Indian equity benchmarks traded with traction throughout
the session and gained more than a percent on Monday boosted by heavy buying in
Auto, Realty and Banking stocks amid a rally in global stock markets. Domestic
bourses started the week on a buoyant note as traders took some encouragement
with Commerce & Industry Minister Piyush Goyal's statement that India-US
partnership is at a defining stage and the two countries will continue to work
towards diversifying and deepening trade and investment ties for mutual growth
and prosperity. He said that the bilateral trade between India and US has been
the highest in the couple of years and is aimed to increase multifold in the
coming years. Some support also came as data available with the depositories
showed Foreign portfolio investors (FPIs) continue to be buyers of Indian
equities in May and invested Rs 10,850 crore in the last four trading sessions
due to the country's stable macroeconomic environment, robust GST collection
and better-than-expected corporate quarterly earnings. This came following a
net infusion of Rs 11,630 crore in equities in April and Rs 7,936 crore in
March. Markets extended gains in second half of trading session to settle near
day's high points, taking support from a private report that India will likely
grow at a moderate pace between 6 per cent and 6.5 per cent in FY2023-24 while
the global economy continues to struggle. It further noted that growth in the
next year will likely pick up as investment kickstarts the virtuous circle of
job creation, income, productivity, demand, and exports supported by favourable
demographics in the medium term. Some solace came as the Reserve Bank of India
said India's foreign exchange reserves jumped $4.532 billion to $588.78 billion
for the week ended April 28. The overall reserves had dropped $2.164 billion to
$584.248 billion in the previous reporting week. Finally, the BSE Sensex rose
709.96 points or 1.16% to 61,764.25 and the CNX Nifty was up by 195.40 points
or 1.08% to 18,264.40.
The US markets struggled for direction and ended mostly
in green on Monday as traders seemed reluctant to make significant moves ahead
to the release of key inflation data later in the week. The reports on consumer
and producer price inflation, which are due to be released on Wednesday and
Thursday, respectively, could have a significant impact on the outlook for
interest rates. Ahead of the data, CME Group's FedWatch Tool is currently
indicating an 88.0 percent chance the Federal Reserve will leave interest rates
unchanged at its next meeting in June. Fed Chair Jerome Powell said following
last week's rate hike that the central bank would take a data-dependent approach
to future monetary policy decisions. On the economic data front, the Commerce
Department released a report showing U.S. wholesale inventories were
unexpectedly unchanged in the month of March. The report said wholesale
inventories were virtually unchanged in March, while revised data showed
inventories were also unchanged in February. Street had expected wholesale
inventories to inch up by 0.1 percent, matching the uptick originally reported
for the previous month. On the sectoral front, most of the major sectors showed
only modest moves on the day, contributing to the lackluster performance by the
broader markets. Telecom stocks showed a notable move to the downside, however,
with the NYSE Arca North American Telecom Index falling by 1.1 percent to its lowest
closing level in over a month. Weakness was also visible among tobacco stocks,
as reflected by the 1.1 percent drop by the NYSE Arca Tobacco Index.
Crude oil futures ended higher on Monday as outlook for
the energy demand remains optimistic due to last week's fairly encouraging
non-farm payrolls data. Data from the Labor Department on Friday showed the
U.S. economy added 253,000 jobs in April compared with 165,000 jobs in March.
Economists had expected an addition of 180,000 jobs in April. The unemployment
rate in the U.S. dropped to 3.4% from 3.5%. Economists had expected the rate to
rise to 3.6%. China is likely to release the trade data on May 09. This will
give an insight into the commodity imports by China during April. Benchmark
crude oil futures for June delivery rose $1.82 or about 2.6 percent to settle
at $73.16 a barrel on the New York Mercantile Exchange. Brent crude for July
delivery added $1.71 or about 2.3 percent to settle at $77.01 a barrel on
London's Intercontinental Exchange.
