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02-Jun-2023 08:34 Hrs IST |
Markets likely to get positive start tracking global peers
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<p style="text-align: justify;">Indian markets exhibited lackluster performance as late hour selling mainly played spoil sport and forced the indices end into the negative zone. Today, markets are likely to get positive start tracking global peers. Traders will be getting encouragement as Industry body CII said India's economy is expected to grow in the range of 6.5-6.7 per cent in the current financial year supported by strong domestic drivers and robust capex momentum of the government. Some support will come as citing a better-than-estimated global growth outlook, lower global crude oil prices and robust services exports, a foreign brokerage has revised upwards its India growth forecast by 70 bps to 6.2 per cent for the current fiscal. Some optimism will come as the finance ministry said GST collection in May rose 12 per cent to Rs 1.57 lakh crore as compared to the GST revenues in the same month last year. The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is Rs 1,57,090 crore of which Central GST is Rs 28,411 crore, State GST is Rs 35,828 crore, Integrated GST is Rs 81,363 crore (including Rs 41,772 crore collected on import of goods) and cess is Rs 11,489 crore (including Rs 1,057 crore collected on import of goods). Meanwhile, an inter-ministerial consultation is going on for formulation of a new industrial policy, which would aim at building a globally competitive business environment to increase manufacturing and export. This would be the third industrial policy after the first in 1956 and the second in 1991. However, foreign fund outflows likely to dent domestic sentiments. Provisional data from the National Stock Exchange showed that foreign institutional investors (FIIs) sold shares worth Rs 71.07 crore on June 1. Agriculture related stocks will be in focus as wheat procurement during the ongoing Rabi Marketing season (RMS) 2023-24, till 30th May 2023, progressed to reach 262 lakh metric ton (LMT) which has already surpassed the previous year's total procurement of 188 LMT by 74 LMT. There will be some reaction in NBFCs stocks as domestic rating agency Crisil said NBFC-MFIs' assets under management are expected to grow by up to 30 per cent in the current financial year. It said the year will also see an improvement in asset quality and profitability for the Non-Bank Finance Companies-Microfinance Institutions (NBFC-MFI) segment. Oil & gas industry stokcs will be in limelight as globally oil prices rose by the most in two weeks ahead of an OPEC+ meeting on Sunday.</p><p style="text-align: justify;">The US markets ended higher on Thursday as investors eyed May jobs report. Asian markets are trading in green on Friday after the bill to raise the U.S. debt ceiling was passed in the House of Representatives, advancing it to the Senate just days ahead of the default deadline.</p><p style="text-align: justify;">Back home, Indian equity benchmarks traded volatile and ended lower for the second consecutive session on Thursday. Markets made a cautious start but soon gained some traction as India's economic growth shot up by 6.1 per cent in the March quarter of FY23, beating street's expectations, as the expansion in manufacturing and construction surprised on the upside, reflecting sustained strength in domestic demand amid a gloomy global outlook. Besides, Chief Economic Advisor (CEA) V Anantha Nageswaran said the momentum is expected to continue in the current fiscal year (FY24) with solid growth prospects, on the back of higher-than-expected economic growth in FY23. Indices traded in green for the most part of the session, as sentiments remained positive after India's manufacturing PMI showcased encouraging developments in May, painting a notably positive picture for the sector. The S&P Global India Manufacturing Purchasing Managers' Index rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. However, markets erased all of their gains and entered into red terrain in late afternoon deals, as traders got anxious with the Reserve Bank of India's data report showing that growth of bank credit to industry decelerated to 7 per cent in April 2023 as compared with 8 per cent in corresponding month in the previous year. Some concern also came as the output of eight core industries slowed down to a six-month low of 3.5 per cent in April 2023 due to a decline in the output of crude oil, natural gas, refinery products and electricity. The core sector growth was 9.5 per cent in April 2022. Traders ignored newly elected President of Confederation of Indian Industry (CII) R Dinesh's statement that India's economy is expected to grow in the range of 6.5-6.7 per cent in the current financial year supported by strong domestic drivers and robust capex momentum of the government. Finally, the BSE Sensex fell 193.70 points or 0.31% to 62,428.54 and the CNX Nifty was down by 46.65 points or 0.25% to 18,487.75. </p>
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01-Jun-2023 08:39 Hrs IST |
Benchmarks likely to get cautious start amid mixed global cues
