Extending
gaining streak for third straight session, Indian equity benchmarks ended the
Friday's session above their crucial 49,200 (Sensex) and 14,800 (Nifty) levels.
Markets started the session on optimistic note on account of upbeat earning
from blue-chip companies. Traders took encouragement with Union Minister Nitin
Gadkari's statement that the Centre decided to increase production of
anti-viral drug Remdesivir and it will be provided to people at government's
price. Adding more optimism, secretary ministry of Earth Sciences, M Rajeevan
said India's southwest monsoon is expected to arrive over the Kerala coast on
June 1, its normal onset date. Though, the India Meteorological Department (IMD)
will officially announce the 2021 monsoon onset date on May 15. However,
traders pared some of their profit in afternoon deals after the International
Monetary Fund said the recent jump in COVID-19 cases in India posed downside
risks to the Fund's April forecast for 12.5% growth in India's economic output
in fiscal years 2021 and 2022. Meanwhile, India reported a record 414,433 new
infections and 3,920 deaths on Thursday, according to Worldometer. In the
second half of the trade, markets gained momentum and ended the session with a
gain of over half a percent as traders got boost with Finance Ministry
releasing the second monthly installment of revenue deficit grant of Rs 9,871
crore to 17 states. With the release of the second installment, a total amount
of Rs 19,742 crore has been released in the first two months of the current
financial year as Post Devolution Revenue Deficit Grant to the states. The
Centre provides the Post Devolution Revenue Deficit Grant to the states under
Article 275 of the Constitution. Market participants also got some support from
report that foreign portfolio investors (FPIs) bought shares worth Rs 1,222.58
crore, while domestic institutional investors (DIIs) were net sellers to the
tune of Rs 632.51 crore in the Indian equity market on 6 May, provisional data
showed. Traders shrugged off Fitch Solutions' statement that India is likely to
breach its fiscal deficit target in the financial year to March 2022 mainly due
to revenue shortfall. The government is targeting a deficit between revenue it
earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in
FY22 (April 2021 to March 2022). Finally, the BSE Sensex surged 256.71 points
or 0.52% to 49,206.47, while the CNX Nifty was up by 98.35 points or 0.67% to 14,823.15.
Extending
their previous session's gains, the US markets settled higher on Friday, with
the Dow Jones and the S&P 500 both finishing the session at new record
closing highs. Sentiments got boost following the release of a closely watched
Labor Department report showing much weaker than expected job growth in the
month of April. The Labor Department said non-farm payroll employment rose by
266,000 jobs in April after surging by a downwardly revised 770,000 jobs in
March. Street had expected employment to spike by 978,000 jobs compared to the
jump of 916,000 jobs originally reported for the previous month. The report
also showed the unemployment rate inched up to 6.1 percent in April from 6.0
percent in March, while market participants had expected the unemployment rate
to drop to 5.8 percent. Traders reacted positively to the report as the weaker
than expected data reinforced the view the Federal Reserve will leave
ultra-easy monetary policy in place for the foreseeable future. Meanwhile, oil
service stocks moved sharply higher over the course of the session. The rally
by oil service stocks came amid a modest increase by the price of crude oil.
Considerable strength was also visible among airlines stocks. Steel stocks also
showed a strong move to the upside on the day, driving the NYSE Arca Steel
Index up by 2.1 percent to its best closing level in almost ten years. Housing,
networking, computer hardware and gold stocks also saw notable strength,
reflecting broad based buying interest on Wall Street.
Crude oil futures ended higher on
Friday with marginal gains on account of lingering worries about the outlook
for energy demand amid a continued surge in coronavirus cases in Asia and the
possibility of another shutdown in some countries. Optimism about increased
demand for oil in the US and Europe supported oil prices. Still, data showing a
smaller than expected increase in US non-farm payroll employment in the month
of April hurt a bit. According to the report released by Baker Hughes, the US
oil rig count increased by 2 to 344 this week. The gas rig count stood at 103
versus 96 last week, and the total rig count rose by 8 to 448 in the week.
Crude oil futures for June rose $0.19 or 0.3 percent to settle at $64.90 barrel
on the New York Mercantile Exchange. July Brent crude up $0.08 or 0.12 percent
to settle at $68.17 a barrel on London's Intercontinental Exchange.
