Dear Trader…
Indian benchmark indices failed to hold on to their early upsurge and simply lost track to end marginally lower on Monday, dragged by heavy losses in Metal, Basic Materials and Oil & Gas stocks. After making cautious start markets soon traded higher, as traders found some solace with the commerce and industry ministry stating that total foreign direct investment into India rose 2 per cent to the highest ever $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government.
Domestic sentiments remained optimistic in afternoon deals, amid a private report stating that the Union government’s move to cut excise duty on petrol and diesel by Rs 8 and Rs 6 a litre, respectively, is likely to ease the retail inflation rate by up to 25 basis points (bps) from June onwards. If the move’s indirect impact on other items, including food prices, is also considered, the average inflation rate may reduce by 40 basis points during the current fiscal year. However, key gauges erased all of their gains to end lower as traders tuned cautious with report that the outflow of funds from domestic markets has continued as Foreign Portfolio Investors (FPI) remain net sellers. So far in the month of May, FPIs have pulled out Rs 37,216 crore as headwinds such as tighter monetary policy and rising inflation force investors towards safer havens.
Nifty futures opened at 16270.00 points against the previous close of 16253.25 and opened at a low of 16152.00 points. Nifty Future closed with an average movement of 246.00 points and a decline of around 88.40 points and 15784.00 points...!!
On the NSE, the midcap 100 index will decline 0.35% and smallcap 100 index is closing decline 0.80%. Speaking of various sectoral indices, the NSE saw gains in only Auto and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, June gold opened at Rs.50897, fell from a high of Rs.51156 points to a low of Rs.50897 with a rise of 141 points, a trend of around Rs.50970 and May Silver opened at Rs.61700, fell from a high of Rs.62273 points to a low of Rs.61600, with a rise of 283 points, a trend of around Rs.61690.
Meanwhile, the commerce and industry ministry has said that total foreign direct investment (FDI) into India rose 2 per cent to the ‘highest ever’ $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government. Total FDI comprises equity inflows, reinvested earnings and other capital. In 2020-21, the inflow stood at $81.97 billion. It was $74.39 billion in 2019-20 and $62 billion in 2018-19. It said that the foreign inflows are increasing despite challenges like a military operation in Ukraine and COVID-19 pandemic.
It added that these inflows have increased 20-fold since 2003-04 when the inflows were $4.3 billion only. It also informed that FDI equity inflow in manufacturing sectors has increased by 76 per cent in 2021-22 ($21.34 billion) compared to 2020-21 ($12.09 billion). FDI equity inflows stood at $58.77 billion in 2021-22 against $59.64 billion in 2020-21. It said that in terms of top investor countries, Singapore is at the top with a 27 per cent share, followed by the US (18 per cent) and Mauritius (16 per cent) during the last fiscal.
Technically, the important key resistances are placed in Nifty future are at 16202 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 16272 – 16303 levels. Immediate support is placed at 16006 – 15808 levels.
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