Indian equity benchmarks ended
flat with positive bias in the volatile session on Tuesday amid weak trend in
global markets. After initial up move, key gauges remained in a narrow range as
traders took encouragement with a Reserve Bank of India (RBI) article stating
that India's growth in the April-June quarter is likely to be driven by private
consumption, supported by reviving rural demand, and renewed buoyancy in
manufacturing. Some support also came as the federal finance ministry in its
monthly economic review said that domestic demand will aid India's economy and
help lay the foundation for the capex cycle, despite global headwinds that pose
a downside risk to growth. Foreign fund inflows also aided to the markets.
Foreign institutional investors (FIIs) bought shares worth Rs 922.89 crore on
May 22, provisional data from the National Stock Exchange showed. However,
profit booking by investors towards the end capped gains. Traders turned
anxious with the finance ministry in its report stating that there are downside
risks to growth and upside risks to inflation, partly channelled through the
external sector and partially originating from weather uncertainties. It said
consumption has shown steady and broad-based growth, while investment in
capacity creation and real estate is finding traction. Traders failed to get
support with Reserve Bank of India (RBI) governor Shaktikanta Das' statement
that the central bank's announcement of withdrawal of Rs 2,000 notes will have
very marginal impact on the economy because it constitutes only 10.8 per cent
of the currency in circulation. Finally, the BSE Sensex rose 18.11 points or
0.03% to 61,981.79 and the CNX Nifty was up by 33.60 points or 0.18% to
18,348.00.
The US markets ended lower on
Tuesday, with Nasdaq settling over one percent. A lack of significant progress
in U.S. debt ceiling negotiations weighed on sentiment. U.S. President Joe
Biden and House Speaker Kevin McCarthy said they held productive talks on
Monday but there was no agreement on how to raise the government's $31.4
trillion debt ceiling. Traders largely shrugged off economic reports that new
home sales in the U.S. unexpectedly spiked to their highest level in a year in the
month of April, the Commerce Department revealed in a report released. The
report said new home sales jumped by 4.1 percent to an annual rate of 683,000
in April after surging by 4.0 percent to a revised rate of 656,000 in March.
Street had expected new home sales to decrease to an annual rate of 670,000
from the 683,000 originally reported for the previous month. The S&P Global
US Composite PMI rose to 54.5 in May 2023, up from 53.4 the month before, a
preliminary estimate showed. The latest reading signaled the fastest pace of
expansion in the country's private sector since April 2022. However, the
S&P Global Flash US Manufacturing PMI declined to 48.5 in May of 2023 from
50.2 in April, well below forecasts of 50, preliminary estimates showed. The
S&P Global US Services PMI increased to 55.1 in May 2023, up from 53.6 the
month before and well above market expectations of 52.6, a preliminary estimate
showed.
Crude oil futures ended higher,
extending previous session' gains, on warning from Saudi Arabia's energy
minister that oil prices may not continue to decline and some speculation that
OPEC and allies might consider another cut in production next month. Besides,
hopes about U.S. lawmakers agreeing on a debt ceiling deal soon, and data
showing an unexpected rise in U.S. private sector activity contributed as well
to the rise in oil prices. The S&P Global US Composite PMI rose to 54.5 in
May 2023, up from 53.4 the month before, a preliminary estimate showed. Benchmark
crude oil futures for June delivery gained $0.86 or about 1.2 percent to settle
at $72.91 a barrel on the New York Mercantile Exchange. Brent crude for July
delivery rose $0. 85 or 1.1 percent to settle at $76.84 a barrel on London's
Intercontinental Exchange.
Indian rupee ended higher against
the American currency on Tuesday. Traders got support with a Reserve Bank of
India's (RBI) article stating that India's growth in the April-June quarter is
likely to be driven by private consumption, supported by reviving rural demand,
and renewed buoyancy in manufacturing. Some support also came as the federal
finance ministry in its monthly economic review said that domestic demand will
aid India's economy and help lay the foundation for the capex cycle, despite
global headwinds that pose a downside risk to growth. On the global front, U.S.
dollar rose for a second day on Tuesday, briefly touching a six-month peak
against Japan's yen, on expectations that U.S. interest rates will remain
higher for longer, while ongoing debt ceiling negotiations kept investors on
edge. Among a slew of Federal Reserve heavyweights who spoke on Monday, some
hinted that the central bank had further to go in tightening monetary policy. Finally,
the rupee ended at 82.82 (Provisional), marginally higher by 2 paise from its
previous close of 82.84 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 6960.16 crore against gross selling of Rs 5670.58 crore, while
in the debt segment, the gross purchase was of Rs 503.75 crore against gross
selling of Rs 236.93 crore. Besides, in the hybrid segment, the gross buying
was of Rs 4.85 crore against gross selling of Rs 20.35 crore.
The US markets ended lower on
Tuesday as debt-ceiling negotiations saw no progress. Asian markets are trading
in red on Wednesday tracking overnight losses on Wall Street. Indian markets
came off highs in fag-end of the session and ended flat with positive bias on
Tuesday. Today, domestic indices are likely to get pessimistic start following
subdued cues from the overseas market as representatives of President Joe Biden
and congressional Republicans ended another round of debt ceiling talks on
Tuesday with no signs of progress. Traders will be concerned with a private
report that foreign direct investment (FDI) inflows into the country fell 16%
to $71 billion (on a gross basis) during 2022-23 on the back of a weak global
economic situation, marking the first decline in a decade. There will be some
cautiousness as Moody's said India's GDP has crossed $3.5 trillion in 2022 and
will be the fastest-growing G-20 economy over the next few years, but reform
and policy barriers could hamper investment. In a research report, it said
bureaucracy could slow approval processes in obtaining licences and setting up
businesses, prolonging project gestation. However, foreign fund inflows likely
to aid domestic sentiments. Foreign institutional investors (FII) bought shares
worth net Rs 182.51 crore on May 23, according to the provisional data
available on the NSE. Banking stocks will be in focus with a private report
that a key metric of profitability for Indian banks, lending margins, is set to
get a boost as the nation's decision to withdraw its highest-value currency
note bolsters bank deposits. There will be some reaction in agriculture related
stocks as the Centre ruled out lifting the ban on wheat exports but said the
shipments of the foodgrain through diplomatic channels will be considered on a
case-to-case basis. India, the world's second-largest wheat producer, banned
wheat exports in May 2022 as part of measures to control rising domestic
prices. Meanwhile, Adani Group Shares are likely to remain in focus following a
report that US-based GQG Partners has hiked its exposure and willingness to
back any of the Adani group's new offerings. Besides, LIC, Adani Green, Nykaa,
Oil India, Hindalco, Phoenix Mills, Brigade Enterprises, NALCO, are some of the
prominent companies that will announce the March quarter results later in the
day.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,348.00
|
18,308.21
|
18,403.76
|
BSE
Sensex
|
61,981.79
|
61,849.07
|
62,179.86
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Adani
Ports and Special Economic Zone
|
394.98
|
735.00
|
714.79
|
770.44
|
Adani
Enterprises
|
284.33
|
2639.95
|
2440.15
|
2799.60
|
Tata
Steel
|
213.04
|
105.60
|
105.05
|
106.10
|
ICICI
Bank
|
165.80
|
951.00
|
944.39
|
958.24
|
State
Bank of India
|
161.21
|
580.30
|
576.84
|
583.74
|
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