Personal spending was expected to increase by
0.7 percent compared to the 0.2 percent uptick originally reported for the
previous month.
Snapping a three-day winning
streak, crude oil futures ended lower on Friday as worries about outlook for
energy demand weighed on prices. Oil prices surged earlier in the session as
worries about supply outweighed concerns over outlook for oil demand. The
sanctions on Russia is expected to reduce the supplies of crude from Russia far
more than the reduction in demand from China, where several places are under
coronvirus curbs. A report released by Baker Hughes showed Oil rigs count in
the U.S. rose by 3 to 552 in the week. Natural gas rigs count remains unchanged
at 144, while total rigs count in the country rose by 3 to 698. Benchmark crude
oil futures for June delivery fell 67 cents or 0.6 percent to settle at $104.69
a barrel on the New York Mercantile Exchange. Brent crude for June delivery
lost $0.72 or 0.67 percent to settle at $106.60 (Provisional) a barrel on
London's Intercontinental Exchange.
Indian rupee ended considerably
stronger on Friday tracking a weak greenback overseas and fresh foreign fund
inflows. Sentiments were upbeat with PM Modi's statement that India is headed
for robust economic growth as India have the world's fastest-growing Startup
Ecosystem. Besides, with an aim to reduce imports of the country, the commerce
ministry has made a case for encouraging domestic manufacturing of 102 items
like chemicals, electronic products and insulin injection as their share in the
country's total imports are high. On the global front, dollar edged down from
its recent 20-year high on Friday but was still on track for its best month
since 2015, having been boosted by a combination of expectations for U.S. rate
hikes and growth concerns in China and Europe. Finally, the rupee ended at
76.50 (Provisional), stronger by 11 paise from its previous close of 76.61 on
Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 13027.23 crore against gross
selling of Rs 11137.34 crore, while in the debt segment, the gross purchase was
of Rs 207.33 crore against gross selling of Rs 1395.96 crore. Besides, in the hybrid
segment, the gross buying was of Rs 24.57 crore against gross selling of Rs 22.78
crore.
The US markets ended sharply
lower on Friday due to growth concerns, weak earnings and rising inflation.
Asian markets are trading in red on Monday amid thin trade, as most markets in
the region were shut for Labour Day, with data released over the weekend
showing Chinese factory activity contracted in April. Indian markets ended on a
weak note on Friday as a sell-off in the final hour wiped off their gains and
pushed the markets down into the red. Today, the markets are likely to start
holiday shortened week in deeply red tracking global sell-off. Traders will be
concerned as the government data showed that the production of eight
infrastructure sectors slowed down to 4.3 per cent in March against 12.6 per
cent in the year-ago period. There will be some cautiousness as the Reserve
Bank of India's (RBI) report on currency and finance for FY22 stated that it
will take nearly 15 years for the Indian economy to make up for the losses it
has incurred during the coronavirus pandemic. Besides, RBI data showed the
country's foreign exchange reserves decreased by $3.271 billion to $600.423
billion in the week ended April 22. However, some respite may come later in the
day as the Finance Ministry stated that the monthly collection under the Goods
and Services Tax (GST) has peaked to an all-time high of Rs 1.68 lakh crore in
April 2022. The gross GST collection has crossed the Rs 1.5 lakh crore-mark for
the first time in April 2022 and Rs 1 lakh crore-mark for the tenth month in a
row. Some support may come as Department for the Promotion of Industry and
Internal Trade (DPIIT) secretary Anurag Jain said foreign direct investment
(equity) inflows into manufacturing surged 78% until February last fiscal to
$20 billion, far exceeding the pace of rise in overall FDI, despite the
pandemic blues. Meanwhile, according to a notification of the commerce
ministry, the government has restricted the imports of certain waste and scrap
of precious metals. There will be some buzz in the pharma industry stocks as
the commerce ministry said pharma exports have touched Rs 1,83,422 crore in
2021-22 against Rs 90,415 crore in 2013-14. It added the exports in 2021-22
sustained a positive growth despite the global trade disruptions and drop in
demand for COVID related medicines. Coal industry stocks will be in focus as
coal ministry said public sector miner Coal India has reported an increase of
27.2 per cent in its output in April 2022 as compared to the year-ago period.
There will be some reaction in edible oil industry stocks as the government
approved the import of around 0.55 million tone (mt) of genetically-modified
(GM) soymeal, a key ingredient in poultry feed. Auto stocks will be in
limelight reacting to their sales numbers. There will be lots of earnings
reaction to keep the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,102.55
|
16,977.99
|
17,302.39
|
BSE
Sensex
|
57,060.87
|
56,650.28
|
57,723.46
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Axis Bank
|
344.01
|
730.00
|
714.39
|
756.24
|
NTPC
|
289.41
|
156.55
|
154.50
|
159.80
|
Tata Motors
|
219.91
|
436.95
|
432.71
|
444.46
|
Coal India
|
216.54
|
182.85
|
178.84
|
189.94
|
ITC
|
204.19
|
259.50
|
257.66
|
262.16
|
Axis Bank has reported 49.78% rise in its consolidated net profit at Rs 4,434.00 crore for Q4FY22 as compared to Rs 2,960.40 crore for Q4FY21.
Tata Motors' wholly-owned EV subsidiary -- Tata Passenger Electric Mobility has made a smashing debut with the global unveil of the AVINYA Concept.
ICICI Bank has launched India's first comprehensive digital ecosystem for all Micro, Small and Medium Enterprises in the country, including customers of other banks.
Reliance Industries has inked a pact with EHV to open Indian Accent restaurant in Mumbai.