Snapping four
day gaining streak, Indian equity benchmarks ended the horrendous day of trade
with a cut of around two percentage points. Markets started the day on
pessimistic note amid persistent rise in Covid cases and hiccups in vaccination
drive. Breaking all records, India reported a massive surge of 386,888 cases,
Worldometer showed. Besides, Mumbai for instance announced halting vaccination
programme for three days due to the non-availability of vaccine stock. Adding
more pessimism, the Centre for Monitoring Indian Economy stated that the
unemployment rate in India has shot up in the first two weeks of April and the
monthly unemployment rate is likely to be close to 8% compared to 6.5% in March
with lower absorption of labour in the market. Traders also got cautious amid a
private report stating that there has been an over 28 per cent increase in
suspected fraudulent digital transaction attempts against businesses
originating from India in the pandemic year. Selling got intensified in second
half of trade as traders opted to weekly profit in risky assets ahead of
weekend. The street took a note of report that markets regulator Sebi said
mutual funds will have to make a disclosure about scheme risk-o-meter,
performance and portfolio details to investors only for the particular plans in
which they have invested. Traders failed to draw any sense of relief on report
that Ministry of Finance, Government of India has decided to provide an additional
amount of upto Rs 15,000 crore to States as interest free 50 year loan for
spending on capital projects. The Department of Expenditure has issued fresh
guidelines in this regard on the Scheme of Financial Assistance to States for
Capital Expenditure for the financial year 2021-22. Finally, the BSE Sensex
fell 983.58 points or 1.98% to 48,782.36, while the CNX Nifty was down by
263.80 points or 1.77% to 14,631.10.
The US markets
ended in red on Friday amid profit taking after the upward move seen on
Thursday lifted the S&P 500 to a new record closing high. A steep drop by
shares of Twitter also weighed on the markets, with the social media giant
plunging by 3.7 percent. The nosedive by Twitter came after the company
reported better than expected first quarter results but provided disappointing
guidance. Energy giants Chevron and Exxon Mobil also showed notable moves to
the downside after reporting their quarterly results. Shares of Amazon ended
the modestly lower even though the online retail giant reported first quarter
earnings that far exceeded street estimates. Meanwhile, traders largely
shrugged off another batch of upbeat US economic data, including a report from
the Commerce Department showing personal income skyrocketed in March amid the
distribution of another round of stimulus checks. The Commerce Department said
personal income soared by 21.1 percent in March after plunging by a revised 7.0
percent in February. Street had expected personal income to spike by 20.3
percent compared to the 7.1 percent slump originally reported for the previous
month. The report also showed personal spending jumped by 4.2 percent in March
following a 1.0 percent decrease in February. Personal spending was expected to
surge up by 4.1 percent. A separate report from the University of Michigan
showed consumer sentiment in the US improved by more than initially estimated
in the month of April. The report said the consumer sentiment index for April
was upwardly revised to 88.3 from a preliminary reading of 86.5.
Crude oil futures settled sharply
lower on Friday, with cut of over 2%, as worries about energy demand resurfaced
amid a continued surge in coronavirus cases in Asia. India reported another
sharp spike in coronavirus cases, with more than 3.86 lakh people getting
infected on Friday. Brazil and Japan have also reported spikes in infections.
Weak factory activity data from China and a contraction in Euro Zone economic
growth also weighed on crude oil prices. Meanwhile, according to a report from
Baker Hughes, oil and natural gas rigs count rose by two to 440 in the week,
the highest since April 2020. Crude oil futures for June slipped $1.43 or 2.2
percent to settle at $63.58 barrel on the New York Mercantile Exchange. June
Brent crude declined $1.33 or 1.95 percent to settle at $66.68 a barrel on
London's Intercontinental Exchange.
Indian rupee ended marginally
weaker against the US dollar on Friday, on increased demand for the greenback
from importers and banks. Traders were worried as Centre for Monitoring Indian
Economy stated that the unemployment rate in India has shot up in the first two
weeks of April and the monthly unemployment rate is likely to be close to 8%
compared to 6.5% in March with lower absorption of labour in the market.
