Nifty has to close above 7,550 to regain its uptrend
We had mentioned in Tuesday’s closing report that Nifty, Sensex were looking weak and that Nifty would have to stay above 7,400 for the uptrend to continue. Key Indian equity indices were trading in the red during the afternoon session on Wednesday ahead of another crucial meeting of the US Federal Reserve later in the evening. Later in the day, buying resumed and the indices improved to close in the green. The trends of the major indices during Wednesday’s trading are given in the table below:
During the bear-phase of Wednesday’s trading, sector-wise, the S&P BSE consumer durables index tanked by 3.94%, metal index fell by 1.52%, auto index dropped by 1.27% and basic materials index went down by 1.16%. Consumer durable stocks were among the worst hit. The BSE consumer durable index slumped 3.65%; Rajesh Exports was the top loser from this space, down 10% to Rs583.20. PC Jewellers, Whirlpool, Titan, Hitachi Homes and Symphony were also among the losers, down 0.5-5.3% each. Hindalco, Asian Paints, Vedanta, Bajaj Auto, Cairn India and Sun Pharma were among the losers in the earlier part of the day.
Losses in the stock markets were capped on the back of gains in index heavyweights ITC, Infosys and Maruti Suzuki. Banks and realty stocks continued to go up and the Bank Nifty closed 0.88% higher than Tuesday’s close. On the sectoral front, banking, FMCG and IT stocks witnessed buying, while auto, metal and oil & gas stocks witnessed selling pressure.
Rising demand for the last mile connectivity in emerging markets of Africa and south-east Asia fuelled India's three-wheeler (3W) exports growth, according to a report released by ICRA. India's three-wheeler exports grew at a compound annual growth rate (CAGR) of 20% over the past decade with export sales of over 4.1 lakh units in 2014-15, Investment Information and Credit Rating Agency report said. In respect to growing trend of three-wheeler exports, the report attributes strong demand from international markets on back of rising demand for last-mile connectivity owing to lack of well-developed public transport system in emerging markets in Africa and south-east Asia. "As per industry estimates, while countries such as Sri Lanka, Bangladesh followed by Middle East and Africa account for majority (90%) of exports from India," the study said. Indian original equipment manufacturers have also ventured into the relatively developed markets in the Asean and Latin American region over the past few years. India also positioned itself as the largest manufacturer for three-wheelers globally. Over the past decade from fiscal year 2006-15, the Indian three-wheeler industry witnessed a CAGR of 8.9% in unit sales driven by steadily rising exports as well as domestic demand, it said. Bajaj Auto shares closed at Rs2,244 up 0.70% on the BSE.
US stocks closed mixed as investors digested the newly-released economic data while awaiting Wednesday's US Federal Reserve policy announcement. The Dow Jones Industrial Average rose 22.40 points, or 0.13%, to 17,251.53 on Tuesday. The S&P 500 fell 3.71 points, or 0.18%, to 2,015.93. The Nasdaq Composite Index lost 21.61 points, or 0.45%, to 4,728.67. The Fed started its highly-anticipated policy meeting on Tuesday and is due to hold a press conference on Wednesday. Most analysts believed the US central bank would not raise its interest rates at this meeting.
Oil prices dropped as the market expected that global supply exceeded the demand. The West Texas Intermediate for April delivery on Tuesday moved down 84 cents to settle at $36.34 a barrel on the New York Mercantile Exchange, while Brent crude for May delivery decreased 79 cents to close at $38.74 dollars a barrel on the London ICE Futures Exchange, Xinhua news agency reported. Hopes faded that major crude producers would freeze output levels to ease a global glut as Iran reportedly said Monday that it intended to ramp its production level back up to the 4 million barrels a day.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: