Indian equity benchmarks ended
flat with positive bias after a volatile trading session on Tuesday led by
gains in Indusind Bank, Asian Paints shares amid weak global trends. After
making negative start, key indices extended losses in morning deals as
sentiments remained dampened as private report stated that the Reserve Bank of
India will deliver two more rate increases with the first of 25-30 bps later
this week. Some concern also came as Crisil Research pegged the headline
consumer price inflation to come at 6.8 per cent in FY23 - marginally higher
than the Reserve Bank's 6.7 per cent estimate - because of the pressures on the
food front, where the increase in prices has been double that of FY22. Market
participants also remained on sidelines ahead of the Reserve Bank of India's
(RBI) monetary policy decision on interest rates on August 05. However, markets
erased all their losses and traded near neutral lines with positive bias in
late afternoon session, taking support from finance minister Nirmala
Sitharaman's statement that India's macroeconomic fundamentals are intact and
there is no risk of the economy entering into recession or stagflation. She
said the government is trying to keep inflation below 7%. Some support also came as after Union
Minister of State for Finance Pankaj Chaudhary said that as per provisional
estimates released by National Statistical Office (NSO), Indian economy in
2021-22 has fully recovered the pre-pandemic real GDP level of 2019-20.
Besides, exchange data showed, Foreign Institutional Investors (FIIs) were net
buyers in the capital market on Monday, purchasing shares worth Rs 2,320.61 crore.
Finally, the BSE Sensex rose 20.86 points or 0.04% to 58,136.36 and the CNX
Nifty was up by 5.40 points or 0.03% to 17,345.45.
The US markets ended lower on
Tuesday, with Dow Jones Industrial Average ending over cut of one percent, as
rising tensions between the US and China, and signs of slowing global growth
weighed on sentiment. Tensions between the US and China have risen due to US
House Speaker Nancy Pelosi's visit to Taiwan. It is feared that Pelosi's trip
to Taiwan would raise tensions between the two economic superpowers. Chinese
foreign ministry spokesman Zhao Lijian said that Pelosi's visit would lead to
very serious developments and consequences. The White House has warned China
against turning her visit into a crisis. On the economic data front, data from
the Labor Department showed the number of job openings in the US fell by
605,000 from a month earlier to 10.7 million in June of 2022, the lowest in
nine months and below market expectations of 11 million. Stock specific
developments, Uber Technologies shares soared nearly 19 percent after the
company said that gross bookings reached an all-time high of $29.1 billion in
the second quarter this year, up 33 percent over the corresponding quarter last
year. Pinterest zoomed 12.25 percent, buoyed by news about Elliott Investment
Management becoming the largest shareholder of the company.
Crude oil futures ended higher on
Tuesday ahead of a meeting of the Organization of the Petroleum Exporting
Countries and its allies (OPEC+) this week that may not lead to a further boost
in crude supply amid concerns a possible global recession could limit energy
demand. The OPEC+ meet is scheduled to take place on Wednesday. The group is
widely expected to keep output level unchanged. Meanwhile, markets looked ahead
to weekly inventory reports from the American Petroleum Institute (API) and US
Energy Information Administration (EIA). Benchmark crude oil futures for
September delivery rose $0.53 or 0.6 percent to settle at $94.42 a barrel on
the New York Mercantile Exchange. Brent crude for October delivery gained $0.41
or 0.41 percent to settle at $100.44 a barrel (provisional) on London's
Intercontinental Exchange.
Indian rupee appreciated to hit a
one-month high, strengthening for the fourth straight session against dollar on
Tuesday amid foreign fund inflows and a weak dollar against key rivals
overseas. Besides, softening crude oil prices strengthened domestic forex.
