Welcome to Indian Share Market
Updated on 22 May 2017
The following are major two events that will dictate market direction this week
Development on GST, record FII inflows, better-than-expected Q4 show and optimism over prospects of good rainfall this year, set the stage for Dalal Street’s record-breaking spree during the last week.
The stock market hit yet another peak in the week gone by. The week would have ended on a higher note, had the US political turmoil not surfaced.
The S&P BSE Sensex on Friday ended flat at 30,464 after witnessing a 374-point swing in intraday trade. On similar lines, the broader Nifty50 index of National Stock Exchange (NSE) settled below the psychological level of 9,500 at 9,427.90, down 1.55 points with 19 constituents ending in the green.
On a weekly basis (May 14-May 19), the 30-share index gained 0.9 per cent while NSE’s Nifty added 0.28 per cent.
Among key developments, the GST Council finalised four tax rates of 5, 12, 18 and 28 per cent to apply on services including telecom, insurance, hotels and restaurants under the biggest tax reform since independence.
The rates are in line with those finalised for goods. With this, rates of all items except a handful, including gold, have been decided ahead of the roll out of the Goods and Services Tax (GST) regime from July 1.
State-run Hudco on Friday made a stunning debut as the scrip got listed at Rs 73.45 on BSE, a premium of 22.42 per cent over its issue price of Rs 60 per share. The scrip closed the day at Rs 72.50, up 20.83 per cent. The Rs 1,224-crore initial public offering (IPO), which was sold in the Rs 56-60 price band, saw nearly 80 times subscription between May 8 and May 11.
After lagging for the last few quarters, India's largest bank State Bank of IndiaBSE 1.72 % bounced back, and how! The lender on Friday reported a whopping 123 per cent jump in standalone net profit at Rs 2,814.82 crore for the March quarter. The result is seen as positive news not only for SBI or public sector banks alone, but the economy as a whole, as SBI is responsible for nearly a quarter of the flow of bank credit to the economy.
F &O expiry: The May 2017 F&O contracts will expire on Thursday (May 25). Volatility will be high as traders will roll over positions in the futures & options (F&O) segment from the near month May 2017 series to June 2017 series.
Support level - Nifty closing below 9400, would take it to till 9200.
Resistance - ON the upper side, Nifty closing above 9500 would take it to 9600.