Nifty likely to head steadily lower
We had mentioned in Wednesday’s closing report that NSE’s CNX Nifty may move sideways but a close above 8,750 may pull the benchmark further higher. The 50-share index opened Thursday almost at this level and immediately rose higher. After hitting the day’s high, the benchmark moved lower. However, at around 2.25pm, it gave up all its strength and fell further. At the close of the session, Nifty hit its day’s low and closed near to it.
The S&P BSE Sensex opened at 28,805 while Nifty opened at 8,749. Both the indices hit a higher high at 28,979 and 8,788, respectively. Sensex hit a low of 28,412 and closed at 28,470 (down 152 points or 0.53%). Nifty moved lower to the level of 8,615 and closed at 8,635 (down 51 points or 0.59%). Bank Nifty too moved almost in the same manner. It opened at 19,346 and from the high of 19,373 fell to the low of 18,740 and closed at 18,811 (down 336 points or 1.76%). NSE recorded a volume of 85.71 crore shares. India VIX fell 2.03% to close at 15.1975.
The Indian government will reportedly table coal and mines bills in Rajya Sabha later in the day. The Ordinance replacement Bill related to auction of coalmines and mines and minerals will lapse on 5 April 2015 and will need to be replaced by the Bills by that time.
"If the Bill (Coal Mines) gets passed (in Rajya Sabha) then there would be auction of 15-20 coal blocks. It (the auction) will start in April-end or the first week of May," Coal Secretary Anil Swarup had said in an interview.
The OECD, in its latest Interim Economic Assessment of the world economy, said that India is expected to be the fastest-growing major economy in the world over the next two years.
After reviewing progress of various urban development programmes, Indian Prime Minister Narendra Modi had said that the economic growth model of a city should form an essential part of its smart city vision.
The Indian rupee strengthened against the dollar and reached its highest in two weeks on Thursday.
Mutual fund houses have said that tax benefits for retirement solutions should be provided on the lines of the new pension system (NPS), as they are planning to enter pension funds sector in a big way.
Coal India, the country’s largest coal producer, is likely to miss its output target of 507 million tonnes (MT) by over 10 MT in the current fiscal on account of various delays at the level of states in operationalising mines.
Coming back to Indian stock markets, Just Dial (10.73%) was the top gainer in ‘A’ group on the BSE. The gain was with a brokerage house maintaining its buy rating as it foresees the performance of the stock to continue to do well. PMC Fincorp (9.91%) which has been the top loser in the group in past two sessions was among the top two gainers today. Its board of directors will meet on 26 March 2015, to consider and pass the necessary resolution for an increase in the overall limit of investment by foreign institutional investors from the existing permitted limit of 24% to 49%.
KPIT Technologies (5.47%) was the top loser in ‘A’ group on the BSE. It reduced its March 2015 quarter guidance due to cross currency headwind.
State-run GAIL (2.19%) was the top gainer in the Sensex 30 pack, while Axis Bank (2.50%) was the top loser in the pack.
On Wednesday, US indices closed sharply higher. US Federal Reserve's policy statement indicated that the US central bank would move cautiously in lifting key interest rates. It said that the increase in interest rate may be considered only after the central bank is “reasonably confident” that inflation will return to its target and the job market improves further.
Except for Nikkei 225 (0.35%) all the other Asian indices closed up. Hang Seng (1.45%) was the top gainer.
European indices were showing mixed trading, while US Futures were trading in the red. German Chancellor Angela Merkel said on Thursday that the return of growth and a fall in unemployment levels in the euro zone showed that much progress had been made in the bloc, but the debt crisis had not been completely overcome.