The Indian equity market ended near day’s high on Tuesday snapping a four day losing streak amid a highly lackluster day. The session was so dull that NSE Nifty index was stuck in a mere 40 points range while BSE Sensex was trapped in a 160 points range. Nifty closed with again of 18 points at 7,749 while Sensex ended with again of 75 points at 25,305.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

A report by State Bank of India(SBI) highlighted that credit growth in India is unlikely to revive materially in near term as demand conditions are still acting as a drag. The report offered that it is too early and premature to conclude about the credit growth picking up in the country.

During the fiscal 2015-16, credit growth witnessed some improvement and stood at 11.3% as on March 18, 2016. However, come April 29 this year, credit off-take declined to 9.2%.

The report also stated that the supposed correlation between balance sheet cleaning and credit growth picking up will only happen once the growth cycle picks up significantly.

To aid credit growth, the Reserve Bank of India (RBI) has cut interest rates by 1.5% so far. However, the transmission of rates by banks has been much lower. Hopefully, with the marginal cost of funds based lending rate that came into effect from April 2016, banks are now in a better position to pass on the rate-cuts. However, more than this, the revival in the broad economy will play a key role in bringing about a more sustainable recovery in credit demand.

Engineering stocks are trading on a mixed note with Welspun Corp and Jyoti Structure leading the losses. In another news update it was reported that L&T Infotech, an arm of engineering giant Larsen and Toubro (L&T), has received approval from the SEBI for its proposed initial public offering (IPO).

The company had filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in April. SEBI approved its final observations on the draft offer documents on May 20, which is necessary for any company to launch a public offer.

The company’s IPO comprises an offer-for-sale of up to 17,500,000 equity shares of the subsidiary by L&T. The issue is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities.

USDINR trade today tradingdown 15 paise at 67.63 per US dollar.

Out of 1,812 stocks traded on the NSE, 1046 declined and 503 advanced today.

Top 5 Nifty Gainers: ICICI Bank (2.50%), Asian Paints (2.07%), Infosys Ltd (1.98%), Tata Motors (1.91%) and Axis Bank (1.90%).

Top 5 Nifty Losers: Cipla (-6.73%)

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Indian indices once again ended in the red extending its losing streak to fourth consecutive trading session. Equity market in India did start off on a promising note tracking overnight gains in the US markets, however it was short lived as indices lost ground gradually. Today’s decline was led by the health care, capital goods, realty and banking stocks. Even the mid cap and small cap stocks ended with marginal losses. On the other hand, FMCG, telecom, power and utilities ended with smart gains. Nifty closed with a loss of 19 points at 7,731 while Sensex ended with a loss of 72 points at 25,230.

Asian markets finished mixed as of the most recent closing prices with Japanese shares dropping amid renewed strength in yen as fresh data showed the country’s exports continued to fall. The Nikkei 225 & the Hang Seng fell 0.49% and 0.22% respectively while the Shanghai Composite gained 0.64%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.29% while London’s FTSE 100 is off 0.10% and Germany’s DAX is lower by 0.09%.

Shares of Oil and Natural Gas Corporation (ONGC) plunged more than 2% today after it was reported that the company is facing a repeat of the Krishna Godavari (KG) basin fiasco in Iran. ONGC alleges that 11.12 billion cubic meters of natural gas worth Rs 110.55 billion has flowed from its idling KG basin blocks in Bay of Bengal blocks to neighboring KG-D6 fields of Reliance Industries. The same is now on the verge of repeating in the Farzad-B field with Saudi Arabia in the Persian Gulf, which it had discovered in 2008 but no contract to exploit the 12.5 trillion cubic feet (Tcf) of recoverable reserves has so far been concluded with Iran.

Reportedly, a portion of Farzad-B field extends into territorial waters controlled by Saudi Arabia. Saudi Arabia has already drilled wells on the area falling in its territory, which it has named Hasbah field, and has begun production. The two fields are connected, with the area falling in Iranian territory holding larger share of 12.5 Tcf of recoverable reserves while the Saudi territory has only 3 Tcf or so. But the two fields are connected and whosoever is able to movefirst would extract more benefits.

