Bank Nifty will be weak only below 19,500 and Nifty below 8,860
We had mentioned in last week’s closing report that NSE’s CNX Nifty may be headed higher. The 50-share benchmark opened Monday at higher level than posted Saturday and hit its intra-day high after an hour of trading. After this, the index started moving lower. It occasionally dipped into the red as well. However, post 1.35pm, Nifty regained its strength and moved higher and reached almost the same level as the day’s high and closed near to it. The S&P BSE Sensex ended flat because it does not have cement stocks, which the Nifty has and cement stocks were rallying strongly today.
Sensex opened at 29,533 while Nifty opened at 8,954. The benchmarks hit their respective high at 29,576 and 8,972. The indices hit a low at 29,260 and 8,885. Sensex closed at 29,459 (up 98 points or 0.33%) while Nifty closed at 8,957 (up 55 points or 0.62%). Bank Nifty managed trading in the green for the entire session. It opened at 19,955 and moved between 19,751 and 20,066 and closed at 20,008 (up 317 points or 1.61%). NSE recorded a volume of 109.93 crore shares. India VIX fell 6.61% to close at 15.8475.
State-run oil marketing companies (OMCs) increased retail selling price of petrol by Rs3.18 a litre at Delhi (including state levies), with a corresponding increase in other states. The diesel price was raised by Rs3.09 a litre.
Both the Houses of Parliament will take up the important legislative business of considering the bills to replace the ordinances promulgated during the inter-session period in the second week of the ongoing budget session beginning today.
Ratings agency Standard and Poor's (S&P) reportedly said that a relatively heavy general government debt burden and large budgetary subsidies could constrain its sovereign credit ratings on India. The rating agency said that India's budget for 2015-16 highlighted the government's commitment to keeping the fiscal deficit low.
Moody's said the credit profile still faces a constraint from the fiscal side, while the government has decided to focus more on growth than the fiscal consolidation.
Indian manufacturing activity expanded at its slowest pace in five months in February as a slowdown in new orders dragged on overall output, a business survey showed today.
The HSBC Manufacturing Purchasing Managers' Index, compiled by Markit, fell for the second consecutive month, to 51.2 in February from 52.9 in January.
The finance ministry said that the union government and the Reserve Bank of India (RBI) have signed an agreement on monetary policy framework, whereby the two sides have officially decided on inflation-targeting by the RBI. RBI will aim to reach retail inflation of 6% by January 2016 and further to around 4% by March next year.
The Commerce and Industry Ministry today sought imposition of import duty on cement in order to boost exports from the country. Cement stocks were strong today.
Coming back to Indian stock market, NCC (17.28%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. Muthoot Finance (7.19%) was the top loser in ‘A’ group on the BSE. The stock gave up its gains today after hitting its 52-week high on Saturday.
Axis Bank (5.64%) was the top gainer in the Sensex 30 pack. Government, raising excise duty on cigarettes, pulled ITC (4.97%) lower. It was the top loser in the pack.
On Friday, US indices closed in the red. Except for SET Composite index of Thailand (0.31%), KLSE Composite (0.22%) and Taiwan Weighted (0.22%) all the other Asian indices closed in the green. Shanghai Composite (0.78%) was the top gainer.
The People's Bank of China on Saturday cut the benchmark interest rate by 25 basis points to 5.35% and reduced the benchmark saving rate by a similar margin to 2.5%.
HSBC's final reading of China's manufacturing sector in February came in at 50.7, much higher than the flash reading of 50.1.
European indices were trading in the red while US Futures were trading marginally in the green.