Nifty may rally if Tuesday’s lows hold. Bank Nifty trend is positive
We had mentioned in Monday’s closing report that NSE’s CNX Nifty has to close above 8,300 for a bounce back. The 50-stock index opened Wednesday marginally lower and witnessed a move in the red for most of the session. Bank Nifty traded mostly in the green.
The S&P BSE Sensex opened at 27,396 while Nifty opened at 8,275. The indices hit a low at 27,177 and 8,219 before moving to a high of 27,439 and 8,308, respectively. However, both the benchmarks closed the day in the red. Sensex closed at 27,226 (down 170 points or 0.62%) while Nifty closed at 8,240 (down 45 points or 0.55%). Bank Nifty had a complete opposite trading pattern today. It moved most in the green and closed higher. It opened at 18,256 and after hitting a low at 18,202 it reached upto 18,432 and closed at 18,303 (up 56 points or 0.31%). NSE recorded a volume of 70.03 crore shares. India VIX fell 1.01% to close at 17.2350.
The Cabinet Committee on Economic Affairs (CCEA) Wednesday approved a clear policy on testing requirements for discoveries made under New Exploration and Licensing Policy (NELP) blocks which will help settle the long pending issue with regard to 12 discoveries in five blocks pertaining to ONGC (six discoveries) and Reliance Industries (six discoveries). Finance Bill will be taken up in the Lok Sabha tomorrow, 30 April 2015.
The Union Cabinet on Wednesday approved the proposal to set up 100 smart cities across the country. In addition to this, old housing projects initiated by the previous government have also been cleared.
The Indian government has raised the import duty on sugar from 25% to 30% and imposed other restrictions on inbound shipments. The CCEA also decided to waive off the 5% excise duty on production of ethanol.
As many as 224 central sector infrastructure projects in sectors like road, rail and power were showing cost overrun of over Rs2 lakh crore till December-end, and Parliament was informed today.
Coming back to the Indian stock market, Welspun Corp rose 19.95% to close at Rs78.15 on the BSE. It was again the top gainer today after posting improved consolidated results for quarter ended March 2015 on Tuesday.
KPIT Technologies fell 19.99% to close at Rs 124.05 on the BSE. The stock fell in spite of improved result posted on Tuesday after market hours.
Axis Bank (3.30%) was the top gainer in the Sensex 30 pack. It posted a net profit of Rs2,180.59 crore for the quarter ended 31 March 2015 as compared to Rs1,842.32 crore for the quarter ended 31 March 2014. Total income has increased from Rs10,17.86 crore to Rs12,384.39 crore for the relevant period. Bharti Airtel (3.32%) was the top loser in the Sensex 30 pack despite posting good March 2015 quarter result.
The US indices had mixed closing Tuesday with Dow and S&P500 closing in positive.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy, which began yesterday, will conclude with the release of a post-meeting statement later today.
Except for Shanghai Composite (0.01%) all the other trading Asian indices closed in the red. Jakarta Composite (2.61%) was the top loser.
In Japan, Monetary Policy Meeting of Bank of Japan (BOJ) is scheduled tomorrow. The Japanese stock market was shut due to Showa Day Holiday.
China's central bank is reportedly planning to launch a credit-easing program to help restructure trillions of dollars of local-government debt. Chinese banks would be able to swap local government bailout bonds for loans from the central bank under the plan, according to reports.
European indices were trading in the red. US Futures too were trading lower.