Continuing previous session
gains, Indian rupee ended higher against dollar on Friday, owing to dollar sale
by exporters and banks. Strong gains in domestic equity markets also provided
support to rupee. Sentiments were upbeat as Finance Ministry released the
second monthly installment of revenue deficit grant of Rs 9,871 crore to 17
states. With the release of the second installment, a total amount of Rs 19,742
crore has been released in the first two months of the current financial year
as Post Devolution Revenue Deficit Grant to the states. Adding more optimism,
Union Ministry of Finance in its monthly economic review for April stated that
the second wave of the Covid-19 pandemic poses risks to economic activity but
the impact will be muted when compared to the first wave. On the global front,
sterling was a touch higher versus the dollar and steadied against the euro on
Friday, but was on track for weekly gains against both as traders watched for
British election results. Finally, the rupee ended 73.51, stronger by 26 paise
from its previous close of 73.78 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 6363.57 crore against gross selling of Rs 5277.14 crore, while
in the debt segment, the gross purchase was of Rs 513.32 crore with gross sales
of Rs 228.42 crore. Besides, in the hybrid segment, the gross buying was of Rs
66.52 crore against gross selling of Rs 68.58 crore.
The US markets ended higher on
Friday after US jobs data eased concerns over prospects for rising rates. Asian
markets are trading in green on Monday amid speculation that interest rates
will remain low for an extended period due to the receding risk of a rapid
acceleration in inflation. Indian markets ended higher on Friday, following a
rise in global peers, mainly led by financials and metal stocks as commodity
prices rose. Today, the markets are likely to make gap-up opening of
holiday-shortened week tracking firm trend in global peers. A fall in the daily
Covid-19 cases may help investors sentiment. With 366,499 fresh infections,
India recorded a significant drop in the number of daily Covid-19 cases. Its
cumulative caseload now stands at 22,662,410, while 246,146 people have died
from the deadly virus. Sentiments will get boost as the Union Health Ministry
said more than 72 lakh COVID-19 vaccine doses are still available with states
and union territories, while over 46 lakh doses will be received by them within
the next three days. Traders will be taking encouragement as data of the
commerce ministry showed continuing a positive growth, India's exports grew by
80 per cent to $7.04 billion during the first week of this month. Exports
during May 1-7 last year stood at $3.91 billion and $6.48 billion in the same
week of May 2019. Some support will come as India and the European Union (EU)
announced their decision to resume negotiations for a balanced and
comprehensive trade agreement after a gap of eight years and unveiled an
ambitious connectivity partnership. Traders may take note of S&P Global
Ratings' statement that India's credit rating would be retained at the current
level for the next two years, and the country will see a slightly faster pace
of growth in the next couple of years that will support its sovereign rating.
Besides, the finance ministry has released Rs 8,923 crore to 25 states for
providing grants to the rural local bodies for various prevention and mitigation
measures needed to combat the COVID-19 pandemic. However, there may be some
cautiousness as foreign investors have pulled out Rs 5,936 crore from the
Indian equities in the first week of May amid worries over the intense second
wave of coronavirus infection and its fallout on the economy. There will be
some buzz in pharma stocks with a private report stating that the domestic
pharmaceuticals market has seen a rebound in April, with sales growing 51.5 per
cent over last year, thanks to the low base of April 2020 and a pick-up in
demand for Covid-19 drugs. Banking stocks will be in focus as the Reserve Bank
of India data showed that commercial bank credit in India contracted 0.8 per
cent (Rs 89,087 crore) in April, reflecting a lean period at the start of the
new financial year (FY22) and the adverse effect of the second wave of
Covid-19. The outstanding credit as of April 23, 2021, was Rs 108.60 trillion.
There will be some important result announcements to keep the markets in
action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,823.15
|
14,771.41
|
14,868.96
|
BSE
Sensex
|
49,206.47
|
49,022.68
|
49,403.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
540.75
|
1182.35
|
1,144.30
|
1,206.20
|
Hindalco Industries
|
463.43
|
401.10
|
389.25
|
408.95
|
Tata Motors
|
415.91
|
302.75
|
300.19
|
305.64
|
State Bank of India
|
383.57
|
358.25
|
353.50
|
362.50
|
Oil & Natural Gas Corporation
|
280.16
|
111.45
|
109.95
|
112.65
|
TCS has launched TCS Enterprise Navigator, an integrated consulting-led framework that supports C-suite and executive leaders in realizing perpetual value from their transformation initiatives and driving business growth.
NTPC's arm -- NTPC Renewable Energy has entered into a power purchase agreement with Gujarat Urja Vikas Nigam to sell electricity from its 150 MW solar project.
Bajaj Finserv's EMI Store is offering customers a chance to shop for Haier AC on No Cost EMIs starting Rs 1,550.
JSW Steel has signed a MoU to conduct a Feasibility Study with JFE Steel Corporation to establish a Grain Oriented Electrical Steel Sheet Manufacturing and Sales Joint-Venture Company in India.