9250-9225 CONTINUES TO BE SUPPORT AREA; 9367 IMMEDIATE HURDLE
While Dow ended marginally in the green, S & P 500 and Nasdaq fell 0.1% and 0.4% yesterday after digesting hawkish
The Fed concluded its two-day policy meeting Wednesday afternoon, giving a positive assessment of the U.S. economy while keeping rates unchanged, as was widely expected. In a statement, the Fed's policymaking committee did express some misgivings about the U.S. economy growing just 0.7 percent in the first quarter, but added they see the weakness as "transitory."
The U.S. private sector created 177,000 jobs last month, according to a report from ADP and Moody's Analytics. The final Markit services PMI reading for April hit 53.1 while the ISM non-manufacturing reading reached 57.5.
Dollar index rose about half a percent to 99.38. Treasury yields rose slightly, with the short-term two-year note yield near 1.298% and the benchmark 10-year yield around 2.311%.
European markets ended mixed with modest changes. Basic resources stocks led the losers amid a slide in metal prices with copper, nickel and zinc prices dropping by more than 3%.
Benchmark indices, after a positive start, saw a sustained downward move through the session to end marginally lower. Sensex lost 26 points to settle at 29895 while Nifty finished at 9312, down 2 points. BSE mid-cap index fell 0.3% but the small-cap index gained 0.1%. BSE Realty and IT indices climbed 1.5% and 1.4% respectively to become top gainers among sectoral indices while Healthcare index was the top loser, down 1%, followed by half a percent lower Consumer Durable and Capital Goods indices.
FIIs net sold stocks and stock futures worth Rs 518 cr and 436 cr respectively but net bought index futures worth Rs 63 cr. DIIs were net buyers to the tune of Rs 112 cr.
Ruee appreciated 9 paise to end at 64.3625/$.
Union Cabinet yesterday approved promulgation of an ordinance to amend the Banking Regulation Act, preparing ground to take tough action against chronic bank loan defaulters. The details will be revealed after it gets Presidential assent.
ICICI Bank's fourth quarter standalone profit jumped 188% y-o-y to Rs 2,0245 crore on the back of low base but bad loans increased sharply due to one account in cement sector. NII beat expectations, growing 10.3% to Rs 5962 cr y-o-y, with loan growth of 6.6% at Rs 4.64 lakhcr and net interest margin at 3.57% (against 3.12% qoq). Gross non-performing assets (NPA) as a percentage of gross advances increased 69 basis points sequentially to 7.89% and net NPAs rose 93 bps to 4.89%. Fresh slippages, stripped off Rs 5910 cr pertaining to one cement account, stood at around Rs 5900 cr, which was better-than-expected and lowest in 5 quarters.
Cabinet also approved National Steel Policy 2017 which aims to increase manufacturing of quality steel in the country, boost domestic steel consumption and turn India into a globally competitive steel industry.
Today morning Asian markets are trading and SGX Nifty is suggesting a marginally lower start for our market.
Yesterday was the fourth day of consolidation for Nifty after achieving the 9350 target last week.
9250-9225 continues to be the support area, with the stop-loss of which positional longs can be held on to. 9367, the top made last week, is the immediate hurdle, above which 9470 would be the next target to eye.
HDFC and Wockhardt will report their quarterly earnings today.