However, lower side remained capped, in order to pump up liquidity, the Reserve
Bank of India (RBI) is going to conduct a one-day Open Market Operations (OMO)
on May 6 to simultaneous purchase and sell government securities. On the global
front, dollar skidded towards a fourth straight weekly decline and its longest
weekly streak of losses since last July against a basket of major peers on
Friday, as the Federal Reserve stuck to its message of ultra-low interest rates
for longer. Finally, the rupee ended 74.09, weaker by 2 paise from its previous
close of 74.07 on Thursday.
The FIIs as per Friday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 6767.84 crore against gross selling of Rs
5325.63 crore, while in the debt segment, the gross purchase was of Rs 141.14
crore with gross sales of Rs 975.87 crore. Besides, in the hybrid segment, the
gross buying was of Rs 4.36 crore against gross selling of Rs 15.59 crore.
The US markets ended lower on
Friday with Amazon, Apple, Alphabet and other tech-related companies weighing
on the S&P 500 and Nasdaq. Asian markets are trading mostly in red on
Monday as holidays in China and Japan crimped volumes and investors awaited a
raft of data this week which should show the US leading a global economic
recovery. Indian markets ended sharply lower dragged by heavy selling in
banking and financial stocks. Today, the markets are likely to make negative
start of new week tracking muted cues from global markets. Markets may stay
volatile after assembly election result of four states and one union territory.
Trends in the election results indicate TMC retained power with two-thirds
majority in West Bengal, Left while the BJP have crossed the majority mark in
Assam and Left Democratic Front in Kerala. Investors will also track Markit
Manufacturing PMI data scheduled to be out later in the day. There will be some
cautiousness as snapping their six-month buying spree, foreign investors turned
net sellers in April and pulled out Rs 9,659 crore from Indian equities,
spooked by the intense second wave of coronavirus and its fallout on the
economy. However, some respite may come later in the day with the data released
by the commerce and industry ministry showing that the growth of India's eight
key infrastructure segments reached a 32-month high of 6.8 per cent in March
compared to a year earlier, mainly due to a low base. Some support will come as
the goods and services tax (GST) collections touched a record high at Rs 1.41
trillion in April, surpassing the Rs one trillion mark for the seventh straight
month in a row during 2020-21. Also, the commerce ministry's preliminary data
showed that India's exports in April jumped nearly three-folds to $30.21
billion from $10.17 billion in the same month last year. Traders may take note
of report that the government and the Reserve Bank of India (RBI) are
considering relief measures for businesses as India continues to battle the
deadly second wave of the Covid-19 pandemic. Meanwhile, India reported a
decline in the number of fresh Covid-19 cases. With 370,059 infections in the
last 24 hours, the cumulative caseload stands at 19,919,715, Worldometer
showed. There will be some buzz in power stocks with power ministry data
showing that power consumption in the country grew 41 per cent in April to
119.27 billion units (BU) in the same month last year, showing robust recovery
in industrial and commercial demand of electricity. Banking stocks will be in
focus as the Reserve Bank has decided to review and strengthen the Risk Based
Supervision (RBS) of the banking sector with a view to enable financial sector
players to address the emerging challenges. There will be some reaction in coal
industry stocks with a private report that India's coal import is expected to
be subdued in coming months on account of various factors like prevailing Covid
situation, high coal stock in the system and higher international prices.
Shares of auto companies will be in focus as investors will react to the auto
sales figures for the month of April.
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
|
14,631.10
|
14,536.71
|
14,790.46
|
BSE
Sensex
|
48,782.36
|
48,463.82
|
49,335.16
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil
& Natural Gas Corporation
|
813.58
|
108.15
|
103.40
|
112.80
|
State
Bank of India
|
538.32
|
353.50
|
348.46
|
360.51
|
JSW
Steel
|
364.49
|
717.85
|
706.20
|
734.75
|
Tata
Motors
|
361.21
|
293.85
|
290.50
|
299.25
|
Indian
Oil Corporation
|
298.15
|
90.85
|
88.20
|
93.30
|
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ICICI Bank has launched digital and contactless banking platform for merchants.
Maruti Suzuki India has introduced new version of RPAS system in all variants of Super Carry.