Nifty, Sensex may be range bound; Bank Nifty still weak – Wednesday closing report
Nifty has been trendless. Trend may emerge after the budget
We had mentioned in Tuesday’s closing report that NSE’s CNX Nifty and Bank Nifty continue to remain weak but the chances of a further fall will reduce, if Nifty closes above 8,800 and Bank Nifty above 19,200. Nifty opened Wednesday above the level of 8,800 and moved further higher to hit a higher high. The 50-share benchmark then moved in a range upto around 1.50pm, after which it started moving lower. After trading near the Tuesday’s closing level for more than an hour, the benchmark closed Wednesday marginally higher.
S&P Sensex opened at 29,115 while Nifty opened at 8,802. Sensex reached up to 29,270 while Nifty hit a high at 8,841. The indices did not breach Tuesday’s low. Sensex hit a low at 28,968 while Nifty moved down to 8,751. Sensex closed at 29,008 (up 3 points or 0.01%) while Nifty closed at 8,767 (up 5 points or 0.06%). NSE recorded a volume of 80.97 crore shares. India VIX fell 3.60% to close at 20.7750. Bank Nifty fell 0.80% to close at 18,733. The February futures & options segment expire on Thursday.
The railway budget for 2015-16 will be presented by Minister Suresh Prabhu on Thursday, while the Economic Survey will be out on Friday.
The Ministry of Petroleum & Natural Gas, after trading hours Tuesday, said that Shashi Shankar, Director (T&FS), ONGC has committed gross misconduct while dealing with a tender for Procurement of Twenty One Blowout Preventers (BOP). Taking strong note of the lapses the government on 23 February 2015, he ordered suspension of Shankar with immediate effect to ensure fair and transparent inquiry.
The Rajya Sabha Tuesday passed the Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2014 that seeks to empower Delhi Metro Rail Corporation, other Metros, Public Transport Companies, Companies of Delhi Government, New Delhi Municipal Council and successors to Major Port Trusts to get their properties and premises evicted of unauthorised companies in a speedy manner. This Amendment Bill was already approved by the Lok Sabha during the monsoon session of Parliament.
Rating agency Moody's Investors Service said its assessment of India's credit ratings will be determined mainly by the extent of the country's fiscal reforms, and not on recent revisions to its economic growth data. The rating agency said that rising private external debt levels and banking sector challenges will continue to pose sovereign credit risks to India. Moody's rates India at "Baa3", the lowest investment grade rating, with a "stable" outlook.
There is huge anticipation that the Indian government will rationalise excise duty structure for the cement sector.
The union government is likely to cut its annual fertiliser subsidy by 4% to around Rs70,000 crore in its budget proposals for fiscal year 2015-16, two government sources with knowledge of the matter told media. The government's push to locally manufacture defence equipment sees the sector can fetch close to $17 billion from exports. Recently the government increased FDI in the sector to 49%.
The government has said that it has initiated the process of developing four airports through public private partnership mode but there was no move to privatise them as of now.
Coming back to Indian stock markets, Siemens (5.40%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today.
Central Bank of India (8.07%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week high yesterday. HDFC (2.43%) was the top gainer in the Sensex 30 pack. Dr Reddy’s Lab (2.48%) was the top loser in the pack.
US indices closed Tuesday in the green.
Federal Reserve Chairwoman Janet Yellen signalled to financial markets that the Fed would soon drop the word “patient” from its forward guidance. She also mentioned that the outlook of inflation will be the deciding factor of when the Fed will hike rates for the first time since 2006.
US services sector expanded in February 2015 at its fastest pace since October, according to a preliminary reading from financial data firm Markit. US consumer confidence fell more than expected in February 2015 from a multi-year high, according to industry group the Conference Board.
Asian indices showed mixed performance. NZSE 50 (2.09%) was the top gainer while SET Composite index of Thailand (0.58%) was the top loser.
The preliminary HSBC China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, rose to 50.1 in February compared with a final reading of 49.7 in January, HSBC Holdings PLC said today.
European indices were trading lower. US Futures were trading flat.
Eurozone finance ministers yesterday backed new reforms proposed by Greece in
exchange for a four-month financial lifeline that will keep the country afloat and in the single currency for the time being.