Indian equity benchmarks
fluctuated between gains and losses throughout the day and ended flat with
negative bias on the weekly expiry day, as traders restrained from taking any
long position ahead of macro-economic data i.e. Consumer Price Index (CPI) for
the month of April and Index of Industrial Production (IIP) scheduled to be
release on May 12, 2023. Benchmark indices traded with gains for most part of
the day, as traders took support with Industry body PHDCCI's statement that
enhanced competitiveness of the Indian economy will attract more investments
and create new employment opportunities for the growing young population in the
country. Further, Union MSME minister Narayan Rane has urged the global and
domestic industries to continue to invest in India, which is on its path to
become the third largest economy. He said immense business opportunities are
available in various sectors in India and promised full support to investors
looking to invest in the country. But at the end, key indices failed to hold
heads in green and settled with minor cuts as investors awaited more of
financial results from India Inc for domestic cues. Traders overlooked exchange
data showing that Foreign Institutional Investors (FIIs) were net buyers on
Wednesday as they bought equities worth Rs 1,833.13 crore. Meanwhile, the
government has extended the deadline to May 31 for Goods Transport Agencies to
exercise the option of paying GST on forward charge basis for current fiscal.
Under GST, Goods Transport Agencies have the option to collect and pay GST on
forward charge basis. If they do not opt to do so, the liability to pay the tax
gets transferred to the recipient of the service, under reverse charge
mechanism. Finally, the BSE Sensex fell 35.68 points or 0.06% to 61,904.52 and
the CNX Nifty was down by 18.10 points or 0.10% to 18,297.00.
The US markets trimmed some of
their initial losses and ended mostly lower on Thursday, while the tech-heavy
Nasdaq reached positive territory. The Dow closed lower for the fourth
consecutive session, with a steep drop by shares of Disney (DIS) weighing on
the blue chip index. Disney plunged by 8.7 percent to a four-month closing low
after the entertainment giant reported fiscal second quarter earnings and
revenue roughly in line with estimates but a decrease in streaming subscribers.
Renewed concerns about turmoil in the banking sector also weighed on Wall
Street amid a nosedive by shares of PacWest Bancorp (PACW). PacWest Bancorp
plummeted by 22.7 percent after the regional bank revealed in a SEC filing that
deposits slumped by 9.5 percent last week. Meanwhile, the Nasdaq may have
benefited from easing concerns about the outlook for interest rates following
the release of the Labor Department's report on producer price inflation in the
month of April. The Labor Department said its producer price index for final
demand inched up by 0.2 percent in April after falling by a revised 0.4 percent
in March. Street had expected producer prices to rise by 0.3 percent compared
to the 0.5 percent drop originally reported for the previous month. The report
also showed the annual rate of producer price growth slowed to 2.3 percent in
April from 2.7 percent in March. The pace of growth was expected to slow to 2.4
percent. A separate Labor Department report showed initial jobless claims
climbed to their highest level in well over a year in the week ended May 6th.
The report said initial jobless claims rose to 264,000, an increase of 22,000
from the previous week's unrevised level of 242,000.
Crude oil futures settled
considerably lower on Thursday amid uncertainty about the outlook for energy
demand following weak data from China. Traders overlooked a report from OPEC
that forecast an increase in Chinese oil demand. The OPEC report says China is
now expected to require 800,000 barrels per day, up from 760,000 barrels per
day seen last month. Benchmark crude oil futures for June delivery fell $1.69
or about 2.3 percent to settle at $70.87 a barrel on the New York Mercantile
Exchange. Brent crude for July delivery declined $1.44 or 0.88 percent to
settle at $74.97 a barrel on London's Intercontinental Exchange.
Rupee settled lower against
dollar on Thursday weighed by broad strength in the dollar index. Traders were
cautious ahead of macro-economic data i.e. Consumer Price Index (CPI) for the
month of April and Index of Industrial Production (IIP) scheduled to be release
on May 12, 2023. Traders ignored Industry body PHDCCI's statement that enhanced
competitiveness of the Indian economy will attract more investments and create
new employment opportunities for the growing young population in the country.