Indian rupee ended lower against dollar on Monday despite
firm trade in domestic markets. Traders ignored Reserve Bank of India's
statement that India's foreign exchange reserves jumped $4.532 billion to
$588.78 billion for the week ended April 28. The overall reserves had dropped $2.164
billion to $584.248 billion in the previous reporting week. Besides, the
depositories showed foreign portfolio investors (FPIs) continue to be buyers of
Indian equities in May and invested Rs 10,850 crore in the last four trading
sessions due to the country's stable macroeconomic environment, robust GST
collection and better-than-expected corporate quarterly earnings. This came
following a net infusion of Rs 11,630 crore in equities in April and Rs 7,936
crore in March. On the global front, the ringgit trimmed last week's gains to
end marginally lower against the US dollar on Monday on a lack of catalysts
amid a slightly firmer greenback. Finally, the rupee ended at 81.80
(Provisional), weaker by 2 paise from its previous close of 81.78 on Thursday.
The FIIs as per Monday's data were net buyers in both
equity and debt segment. In equity segment, the gross buying was of Rs 16826.30
crore against gross selling of Rs 12973.69 crore, while in the debt segment,
the gross purchase was of Rs 995.89 crore against gross selling of Rs 224.34
crore. Besides, in the hybrid segment, the gross buying was of Rs 32.22 crore
against gross selling of Rs 180.88 crore.
The US markets ended mostly in green on Monday as
investors readied for key inflation reports due later in the week. Asian
markets are trading mostly in red on Tuesday ahead of China's April trade data
release as well as US inflation reports later this week. Indian markets ended
higher on Monday as investors indulged in strong buying at several counters
across various sectors. Today, markets are likely to get cautious start amid
mixed global cues and a sharp rebound in crude oil prices. However, traders may
take some encouragement as Fitch Ratings affirmed India's sovereign rating with
a stable outlook saying the country has a robust growth outlook and resilient
external finances. Fitch Ratings has affirmed India's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at BBB- with a Stable Outlook, and
added that strong growth potential is a key supporting factor for the sovereign
rating. Foreign fund inflows likely to aid sentiments. Foreign institutional
investors (FII) bought shares worth Rs 2,123.76 crore on May 8, provisional
data from the National Stock Exchange showed. Some support will come as
Economic Affairs Secretary Ajay Seth said Indian financial system is well
protected and regulated despite the daunting global financial situation. Seth
said The Indian financial sector is well protected, well regulated but at the
same time, we have to be cautious and be on our toes as soon as early warning
indicators are there. Besides, central bank data showed that the Reserve Bank's gold reserves increased by
34.22 tonne year-on-year to reach 794.64 tonne at March-end 2023. The Reserve Bank held 760.42 metric tonnes of gold
(including gold deposits of 11.08 metric tonnes) at the March-end of 2022.
Traders may take note of report that traders' body CAIT made a case for
lowering the GST rate on beverages from 28 per cent, which comes to 40 per cent
after inclusion of cess, arguing that it blocks the working capital of small
retailers. Investors await more of financial results from India Inc for
domestic cues, with broader market names like Lupin, SRF, Apollo Tyres,
Raymond, Godrej Agrovet due to post its earnings later in the day. The Street
will also track Mankind Pharma's market debut on Tuesday. The stock can list up
to 10 per cent higher over the issue price of Rs 1,080, as per ipowatch.com. in
the primary market, the Rs 3,200 crore IPO of Nexus Select Trust Real Estate
Investment Trust (REIT) will open today and close on Thursday. The price band
for the issue is fixed at Rs 95-100 per share.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
18,264.40
|
18,147.49
|
18,334.14
|
BSE Sensex
|
61,764.25
|
61,335.49
|
62,023.59
|
Nifty
Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
235.15
|
500.55
|
485.00
|
509.20
|
Tata Steel
|
231.30
|
109.75
|
108.71
|
110.31
|
ICICI Bank
|
186.24
|
937.85
|
929.34
|
944.04
|
HDFC Bank
|
186.22
|
1646.75
|
1634.39
|
1654.74
|
State Bank of India
|
129.91
|
584.60
|
578.76
|
589.01
|
UPL has reported 37.75% fall in its consolidated net profit at Rs 1080 crore for Q4FY23 as compared to Rs 1735 crore for the same quarter in the previous year.
Bharti Airtel is planning to offer content from ALTT and FanCode to its subscribers.
Coal India has reported fall of 17.68% in its consolidated net profit at Rs 5527.62 crore for Q4FY23 as compared to Rs 6715.00 crore for the same quarter in the previous year.
Sun Pharmaceutical Industries is recalling pre-filled syringes of a drug, used to treat infertility in women, in the US market due to a manufacturing issue.