Sentiments were upbeat after Union Minister of State for Finance Pankaj
Chaudhary said that as per provisional estimates released by National
Statistical Office (NSO), Indian economy in 2021-22 has fully recovered the
pre-pandemic real GDP level of 2019-20. Meanwhile, Finance Minister Nirmala
Sitharaman asserted there is no collapse in rupee and it is actually finding
its natural course. On the global front, pound weakened against the dollar on
Tuesday as traders turned to safe-haven currencies amid rising U.S.-China
tensions over Taiwan. Finally, the rupee ended at 78.63 (provisional), stronger
by 43 paisa from its previous close of 79.06 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 19375.96 crore against gross selling of Rs 14029.06 crore,
while in the debt segment, the gross purchase was of Rs 451.61 crore against
gross selling of Rs 62.85 crore. Besides, in the hybrid segment, the gross
buying was of Rs 6.24 crore against gross selling of Rs 10.91 crore.
The US markets ended lower on
Tuesday on rising tensions between the US and China amid US House Speaker Nancy
Pelosi's visit to Taiwan. Asian markets are trading mostly in green on
Wednesday as hawkish comments from Fed officials prompted a jump in Treasury yields.
Indian markets finished a volatile session barely in the green on Tuesday, as
gains in heavyweights such as Hindustan Unilever, Asian Paints and SBI were
offset by losses in the HDFC twins and Infosys. Today, markets are likely to
get flat-to-positive start amid mixed global cues. Investors will be eyeing the
services PMI data to be out later in the day. Traders will be taking
encouragement with Centre for Monitoring Indian Economy (CMIE) data showing
that the country's unemployment rate fell from 7.80 per cent in June to 6.80
per cent in July, the lowest level in the last six months, amid rising
agriculture activities during monsoon. Some support will come with a private
report that the corporate earnings growth during the first quarter of the current
fiscal is largely led by the banking, financial services and insurance (BFSI)
sector and also helped by credit cost moderation. However, there may be some
cautiousness as India's trade deficit widened to a record $31 billion in July
with a sequential decline in exports and somewhat flat imports owing to growing
recessionary trends in developed economies and elevated commodity prices. The
data released by the commerce ministry showed merchandise exports declined to a
five-month low at $35.2 billion in July while imports eased sequentially to $66
billion. Meanwhile, the Reserve Bank of India (RBI) will commence their 3-day
monetary policy meeting (MPC) on Wednesday, to mull rate hike trajectory. There
are expectation of the rate hike to be in the range of 30 to 50 basis points.
Oil & gas and aviation industry stocks will be in focus as the government
increased the windfall tax on domestically produced crude to Rs 17,750 a tonne
from Rs 17,000 a tonne earlier, a move that will hit producers like ONGC and
Vedanta. Also, government lowered the export tax on diesel and aviation turbine
fuel in line with softening international petroleum product prices. There will
be some reaction in insurance industry stocks as the Insurance Regulatory and
Development Authority of India (Irdai) proposed a single limit for the expenses
of general and health insurance firms. This move is expected to bring relief to
non-life insurers, especially private players. FMCG companies stocks will be in
limelight with a private report that consumption of fast-moving consumer goods
(FMCG) like packaged foods, beverages, and toiletries revived in the April-June
quarter in urban markets but was negative in rural India as people opted for
smaller packs. Investors awaited more of corporate earnings from India Inc.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,345.45
|
17,244.15
|
17,418.45
|
BSE
Sensex
|
58,136.36
|
57,811.23
|
58,394.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
649.35
|
107.00
|
105.56
|
108.21
|
ITC
|
389.82
|
309.95
|
306.55
|
315.00
|
Tata Motors
|
190.65
|
476.25
|
470.36
|
481.01
|
NTPC
|
182.78
|
159.55
|
157.36
|
160.91
|
State Bank of India
|
168.45
|
542.10
|
533.84
|
547.64
|
Tech Mahindra has entered into partnership with Union Bank of India.
Bharti Airtel has acquired 19,800 MHz spectrum in 5G auction by securing a pan India footprint of 3.5 GHz and 26 GHz bands.
Adani Ports and Special Economic Zone has handled 31.23 MMT of cargo in July 2022, implying a 13% implying Y-o-Y increase.
ITC has reported a rise of 33.46% in its consolidated net profit at Rs 4,462.25 crore for Q1FY23 as compared to Rs 3,343.44 crore for the same quarter in the previous year.