Indian equity benchmarks ended
higher for a second straight day and settled around a percent higher on
Thursday, following positive trends in global markets. Domestic bourses made a gap up opening and
stayed in green for whole day, as sentiments got a boost with the Reserve Bank
of India (RBI) announced a series of measures to attract foreign flows in a bid
to protect the local currency amid depleting foreign exchange reserves. India's
foreign exchange reserves have depleted by $38 billion to below $600 billion
since the Russian invasion of Ukraine late February. Some optimism also came as
Finance ministry released the fourth instalment of revenue deficit grant of Rs
7,183 crore to 14 states for the current fiscal. Markets remained firm in late
afternoon deals, taking support from the principal economic advisor with the
Department for Promotion of Industry and Internal Trade, Rupa Dutta's statement
that the government is working on to reduce compliance issues with a focus on
ease of doing business and has introduced the Insolvency and Bankruptcy Code
(IBC) keeping that in mind. Traders took some solace with private report stated
that the slew of measures announced by Reserve Bank of India (RBI) to enhance
foreign exchange inflows should help rupee to outperform its peers in emerging
market economies. Additional support also came as Commerce and industry
minister Piyush Goyal reviewed the progress of the implementation of the PM
GatiShakti national master plan, which aims at giving a push to the country's
multi-modal infrastructure network. Finally, the BSE Sensex rose 427.49 points or
0.80% to 54,178.46 and the CNX Nifty was up by 143.10 points or 0.89% to
16,132.90.
The US markets ended higher on
Thursday, extending their previous session's gains, as investors indulged in
some strong buying in several sectors amid hopes the central bank would
gradually start lightening its policy stance later this year. The minutes from
the Federal Reserve's June meeting, released on Wednesday, said the members of
the central bank said there would be another 50 or 75-basis point move in the
July meeting. The minutes also said that the participants continued to
anticipate that ongoing increases in the target range for the federal funds
would be appropriate to achieve the monetary policy committee's objectives.
Still, worries about a recession eased a bit as Fed officials have acknowledged
that higher rates might have a larger-than-anticipated impact on growth and
feel that an increase of 50 or 75 basis points would likely be appropriate at
the policy meeting in July. On the economic data front, data released by the
Commerce Department shows US trade deficit narrowed to $85.5 billion in May of
2022, from $87.1 billion a month earlier. Exports were up 1.2 percent or $3.0
billion in May from a month earlier, to $255.9 billion, while imports increased
to $341.4 billion in May from $339.5 billion in April. Data from the Labor
Department showed initial jobless claims rose to 235,000 in the week ended July
2nd. On a non-seasonally adjusted basis, initial claims rose by 11,919 from the
previous week to 219,507. On the sectoral front, energy stocks were among those
leading the gains on Thursday, reversing some recent losses as oil prices
rebounded. Exxon rose 3.2%, and Occidental Petroleum gained nearly 4%.
Crude oil futures ended higher on
Thursday despite data showing an unexpected increase in US crude supplies last
week. Data from Energy Information Administration (EIA) showed crude
inventories in the US rose by 8.2 million barrels in the week ended July 1. The
EIA data showed gasoline supplies dropped by 2.5 million barrels in the week,
while distillate stockpiles fell by 1.3 million barrels. The EIA data also
showed oil stocks in the Strategic Petroleum Reserve fell to 492 million
barrels, from 497.9 million barrels from a week earlier. Besides, a report from the American Petroleum
Institute on Wednesday showed U.S. crude supplies increased by 3.8 million
barrels last week. Benchmark crude oil futures for August delivery rose $4.20
or 4.3 percent to settle at $102.73 a barrel on the New York Mercantile
Exchange. Brent crude for September delivery surged $4.04 or 4 percent to
settle at $104.73 (Provisional) a barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against
dollar on Thursday as the hawkish stance of the U.S. Federal Reserve increased
the possibility of another aggressive rate hike this month. U.S. Federal
Reserve's minutes of the meeting held last month indicated a hawkish stance and
a rate hike of 75 basis points is likely in July. Traders were worried as
foreign institutional investors were net sellers in the capital market on
Wednesday as they offloaded shares worth Rs 330.13 crore, as per stock exchange
data. On the global front, dollar retreated from near a two-decade high against
major peers on Thursday, tracking an easing in Treasury yields, while U.S.
