Indian equity
markets gave up most of their gains in the fag-end but managed to end with marginal
gains on Tuesday backed by strong global cues. Markets made a positive start
and remained in range-bound throughout the session, as traders took some
support with Union Minister Piyush Goyal's statement that the Modi government
has provided a corruption free regime in the last 10 years and the country in
the next few years will become the world's third largest economy. Sentiments
remained positive with a survey showing that India's business activity expanded
at its fastest pace in nearly 14 years in the month of April thanks to robust
demand. It also showed easing input inflation and positive jobs growth. That
suggests India is well placed to remain the fastest growing major economy this
year after posting strong expansion over the past few quarters. HSBC's flash
India Composite purchasing managers' Index INPMCF=ECI, compiled by S&P
Global, rose to 62.2 this month from March's final reading of 61.8. The reading
has been consistently above the 50-mark separating expansion from contraction
since August 2021. Sentiments remained positive in late afternoon deals, taking
support from RBI Monetary Policy Committee (MPC) member Shashanka Bhide's
statement that sustaining the economic growth momentum of 7 per cent in 2024-25
and beyond is feasible on the back of favorable monsoon, higher farm
productivity and improved global trade. Traders also took a note of Union
Finance Minister Nirmala Sitharaman's statement that reverse migration has
started in which a lot of people, who have a global footprint, are finding
businesses, professions and careers to be built in India. She said Ideally,
India should be a country which is worth for our grandchildren to stay and live
and lead their lives and contribute for the country rather than run away from
here because opportunities, job satisfaction, career enhancement, are better
there and not here. However, markets pared some gains in final minutes of trade
as traders remained on sidelines ahead of key updates on U.S. inflation and
corporate earnings this week. Finally, the BSE Sensex rose 89.83 points or
0.12% to 73,738.45 and the CNX Nifty was up by 31.60 points or 0.14% points to
22,368.00.
The US markets ended higher on
Tuesday with Nasdaq settling gain of over 245 points as several counters across
various sectors continued to attract strong buying amid expectations of strong
earnings from technology majors. Several technology heavyweights such as
Microsoft, Alphabet, Meta Platforms are scheduled to announce their quarterly
earnings this week. Other big names including Boeing, Intel, American Airlines,
Chevron and Exxon Mobil are also slated to report their quarterly earnings during
the course of this week. On the economic data front, the S&P Global US
Composite PMI declined to 50.9 in April from 52.1 in the previous month,
signaling only a slight expansion in the country's private sector, which was
the softest since December, a preliminary estimate showed. The S&P Global
Flash US Manufacturing PMI fell to a four-month low of 49.9 in April 2024, from
52.0 in March. The reading was expected to come in at 52.0. The S&P Global
US Services PMI dropped to a five-month low of 50.9 in April. A report released
by the Commerce Department showed new home sales spiked by 8.8 percent to an
annual rate of 693,000 in March after plunging by 5.1 percent to a revised rate
of 637,000 in February. Street had expected new home sales to rise to an annual
rate of 668,000 from the 662,000 originally reported for the previous month.
Building permits fell by 3.7 percent to a seasonally adjusted annual rate of
1.467 million in March 2024, revised from a preliminary estimate of 1.458
million. This follows a 2.3 percent increase in February.
Crude oil futures ended higher on
Tuesday after preliminary data showing a slowdown in U.S. manufacturing
activity in the month of April raised hopes the Federal Reserve will start
cutting interest rates soon. The S&P Global US Composite PMI declined to
50.9 in April from 52.1 in the previous month, signaling only a slight
expansion in the country's private sector, which was the softest since
December, a preliminary estimate showed. The weak data and renewed hopes of an
early rate cut weighed on U.S. dollar. The dollar index dropped to 105.61,
losing nearly 0.5%. Benchmark crude oil futures for June delivery surged $1.46
or 1.78% to settle at $83.36 a barrel on the New York Mercantile Exchange.
Brent crude for June delivery rose $1.42 or 1.63% to $88.42 per barrel on
London's Intercontinental Exchange.
Indian rupee ended higher against
the U.S. dollar on Tuesday on positive domestic markets and a soft American
currency. Traders took support with a survey showing that India's business
activity expanded at its fastest pace in nearly 14 years in the month of April
thanks to robust demand. It also showed easing input inflation and positive
jobs growth. That suggests India is well placed to remain the fastest growing
major economy this year after posting strong expansion over the past few
quarters. HSBC's flash India Composite purchasing managers' Index INPMCF=ECI,
compiled by S&P Global, rose to 62.2 this month from March's final reading
of 61.8. The reading has been consistently above the 50-mark separating
expansion from contraction since August 2021. On the global front, yen hit
fresh multi-year lows against the dollar and the euro on Tuesday, keeping
investors on heightened intervention watch ahead of the Bank of Japan's meeting
this week, while dovish policy maker chatter left sterling around its softest
in months. Finally, the rupee ended at 83.34 (Provisional), stronger by 2 paise
from its previous close of 83.36 on Monday.
