Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Nifty opened lower and traded in a narrow range throughout the day to close with a loss of 58 points at 18089 levels. Sectorially it was a mixed bag with FMCG being a major gainer. Sectors like aviation, FMCG cement, paints and tyres saw good momentum, benefitting from the fall in oil prices. For now, investors are waiting for the US Fed policy-meeting outcome, which would give some insights into the future rate cycle. On the domestic side, the market structure remains positive on the back of healthy macro data, strong earnings, and FIIs buying over the last few days. Several PSU stocks from across sectors like railway, defence, capital goods have been in strong momentum in the last few days.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a 6 day winning streak on May 03, falling in line with other Asian markets. At close, Nifty was down 0.32% or 57.8 points at 18089.9. Broad market indices ended in the positive even as the advance decline ratio ended marginally in the positive at 1.04:1.
European stocks rose on Wednesday bucking the slide in Asia with hopes resting on the Federal Reserve signalling later in the day that U.S. interest rate hikes might peak soon and the soft landing that central banks have been angling for is in sight.
India's services activity and new business rose at the fastest rates since June 2010, according to a monthly survey. The seasonally adjusted S&P Global India Services PMI Business Activity Index surged from 57.8 in March to 62 in April, its fastest expansion in output since mid-2010. The S&P Global India Composite PMI Output Index rose from 58.4 in March to 61.6 in April, its highest mark since July 2010.
Nifty fell on May 03 post the spinning top formation on the previous session. However it did not close at the intra day low keeping some hopes alive. Indian markets will open on May 04 digesting the outcome of the US Fed meet overnight. 18148 could be the resistance on the up, while a downward breach of 18042 could lead to more downsides
Ajit Mishra, VP - Technical Research, Religare Broking
Markets traded dull and lost nearly half a percent, citing caution ahead of the outcome of the US Fed meet. After the initial downtick, the Nifty index hovered in a narrow band and finally settled at 18,082 levels. Most of the sectoral indices traded in tandem with the benchmark and ended lower wherein IT, metal and energy were among the top losers. The broader indices outperformed and ended flat to marginally in the green.
With all eyes on the US Fed, we will see the reaction in early trades on Thursday. Besides, the scheduled weekly expiry would further add to the choppiness. Some consolidation can’t be ruled out in the index but the tone is likely to remain positive till Nifty manages to hold 17,850 levels. We thus reiterate our view to focus on stock selection.
Rupee closes marginally higher against US dollar
Rupee closed at 81.82 against US dollar, up 0.07 percent from its Tuesday's close of 81.88. The currency opened at 81.77 and touched a high and a low of 81.76 and 81.86 respectively.
The 10 year bond yield fell 8 basis points to 7.014% from its previous close of 7.094 percent. Bond yield and prices moves in opposite directions.
Market Outlook by Religare Broking
The on-going Q4 earning season will continue to dictate the trend of the markets.
Management commentary, revenue growth and future plans as well as raw material trend along with margin improvement will be the key focus areas.
Meanwhile volatility is expected to be high so investors should continue with their stock specific approach.
Besides, FOMC meeting outcome, global cues, crude prices and currency movement will be on investor’s radar.
Technical Outlook for Nifty
Nifty witnessed a much-needed breather in April and gained nearly 4%, after spending four months in a corrective phase.
On the sectoral front, all the indices, barring IT, participated in the movie where realty, auto and banking gained the maximum. The broader indices too witnessed a strong up move and gained in the range of 6%-8%.
Technically, indications are pointing in favor of the prevailing tone to continue. Improvement in participation from other key sectors like energy and IT is positive. Participants should maintain their focus on accumulating quality stocks on dips.
Nifty closes around 18,090, Sensex down 160 points; Bharti Airtel, Tech Mahindra top losers
India's benchmark Sensex ended 0.26 percent or 161 points lower to 61193.30 points while Nifty 50 Index lost 0.32 percent or 57.80 points to 18089.85 points. Nifty IT, Metal and PSU indices declined nearly 1% each while Nifty FMCG and Realty gained 0.8 percent and 0.3 percent respectively.
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Adani Enterpris | 1,839.50 | -4.19 | 5.55m |
| ONGC | 161.20 | -1.86 | 7.43m |
| Adani Ports | 669.80 | -1.72 | 5.35m |
| UPL | 739.90 | -1.67 | 916.42k |
| Bharti Airtel | 779.45 | -1.36 | 3.51m |
| Tech Mahindra | 1,039.40 | -1.33 | 2.04m |
| TCS | 3,179.80 | -1.23 | 2.24m |
| Axis Bank | 860.15 | -1.21 | 14.50m |
| Larsen | 2,355.90 | -1.2 | 939.45k |
| Bajaj Finance | 6,175.00 | -1.19 | 622.13k |
Solar Industries reports Q4 earnings
Net profit up 22.6% at Rs 206 cr vs Rs168 cr (YoY)
Revenue up 46.5% at Rs 1,928.5 cr vs Rs1,316.8 cr (YoY)
EBITDA up 22.6% at Rs 206 cr vs Rs168 cr (YoY)
Margin at 18.5% vs 20% (YoY)
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Engineers India | 95.91 | 16.07 | 3.35m |
| Rail Vikas | 130.20 | 9.97 | 11.67m |
| SJVN | 38.05 | 7.64 | 1.29m |
| BHEL | 86.79 | 6.43 | 4.11m |
| IRFC | 35.42 | 5.54 | 32.54m |
| NLC India | 87.07 | 5.54 | 616.04k |
| HUDCO | 53.90 | 4.07 | 1.04m |
| Bharat Dynamics | 1,027.00 | 3.38 | 79.10k |
| BEML | 1,275.00 | 3.26 | 7.80k |
| Mishra Dhatu Ni | 210.65 | 2.83 | 41.50k |
Markets At 3 PM
Sensex is down 210.36 points or 0.34 percent at 61,144.35. Nifty is down 71 points at 18,076.40. About 1632 shares have advanced, 1817 shares declined, and 168 shares are unchanged.
Hindustan Aeronautics crosses Rs 1 lakh crore market cap
Hindustan Aeronautics crossed Rs 1 lakh crore market cap for the first time on Wednesday. The stock gained nearly 3 percent in intraday. The stock since March advanced over 16 percent while so far this year it gained nearly 19 percent.