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<p style="text-align: justify;">Indian markets snapped four-day winning streak on Wednesday on weak global cues after weak Chinese data made investors worried about global growth. Today, benchmark indices are likely to get cautious start amid mixed cues from global counterparts and mixed economic data from domestic front. There will be some volatility in the markets ahead of weekly F&O expiry. Investors will be eyeing the manufacturing PMI data to be out later in the day for more cues. There will be some cautiousness as the government data showed that the production growth of eight key infrastructure sectors slowed down to a six-month low of 3.5 per cent in April 2023 due to a decline in the output of crude oil, natural gas, refinery products and electricity. However, traders may get some encouragement reacting to the passage of debt ceiling bill by the U.S. House of Representatives and domestic economic data released after market hours the previous day. Some respite may come as India's economic growth shot up by 6.1 per cent in the March quarter of FY23, beating street's expectations, as the expansion in manufacturing and construction surprised on the upside, reflecting sustained strength in domestic demand amid a gloomy global outlook. Besides, Chief Economic Advisor (CEA) V Anantha Nageswaran said the momentum is expected to continue in the current fiscal year (FY24) with solid growth prospects, on the back of higher-than-expected economic growth in FY23. Some support will come as the Centre's fiscal deficit narrowed to 6.4 per cent of the GDP in 2022-23 from 6.71 per cent in FY22, as anticipated by Finance Minister Nirmala Sitharaman in her Budget in February this year. In the Union Budget, the government aimed to further bring down the fiscal deficit - a key indicator of borrowing - during the current financial year 2023-24 to 5.9 per cent of the gross domestic product (GDP). Meanwhile, the Centre has said it received Rs 1,70,501 crore in revenue for April 2023, comprising Rs 1,58,901 crore in taxes, Rs 10,958 crore of non-tax income and Rs 642 crore of non-debt capital receipts. Adani Group stocks will be in focus today amid fund raising reports. Auto sector stocks will be in limelight reacting to their monthly sales numbers. </p><p style="text-align: justify;">The US markets ended lower on Wednesday as investors awaited a crucial vote on a bipartisan deal to suspend the government debt ceiling and set federal funding limits. Asian markets are trading mostly in green on Thursday as investors react to regional factory activity data for May. A private survey showed China's factory activity unexpectedly swung to growth from a decline in April.</p><p style="text-align: justify;">Back home, Indian equity benchmarks snapped their four-day gaining streak to close lower by over half a per cent on Wednesday due to profit-taking in Energy, Metal and Oil & Gas stocks amid weak trends in global markets. After the initial down-tick, markets traded with a negative bias throughout the session as investors preferred to stay on the sidelines ahead of key Q4 GDP growth data to be out later in the day. Traders were worried amid a private report which flagged concerns regarding the achievement of the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) for the financial year 2023-2024. Sentiments remained weak as Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh stated that hardening interest rates globally and worsening geo-political situation have impacted the foreign direct investment (FDI) inflows into India in 2022-23. Key gauges extended their fall in afternoon deals, as traders got anxious with Reserve Bank of India data report showing that the number of frauds in the banking sector went up to 13,530 in 2022-23 year-on-year, but the amount involved nearly halved at Rs 30,252 crore. However, markets managed to trim some of their losses in late afternoon deals, as traders took some solace with data showing that investment in the Indian capital markets through participatory notes has seen an upward trend in the past two months, with the number reaching Rs 95,911 crore in April-end, primarily driven by the country's robust economic growth. Meanwhile, the Reserve Bank of India is likely to introduce various policy measures in 2023-24 like the guidelines for expected credit loss-based provisioning. Finally, the BSE Sensex fell 346.89 points or 0.55% to 62,622.24 and the CNX Nifty was down by 99.45 points or 0.53% to 18,534.40.</p>
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31-May-2023 08:38 Hrs IST |
Markets likely to open in red ahead of Q4 GDP data
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30-May-2023 08:35 Hrs IST |
Markets likely to make flat-to-positive start
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29-May-2023 08:29 Hrs IST |
Markets likely to get gap-up opening on Monday
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26-May-2023 08:35 Hrs IST |
Benchmark indices likely to get flat-to-negative start amid mixed global cues
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25-May-2023 08:34 Hrs IST |
Domestic indices likely to open in red on monthly F&O expiry
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24-May-2023 08:33 Hrs IST |
Domestic indices likely to get pessimistic start
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23-May-2023 08:35 Hrs IST |
Markets likely to get optimistic start tracking positive cues from global markets
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22-May-2023 08:29 Hrs IST |
Markets likely to get cautious start amid mixed global cues
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