The FIIs as per Tuesday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 13322.30 crore against gross
selling of Rs 15941.30 crore, while in the debt segment, the gross purchase was
of Rs 1721.38 crore with gross sales of Rs 776.80 crore. Besides, in the hybrid
segment, the gross buying was of Rs 22.88 crore against gross selling of Rs
25.36 crore.
The US markets ended higher on
Tuesday following positive earnings from top-tier companies and as investors
were focused on quarterly results from Magnificent Seven and other megacap
growth stocks. Asian markets are trading in green on Wednesday, following Wall
Street's continued rally for a second straight day. Indian markets squandered
most of the day's gains in last-hour selling on Tuesday and closed with modest
gains for a third session in a row. Today, markets are likely to open in green
terrain tracking positive global cues as tensions in the Middle-East
(Israel-Iran) eased. Traders continue to take support with report that India's
business activity expanded at its fastest pace in nearly 14 years this month
thanks to robust demand, also the report showed easing input inflation and
positive jobs growth. Sentiments will get a boost with a private report that
India's GDP growth is likely to average 7% from 2024-25 to 2029-30. Traders may
take note of report that the government is formulating action plans for as many
as 20 agricultural products including banana, mangoes, potato and baby corn
with a view to further boost export of these commodities. Additional Secretary
in the department of commerce Rajesh Agarwal said the action for each of these
products is likely to be ready in the next 3-4 months. However, there may be
some cautiousness ahead of monthly F&O expiry tomorrow. Traders may be
concerned as the Reserve Bank of India (RBI) in its latest bulletin said that
extreme weather events along with prolonged geopolitical tensions could pose a
risk to India's inflation trajectory, even as growth in the South Asian nation
exhibits an uptrend. Foreign fund outflows likely to dent sentiments in
markets. Foreign institutional investors (FIIs) net sold shares worth Rs
3,044.54 crore on April 23, provisional data from the NSE showed. Oil prices
rose in early trade on Wednesday, may add pressure on the markets. Oil prices
rose after industry data showed a surprise drop in U.S. crude stocks last week,
a positive sign for demand, and attention shifted away from hostilities in the
Middle East. Some pessimism may come as the net foreign direct investment (FDI)
in India, inflows minus the outflows, dropped sharply by 45.5 per cent in the
11 months of Financial Year 2024 (April 2023 to February 2024), when compared
with the same period a year ago due to a rise in repatriation of capital.
Telecom industry stocks will be in focus as data released by the Telecom
Regulatory Authority of India (TRAI) showed that the telecom sector witnessed a
1.88 per cent sequential growth in adjusted gross revenue (AGR), reaching Rs
67,835 crore in the third quarter (October-December) of FY24. On the earnings
front, Axis Bank, Hindustan Unilever (HUL), 5Paisa, AU Small Finance Bank,
Dalmia Bharat, DCB Bank, Equitas Small Finance Bank, Indian Hotels, Macrotech
Developers (Lodha), LTIMindtree, Nitin Fire Protection, OFSS and Syngene
International are among the notable companies scheduled to announce Q4FY24
numbers today.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
22,368.00
|
22,329.11
|
22,427.21
|
BSE
Sensex
|
73,738.45
|
73,597.87
|
73,969.45
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
302.95
|
161.10
|
160.10
|
162.80
|
NTPC
|
146.51
|
346.90
|
344.39
|
349.04
|
HDFC
Bank
|
134.14
|
1507.50
|
1498.34
|
1521.59
|
SBIN
|
122.92
|
773.00
|
766.46
|
778.61
|
Bharti
Airtel
|
120.75
|
1347.30
|
1315.94
|
1364.84
|
- Bharti Airtel's subsidiary --
Airtel Payments Bank has launched its eco-friendly NCMC (National Common
Mobility Cards) enabled debit and pre-paid cards.
- IndusInd Bank has successfully
executed RBI's programmable CBDC pilot, being the first Bank.
- Reliance Industries basis, the
company has reported 0.39% fall in its consolidated net profit at Rs 21,243
crore for Q4FY24 as compared to Rs 21,327 crore for Q4FY23.
- M&M's subsidiary -- Mahindra
Last Mile Mobility has unveiled its latest e-auto, the Treo Plus with a metal
body.