Nifty may get support near 8,000 while Bank Nifty may fall to 17,000, if it goes below today’s low
We had mentioned in Tuesday’s closing report that Nifty is headed higher if it manages staying above 8,300. In line with negative closing of US indices on Tuesday and the most of the Asian indices closing in the red on Wednesday the indices back home opened in the negative and suddenly started hurtling lower. After barely half and hour, they had fallen by more than 1%.
Sensex opened at 27,473, while Nifty opened at 8,317. Immediately after hitting a high at 27,501 and 8,332 the indices moved lower. At the end of the session the index hit a low at 26,678 and 8,083. Sensex closed at 26717 (down 723 points or 2.63%) while Nifty closed at 8,097 (down 228 points or 2.74%). NSE recorded a higher volume of 89.37 crore shares. Bank Nifty too lost heavily today. The index opened at 18,437 and after hitting a high at 18,580 the index moved lower to the level of 17,758 and closed at 17,800 (down 672 points or 3.64%). India VIX rose 13.27% to close at 19.6700.
The seasonally adjusted HSBC India Services Business Activity Index declined to a three-month low of 52.4 in April from 53 in March. On the positive side, panellists' confidence regarding the one-year outlook for activity improved, indicating that firms are optimistic the current deceleration in growth is a temporary soft patch.
The Real Estate (Amendment) Bill was listed for consideration and passing in Rajya Sabha yesterday, 5 May 2015, but opposition members objected to this, saying Housing and Poverty Alleviation Minister Venkaiah Naidu had assured the House that it will be brought only after consultations with various parties. The opposition parties insisted on sending the bill to a Select Committee. Sensing the mood, the government said it was not insisting on taking up the bill although it had been listed for consideration. The Lok Sabha on Wednesday passed the much-delayed and -debated Goods and Services Tax (GST) bill despite a walkout by the Congress party. The bill is likely to get support from most opposition parties in Rajya Sabha.
NMDC today said Life Insurance Corporation of India (LIC) has acquired almost 8 crore of its shares shares worth over Rs 1,116 crore in a market purchase. Post the share purchase, LIC's stake in NMDC has risen to 10.124% from 8.111%.
Ajanta Pharma rose 5.33% to close at 1411.60. It was the top gainer in ‘A’ group on the BSE. HDIL (10.13%) was the top loser in ‘A’ group on the BSE. Bharti Airtel (0.80%) was the only gainer in the Sensex 30 pack while BHEL (6.21%) was the top loser in the pack.
All the sectoral indices on the BSE fell, in the range of 1.65% to 4.24%. BSE Capital Goods (4.24%) was the top loser.
On Tuesday US indices closed in the red. Trade-deficit report indicated that the nation's trade gap hit its highest level in seven years. The widening trade deficit suggests that the US gross domestic product reading will go from a meagre 0.2% to negative territory when figures are revised later this month.
Asian indices which were trading today closed mostly in the red. Jakarta Composite (0.48%) was the only gainer while the top loser was Shanghai Composite (1.62%) was the top loser.
The HSBC China Services Purchasing Managers' Index rose to a four-month high of 52.9 from 52.3 in March, HSBC Holdings PLC said today suggesting activity outside the nation's factories improved modestly.
European indices were trading in the green. US Futures too were trading higher. Greece has reportedly made a loan repayment to the International Monetary Fund of 200 million euros ($224.9 million). The Greece government now faces a €750 million ($832 million) debt repayment to the IMF which is due on 12 May 2015. In the UK, Parliamentary Election is scheduled tomorrow, 7 May 2015.