equity futures accelerated gains as investors continued to assess the economic
outlook. Finally, the rupee ended at 79.13 (provisional), weaker by 19 paisa
from its previous close of 78.94 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity segment and net buyers in debt segments. In equity
segment, the gross buying was of Rs 7000.09 crore against gross selling of Rs
7795.59 crore, while in the debt segment, the gross purchase was of Rs 1168.72
crore against gross selling of Rs 244.06 crore. Besides, in the hybrid segment,
the gross buying was of Rs 8.29 crore against gross selling of Rs 4.23 crore.
The US markets ended higher on
Thursday as fears of an economic slowdown cooled and sterling began to claw
back recent losses following British Prime Minister Boris Johnson's decision to
resign. Asian markets are trading in green on Friday following a strong session
on Wall Street overnight. Indian markets scaled their highest closing levels in
a month for a second straight day on Thursday amid gains across most sectors,
led by financial and IT shares. Today, markets are likely to extend their bull
run with gap-up opening mirroring firm global cues. Sentiments will get boost
as Economic Affairs Secretary Ajay Seth said the measures taken by Reserve Bank
of India (RBI) will increase inflows of overseas funds and help in
strengthening the rupee against the US dollar. RBI on Wednesday raised the
overseas borrowing limits for companies and liberalised norms for foreign
investments in government bonds as it announced a slew of measures to boost
foreign exchange inflows. Besides, Finance Minister Nirmala Sitharaman has
asked the Niti Aayog to prepare a report mapping all the industrial activities
such as corridors, logistics parks and pharma hubs so that they can be
incorporated under the PM Gati Shakti initiative of the government. Meanwhile,
Reserve Bank of India (RBI) Governor Shaktikanta Das has asked state
governments to find out effective ways to address the issues related to debt
and cash management. There will be some buzz in the insurance industry stocks
with a private report that the life insurance industry has reported a meagre
growth of 4.15 per cent in new business premiums in June, mainly due to the
contraction in Life Insurance Corporation (LIC) premiums. However, in the
April-June quarter (Q1FY23) life insurers saw their new business premiums (NBP)
rise by 40 per cent over the same period a year ago, on account of lower base.
IT industry stocks will be in focus as ratings agency Crisil said the
information technology services sector will see a sharp fall in revenue growth
to 12-13 per cent in FY23 from 19 per cent in FY22. However, it said the
current depreciation in the rupee, strong demand for new age technologies like
artificial intelligence, cloud computing and Internet of Things will help the
over $220-billion sector maintain a double digit growth. There will be some
reaction in power stocks as Union minister R K Singh said coal import for 10
per cent blending for the electricity plants to avoid blackouts will result in
a rise in power tariff by 60-70 paise per unit. Investors will be eyeing corporate
earnings report with the IT behemoth Tata Consultancy Services is likely to
report June quarter 2022 (Q1FY23) earnings post market hours today. There are
expectation that the IT services company to report a steady Q1 buoyed by deal
wins and strong demand momentum.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,132.90
|
16,069.06
|
16,173.61
|
BSE
Sensex
|
54,178.46
|
53,985.55
|
54,313.08
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil and Natural Gas Corporation
|
362.29
|
123.50
|
121.79
|
124.69
|
Hindalco Industries
|
186.99
|
364.40
|
348.96
|
372.16
|
NTPC
|
181.44
|
140.95
|
139.39
|
142.64
|
Tata Motors
|
176.16
|
431.75
|
423.05
|
436.70
|
ITC
|
137.94
|
291.80
|
289.15
|
293.80
|
Titan Company has reported nearly three-fold jump in its sales in the first quarter April-June quarter on a year-on-year basis, helped by a low base of the Covid-19 impacted quarter in the last year.
NTPC's wholly owned subsidiary -- NTPC Renewable Energy has signed MoU with Gujarat Alkalies and Chemicals.
Reliance Industries' subsidiary -- Reliance Retail has entered into long-term franchise agreement with Gap.
Bharti Airtel's subsidiary -- Bharti Airtel International (Netherlands) B.V. has raised tender offer to buy back up to $450 million of senior notes.