Bulls made a fantastic comeback
on Dalal Street as Indian benchmark indices erased previous day losses and
ended nearly three percent higher on Friday amid strength in global markets.
Markets made an optimistic start and traded with traction throughout the day,
as sentiments got a boost with Finance Minister Nirmala Sitharaman's statement
that India's economic growth is likely to be robust at 8.9 percent in the
current financial year, reflecting the country's strong resilience and speedy
recovery. Sitharaman also expressed confidence that India will continue to
achieve a high growth rate in the next financial year as well. Adding more
optimism, RBI data showed that bank credit grew by 10.82 per cent to Rs 120.46 lakh
crore and deposits by 9.71 per cent to Rs 166.95 lakh crore in the fortnight
ended May 6, 2022. Key indices extended buying in last leg of trade as traders
remained optimism with Lok Sabha Speaker Om Birla's statement that India is on
its way to become a hub of export as there has been an extensive progress in
various sectors including defence under the leadership of Prime Minister
Narendra Modi in the country. He noted that there was need for skilled
workforce in view of the emerging technology and their growing use in every
sector. Meanwhile, NITI Aayog CEO Amitabh Kant has said it is the private
sector's job to create wealth and the government should focus on laying down
public policy framework. Finally, the BSE Sensex rose 1534.16 points or 2.91%
to 54,326.39 and the CNX Nifty was up by 456.75 points or 2.89% to 16,266.15.
The US markets settled mostly
higher on Friday with modest gains. Indices failed to hold early gains and
trimmed some of their gains. Though, Nasdaq slipped below neutral line. The
extended volatility on Wall Street came as traders continued to debate when the
markets will reach a bottom following recent weakness. Light trading activity
may also have contributed to the volatility, with a lack of major U.S. economic
data keeping some traders on the sidelines following the release of a slew of
data earlier in the week. Traders may also have been looking ahead to next
week's reports on new home sales, durable goods orders, and personal income and
spending as well as the minutes of the latest Federal Reserve meeting. On the
sectoral front, computer hardware stocks climbed well off their worst levels
but still ended the day notably lower, resulting in a 2.9 percent slump by the
NYSE Arca Computer Hardware Index. Significant weakness also remained visible
among airline stocks, as reflected by the 1.4 percent drop by the NYSE Arca
Airline Index. On the other hand, pharmaceutical stocks moved sharply higher on
the day, driving the NYSE Arca Pharmaceutical Index up by 2 percent. Healthcare
stocks also turned in a strong performance, with the Dow Jones U.S. Health Care
Index climbing by 1.2 percent.
Crude oil futures ended higher on
Friday amid by the proposed ban on Russian oil by the EU and the relaxation of
Covid lockdowns in China. Strong consumption and stockpiles data from the U.S.
Energy Information Administration also added to gains in oil prices, while
worries about a global economic slowdown capped oil's upside. The European
Union expects to clinch a deal with member states to effect a ban of Russian
crude imports. Benchmark crude oil futures for June delivery rose $0.39 or
about 0.4% percent to settle at $110.28 a barrel on the New York Mercantile
Exchange. Brent crude for July delivery surged $0.58 or 0.51 percent to settle
at $112.62 a barrel on London's Intercontinental Exchange.
Declining for the third straight
session, Indian rupee depreciated against dollar, on account of sustained
dollar demand from importers and banks. Traders were worried despite Finance
Minister Nirmala Sitharaman's statement that India's economic growth is likely
to be robust at 8.9 percent in the current financial year, reflecting the
country's strong resilience and speedy recovery. Sitharaman also expressed
confidence that India will continue to achieve a high growth rate in the next
financial year as well. On the global front, dollar was headed for its worst week
since early February versus major peers on Friday, as some of the heat faded
from the currency's breakneck 10% surge. Finally, the rupee ended at 77.63
(Provisional), weaker by 7 paise from its previous close of 77.56 on Thursday.
The currency touched a high and low of 77.63 and 77.49 respectively.
The FIIs as per Friday's data
were net sellers in equity, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 6509.27 crore against gross selling of Rs
10352.10 crore, while in the debt segment, the gross purchase was of Rs 533.41
crore with gross sales of Rs 365.61 crore. Besides, in the hybrid segment, the
gross buying was of Rs 0.53 crore against gross selling of Rs 3.61 crore.
The US markets ended mostly in
green on Friday after a volatile session that saw Tesla slump and other growth
stocks also lose ground. Asian markets are trading mixed on Monday as
persistent worries about inflation and rising interest rates dog the global
economic outlook. Indian markets rose sharply on Friday amid gains across
sectors following two days of losses tracking mixed moves across global
markets. Today, the markets are likely to make cautious start amid mixed global
cues. Market participants will be concerned with report that the outflow of
funds from domestic markets has continued as Foreign Portfolio Investors (FPI)
remain net sellers. So far in the month of May, FPIs have pulled out Rs 37,216
crore as headwinds such as tighter monetary policy and rising inflation force
investors towards safer havens. There will be some cautiousness as RBI data
showed the country's foreign exchange reserves declined by $2.676 billion to
stand at $593.279 billion in the week ended May 13. In the previous week, the
reserves had declined by $1.774 billion to $595.954 billion. However, traders
may take encouragement with the commerce and industry ministry's statement that
total foreign direct investment into India rose 2 per cent to the highest ever $83.57
billion in 2021-22 on account of various measures like policy reforms and ease
of doing business taken by the government. Some support may come with a private
report that India Inc seems to be optimistic about opening of new vacancies
amid steady hiring trends during the current financial year as the country's
economy is on a growth trajectory. Meanwhile, the Indian government is
considering spending an additional 2 trillion rupees ($26 billion) in the
2022/23 fiscal year to cushion consumers from rising prices and fight
multi-year high inflation. There will be some buzz in the fertilizer industry
stocks as to insulate farmers from the sharp increases in the prices, the
Centre announced a doubling of fertiliser subsidy to Rs 2.15 trillion from the
budgeted level for FY23. Metals stocks were in focus as the government has
waived customs duty on the import of some raw materials, including coking coal
and ferronickel, used by the steel industry, a move which will lower the cost
for the domestic industry and reduce the prices. There will be some reaction in
tea stocks as Saurav Pahari, chairman and deputy chairman, Tea Board said the
plan is to achieve exports of 240 million kg in 2022-2023 and we are targeting
300 million kg by 2025.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,266.15
|
16,085.65
|
16,364.85
|
BSE
Sensex
|
54,326.39
|
53,687.65
|
54,680.79
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
323.70
|
280.05
|
277.25
|
282.60
|
Tata Motors
|
235.04
|
418.00
|
411.54
|
422.94
|
NTPC
|
178.41
|
149.35
|
147.69
|
150.99
|
State Bank of India
|
135.96
|
462.50
|
456.44
|
466.29
|
ICICI Bank
|
116.95
|
710.00
|
698.50
|
716.70
|
Dr. Reddy's Laboratories is planning to go to a regulator for its single-dose Sputnik Light jab as a booster dose for approvals by June-end or early July.
NTPC has started commercial operation of second part capacity of 35 MW out of 92 MW Kayamkulam Floating Solar PV Project at Kayamkulam, Kerala.
HDFC Life Insurance Company has set an ambitious target of more than doubling its embedded value to Rs 60,000 crore in the next five years, buoyed by a similar feat achieved during the past five years.
Bajaj Finserv's subsidiary company -- Bajaj Allianz Life Insurance has declared a bonus of Rs 1,070 crore for its policyholders in the fiscal ended March 2022.