Watch out for close below the day’s low for a minor bout of weakness
With most of the Asian indices moving higher on the back of positive news from US and the efforts by the China's central bank to bring in money into the banking system for the first time in nine weeks, the Indian indices too edged higher marginally after again hitting another new high.
Both BSE 30-share Sensex and NSE 50-share Nifty witnessed a highly volatile session on Thursday. Sensex opened at 22,729 while Nifty opened at 6,803. Sensex moved between 22,644 and 22792.49 and closed at 22,715 (up 13 points or 0.06%). The Nifty moved between 6,777 and 6,819 and closed at 6,796 (up 0.20 points). The NSE recorded a huge volume of 119.24 crore shares, one of the highest ever.
NTPC was in news for settling dues of two Coal India subsidiaries, bringing an end to a tussle over quality of fuel the state-run miner was providing. NTPC dues have now come down to about Rs2,000 crore. Earlier, the finance ministry had advised both the companies to arrive at a price based on the average quality of coal supplied by Coal India's subsidiaries. The miner had initially rejected the proposal, saying it would violate the terms of the contract signed with NTPC, but later agreed after executives of the two companies met. NTPC was among the top three gainers in Sensex 30 stocks.
The Adani Group companies were the major outperformers today. Adani group is known for its proximity to Gujarat Chief Minister and Bharatiya Janata Party's (BJP) prime ministerial candidate Narendra Modi. Investors are betting that the BJP led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude in mid-May this year. Adani Enterprises rose 23.15% to close at Rs470.25, Adani Ports rose 5.68% to close at Rs193.65 while Adani Power rose 1.35% to close at Rs56.50 on the BSE.
US indices closed Wednesday in the green. The published rate forecasts of the current 16 Fed policymakers, known as the "dots" charts, suggested the federal funds rate would end 2016 at 2.25%, a half percentage point above Fed officials' projections in December. In minutes of the March 18-19 meeting published on Wednesday, several of the meeting's participants said the charts "overstated the shift in the projections," suggesting the Fed is not as eager to tighten policy as the dots had seemed to suggest. The minutes also showed that officials wanted to emphasize that the official policy statement, and not the dots charts, give a better indication of the likely path of rates. After its March meeting, the Fed said in a statement that it would wait a "considerable time" following the end of its bond-buying program before finally raising interest rates.
Except for Jakarta Composite (3.16%) and Straits Times (0.16%) all the other Asian indices closed in the green. Hang Seng (1.51%) was the top gainer.
European indices were trading in the green while US Futures were trading marginally lower.