According to the reports, it was expected that Prime Minister Narendra Modi’s visit to Tehran today and tomorrow may see finalizing of a contract, giving developmental rights of Farzad-B field to ONGC Videsh Ltd, the overseas subsidiary of ONGC. But Iran is yet to agree to US$ 4.3 billion development plan submitted by OVL.

Oil and gas stocks languished in red today, with ONGC and HPCL leading the losses.

Moving on to news from mining sector. According to a leading economic daily, Vedanta Resources plans to ramp up aluminum production from Jharsuguda and Korba smelters of Bharat Aluminum Co to 1.5 million tonnes (mt) from 0.9 mt this financial year.

Oil prices slipped in Asian trade on a strong dollar and signs that global crude supply is holding up even as volumes hit by unplanned outages rise to at least 5-year highs.

Shares of Power Grid surged 2.6% to Rs.148 on BSE. The company will replace BHEL in the BSE Sensex index from June 20. Following the development, shares of BHEL slipped 0.6% Rs.118 on BSE.

USDINR trade today trading up 4 paise at 67.40 per US dollar.

Out of 1,394 stocks traded on the NSE, 839 declined and 508 advanced today.

Top 5 Nifty Gainers: NTPC (2.98%), Tata Motors (1.62%), Cipla (1.09%), ICICI Bank (1.06%) and Reliance Ind. (1.05%).

Top 5 Nifty Losers: ONGC (-1.44%), BHEL (-1.35%), Adani Ports & Sez (-1.10%), Sun Pharma (-1.08%) and L&T (-1.03%),

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Its gets worst for the Indian equity market as indices extended losing streak to second consecutive trading session. Nifty ended below the 200-DMA however, just managed to close at the 7,750 mark. Nifty closed with a loss of 34 points at 7,750 while Sensex ended with a loss of 97 points at 25,301.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.1%, while the Hang Seng led the Shanghai Composite lower. They fell 0.67% and 0.02% respectively. European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.55%, while London’s FTSE 100 is off 1.38% and France’s CAC 40 is lower by 0.88%.

ITC gained 1.6% to Rs.329.95 on BSE. The company posted a net profit of Rs.24952 million for the quarter ended March 31, 2016 as compared to Rs.23611.80 million for the quarter ended March 31, 2015.

Lupin crashed 9.1% to Rs.1,505.15 on BSE. The stock was the top Nifty loser today. The pharma company posted a net profit after taxes and minority interest of Rs.8070.80 mn for the quarter ended March 31, 2016 whereas the same was at Rs.5470.10 mn for the quarter ended March 31, 2015.

Esab India jumped 3.6% to Rs.580 on BSE. The company reported a net profit of Rs.9.37 crore in the quarter ended March 2016 as against net loss of Rs.1.38 crore during the previous quarter ended March 2015.

SpiceJet cracked 10.4% at Rs.71.30. The company posted a quarterly profit of Rs.73.2 crore in the fourth quarter of 2015-16 on higher operational income. During the March quarter of 2015-16, the airline’s operational income rose to Rs.1,474 crore from Rs.790 crore in the same period a year ago.

GHCL rallied 7.3% to Rs.155.35 after the company reported its Q4 net profit stood at Rs.79 crore.The total income for the quarter was at Rs.650.4 crore.

Pidilite Industries climbed 6% to Rs.653. The company reported 48.97% increase in standalone net profit to Rs.115.04 crore for the March quarter.

Maruti Suzuki closed 0.51% to Rs.3,947. The company said that it will inspect suspected fault in 20,427 S-Cross vehicle, as per reports. The automobile firm will suspect fault and replace brake part in 20,427 units of S-Cross.

A total of 18 stocks registered a fresh 52-week high in trades today, whereas 39 stocks touched a new 52-week low on the NSE.

USDINR trade today trading down 7 paise at 66.43 per US dollar.

Out of 1,396 stocks traded on the NSE, 988 declined and 365 advanced today.

Top 5 Nifty Gainers: ITC Ltd (3.67%), Adani Ports & Sez (1.80%), Bharti Airtel (1.36%), Tata Motors (1.26%) and ICICI Bank (1.11%).

Top 5 Nifty Losers: CIPLA (-1.66%), Infosys Ltd (-1.21%), HDFC (-1.18%), Sun Pharma (-1.17%) and ONGC (-0.92%),

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.