On the global front, sterling trimmed declines after the Bank of England raised
interest rates for the 12th consecutive time, while the safe-haven dollar rose
on Thursday as more evidence of weakness in China's post-COVID recovery clouded
the outlook for the global economy. Finally, the rupee ended at 82.09
(Provisional), weaker by 15 paise from its previous close of 81.94 on
Wednesday.
The FIIs as per Thursday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 8127.78 crore against gross selling of Rs 5832.22 crore, while
in the debt segment, the gross purchase was of Rs 916.51 crore against gross
selling of Rs 103.88 crore. Besides, in the hybrid segment, the gross buying
was of Rs 9.10 crore against gross selling of Rs 9.84 crore.
The US markets ended mostly in
red on Thursday amid report that US Treasury Secretary Janet Yellen, CEO of JP
Morgan warned about the debt limit and said the delay in increasing the debt
limit will spread fear in the market. Asian markets are trading moistly lower
on Friday following lackluster trade on wall street overnight. Indian markets
ended the choppy session with marginal cuts on Thursday as downbeat earnings
updates from prominent companies offset signs of slowing inflationary pressures
in the United States. Today, the domestic indices are likely to get negative
start amid weakness in global markets. Investors likely to be remain cautious
ahead of the April consumer inflation and March IIP data, slated to be released
later in the day. There are expectations that April retail inflation to have
cooled as rises in food and fuel prices moderated. Though, foreign fund inflows
likely to aid domestic sentiments. Foreign institutional investors (FII) bought
shares worth Rs 837.21 crore on May 11, provisional data from the National Stock
Exchange showed. Some support may come as CRISIL Rating stated that India's
vulnerability to global shocks is expected to reduce in FY24 as the Current
Account Deficit (CAD) improves amid challenging external financing conditions.
CAD is India's major short-term external liability, affecting the exchange rate
and investor sentiment. After peaking at 3.7 per cent of Gross Domestic Product
(GDP) in the second quarter of the previous fiscal (FY22), CAD shrank
significantly to 2.2 per cent in the third quarter of FT23. This decline was
driven by falling oil imports, boost from services exports, and rising
remittances. Traders may take note of report that Department for Promotion of
Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh has said that
the government is at a fairly advanced stage of finalising a well-coordinated
e-commerce policy and consumer protection rules, which will incorporate
provisions of Open Network for Digital Commerce (ONDC). Agriculture related
stocks will be in focus as the finance ministry exempted imports of crude soya
bean and sunflower oil from basic customs duty and agriculture infrastructure
and development cess till June 30, subject to certain conditions. Meanwhile,
investors await more of financial results from India Inc for domestic cues,
with Tata Motors and Cipla, among Nifty 50 constituents, due to post its
earnings later in the day. From the broader market, Colgate-Palmolive, HPCL,
IGL, Polycab will also announce their quarterly earnings today. Besides, Adani
Transmission, Adani Total Gas and Indus Towers will also be eyed as the three
stocks have been excluded from MSCI India Standard Index, as part of the May
review. Max healthcare, HAL and Sona BLW, may see positive impact on being
added to the index. All the changes will be effective May 31.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,297.00
|
18,248.36
|
18,367.66
|
BSE
Sensex
|
61,904.52
|
61,762.32
|
62,107.47
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ICICI Bank
|
200.27
|
939.65
|
933.34
|
946.49
|
Tata Steel
|
198.18
|
108.65
|
108.10
|
109.35
|
HDFC Bank
|
178.67
|
1655.00
|
1640.16
|
1678.91
|
State Bank of India
|
160.17
|
573.70
|
570.46
|
578.46
|
ITC
|
159.82
|
421.25
|
417.64
|
426.14
|
Tata Motors has launched an extension to its bestselling EV in the personal mobility segment, the new Nexon EV MAX, at an attractive starting price of NPR 46.49 lakh for 7.2 kW charging option in Nepal.
Coal India is eyeing to conclude the eleventh version of the national coal wage agreement (NCWA-XI), within a month, which would benefit its 2.38 lakh strong non-executive workers.
Asian Paints consolidated basis, the company has reported 43.97% rise in its net profit at Rs 1258.41 crore for fourth quarter ended March 31, 2023 as compared to Rs 874.05 crore for the same quarter in the previous year.
Adani Enterprises is planning to raise funds by way of issuance equity shares or any other eligible securities (Securities) through permissible modes.