Nifty may head lower, if it closes below 7,460
We had mentioned in Friday’s closing report that Nifty, Sensex were in no man’s land and that indices are probably waiting for global cues, which seem positive so far. The major indices of the Indian stock markets rose on Monday based on foreign institutional investors’ interest and higher global markets on Friday and Monday. But it could not gain momentum and closed marginally higher over Friday’s close. The trends of the major indices in Monday’s trading are given in the table below:
The major indices in the Indian stock markets rose for a second consecutive session on Monday, led by Tata Motors, after it posted robust sales for February and on improved global risk appetite after gains on Wall Street and in Europe last week.
WPI (wholesale price index) inflation remained in the negative zone for a 16th month at (-)0.91% in February as food articles, mainly vegetables and pulses turned cheaper. The Wholesale Price Index-based inflation was (-)0.9% in January. In February last year, it was (-)2.17%. This is the 16th straight month since November 2014 when deflationary pressure has persisted. Food inflation stood at 3.35% in February compared with 6.02% in January, showed official data. Inflation in pulses and onion eased to 38.84% and (-)13.22%, respectively. The rate of price rise in the case of vegetables was (-)3.34%, and for fruits, it stood at (-)1.95%. Price rise in potato was (-)6.28% while that of egg, meat and fish came in at 3.47%.
The inflation print in the fuel and power segment was (-)6.40% and for manufactured products, it read (-)0.58% in February. The December WPI inflation has been revised to (-)1.06% from the provisional estimate of (-)0.73%. Reserve Bank mainly looks at retail inflation data, which is expected later in the day while firming up monetary policy stance. It also takes into account industrial production numbers, which as per latest reading fell for a third straight month, contracting 1.5% in January due to poor showing of manufacturing. Industry has raised its pitch for a rate cut as factory output numbers continue to disappoint and the government stuck to the fiscal consolidation path in the Budget 2016-17, giving more elbowroom to the apex bank to ease monetary policy at the first bimonthly policy review for the next fiscal on April 5.
Rain and hailstorms have hit parts of northern India since Friday, which have flattened wheat, mustard and coriander crops in states like Punjab, Uttar Pradesh and Haryana. BP Yadav, director of India Meteorological Department (IMD) said that while crops have been affected, full damage cannot be quantified as of now. Rains are expected to halt for two to three days in the states of Punjab and Haryana, but will resume post March 17th, Yadav said adding that there are worries on the eastern side of the country. These worries are likely to reduce agricultural income and aggregate demand in the country and thus apply pressure on corporate revenues. This will, in turn, apply pressure on the possibility and extent of a bull market in the Indian stock markets for the next few months.
Glenmark Pharma has received final nod from the USFDA to manufacture and market therapeutical equivalent of Endo Pharmaceutical's Frova tablets, used to treat migraine headaches, in the American market, the company said in a BSE filing. Quoting IMS data, Glenmark said the approved product has an estimated market size of USD 87.8 million for the 12 months ended January 2016. Glenmark shares closed at Rs830.85, up 1.09%.
US pharmaceutical giant Pfizer Inc's India unit said on Monday it had stopped selling its popular Corex cough syrup, after regulators banned it saying it was likely to pose a risk to humans. Pfizer shares closed at Rs1,760.80, down 8.67%.
Gold bounced back on Monday, inching closer to last week's 13-month high as the dollar remained under pressure ahead of the U.S. Federal Reserve's policy meeting. The U.S. dollar was at one-month lows against a basket of major currencies. The main focus is the U.S. central bank's policy meeting on March 15-16, after it lifted rates for the first time in nearly a decade in December. Investors in the precious metals market are also looking at a Bank of Japan meet.
The rupee trimmed its earlier gains, but was still quoting higher by 8 paise against the American currency on sustained bouts dollar selling from banks and exporters amid higher domestic equities. The rupee resumed higher at Rs66.99 against Friday’s closing level of 67.05 at the Inter-bank Foreign exchange (forex) market. It strengthened further at 66.8750 on good bouts of dollar selling from banks before quoting at 66.97 at 1030 hours. The domestic unit hovered in a range of 66.9950 to 66.8750. Sustained capital inflows are supporting the rupee sentiment. This is important in the light of resumed inflows into the Indian stock markets from foreign institutional investors.
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: