Indian equity benchmarks snapped
a two-day gains and ended marginally lower on Tuesday as investors preferred to
remain on the sidelines ahead of the key events -- RBI's monetary policy and
the US inflation data -- due later this week. Weak trend in Asian and European
markets also played spoilsport for the domestic markets. The markets opened on
a positive note but soon wiped out gains to trade lower as traders got anxious
after a private report forecasted a steeply higher retail inflation print for
July, pegging it at 6.7 per cent, up 190 basis points from the previous month,
citing the sharp rise in food prices. Some concern also came as exchange data
showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs
1,892.77 crore on Monday. Markets added losses in afternoon deals, as traders
remained concerned after the team, led by researchers at the University of East
Anglia (UEA) and the University of Cambridge, UK, found that India's sovereign
credit rating could be downgraded due to the impact of climate change and the
rise in temperature volatility by as early as the 2030s. Some concern also came
as Moody's cut credit ratings of several small to mid-sized U.S. banks and said
it may downgrade some of the nation's biggest lenders, warning that the
sector's credit strength will likely be tested by funding risks and weaker
profitability. Sentiments remained down-beat amid reports that a fresh set of
1.25 lakh entities, including government agencies, are currently under probe by
the Goods and Services Tax (GST) authorities in the drive to curb fake input
tax credit (ITC). These are entities found to have taken supplies from bogus entities
identified in the initial two-month drive held by the Central Board of Indirect
Taxes and Customs (CBIC) earlier. Finally, the BSE Sensex fell 106.98 points or
0.16% to 65,846.50 and the CNX Nifty was down by 26.45 points or 0.13% to
19,570.85.
The US markets ended lower on
Tuesday due to concerns about global economic growth after data showed China's
exports and imports both fell more than expected in July, threatening recovery
prospects and adding to pressure on policymakers to unveil additional stimulus.
Further, weakness also prevailed in markets as Moody's lowered credit ratings
for 10 smaller U.S. banks and said it was reviewing ratings for six larger
ones, renewing focus on the health of the banking system. A broad sell off in
regional bank shares-including KeyCorp and Comerica-made financial stocks among
the worst performers in the S&P 500. Bank of America, JPMorgan Chase and
Citigroup shares were caught in the downdraft and also declined. On the
economic data front, the Commerce Department released a report on Tuesday
showing the U.S. trade deficit narrowed in the month of June. The report said
the trade deficit shrank to $65.5 billion in June from a revised $68.3 billion
in May. Street had expected the trade deficit to decrease to $65.0 billion from
the $69.0 billion originally reported for the previous month. The narrower
trade deficit came as the value of imports slid by 1.0 percent to $313.0
billion, while the value of exports edged down by 0.1 percent to$247.5 billion.
Crude oil futures ended higher on
Tuesday after a report from the U.S. Energy Information Administration
projected U.S. GDP growth to rise by 1.9% this year. The Energy Information
Administration (EIA) expects Brent crude oil prices to average $86 in the
second half of 2023, up about $7 from the previous forecast. Meanwhile, traders
now await, weekly oil reports from the American Petroleum Institute (API) and
Energy Information Administration (EIA). Benchmark crude oil futures for
September delivery rose $0.98 or about 1.19 percent to settle at $82.92 a
barrel on the New York Mercantile Exchange. Brent crude for October delivery
rose $0.83 or 0.97 percent to settle at $86.17 a barrel on London's
Intercontinental Exchange.
Indian rupee weakened
considerably against dollar on Tuesday due to fresh demand for American
currency from banks and importers. Investors also preferred to remain on the
sidelines ahead of the key events -- RBI's monetary policy and the US inflation
data -- due later this week. The rupee sentiment was hit with a private report
forecasted a steeply higher retail inflation print for July, pegging it at 6.7
per cent, up 190 basis points from the previous month, citing the sharp rise in
food prices. The domestic currency was also weighed down by dollar's strength
against some other currencies overseas. On the global front, U.S. dollar turned
higher on Tuesday after another disappointing set of Chinese trade figures hurt
the yuan, the Aussie and kiwi, while the yen also eased after Japanese real
wages declined for a 15th straight month. Finally, the rupee ended at 82.91
(Provisional), weaker by 16 paise from its previous close of 82.75 on Monday.
The FIIs as per Tuesday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 11794.31 crore against gross
selling of Rs 9542.33 crore, while in the debt segment, the gross purchase was
of Rs 391.27 crore with gross sales of Rs 448.89 crore. Besides, in the hybrid segment,
the gross buying was of Rs 18.26 crore against gross selling of Rs 42.20 crore.
The US markets ended lower on
Tuesday after Moody's downgraded the credit rating on several regional banks.
Asian markets are trading mixed on Wednesday as China's consumer price index
fell in July, for the first time in 28 months. Indian markets gyrated in a
narrow trading band and ended lower on Tuesday, amid alternate bouts of buying
and selling. Today, markets are likely to get positive start. All eyes will be
on the Reserve Bank of India's monetary policy meeting as it will enter its
second day today. There are expectations that the rate setting panel will keep
the repo rates steady on Thursday, but adopt a hawkish tone amid rising
vegetable prices. Some support will come as the World Trade Organization (WTO)
said that two separate dispute settlement panels have stated that India and the
US have mutually resolved disputes with regard to certain measures on steel and
aluminium products, and additional duties on certain products from the US.
Traders may take note of Finance minister Nirmala Sitharaman's statement that
the 28 per cent GST on full face value of supplies in casinos, race courses and
online gaming will result in higher revenues. However, upside may remain
limited with a private report indicating that India's retail inflation likely
accelerated to 6.40% in July on surging food prices, breaching the upper end of
the Reserve Bank of India's 2%-6% tolerance band for the first time in five
months. There may be some cautiousness with report that Indian wheat prices
surged to a six-month high due to limited supplies and robust demand ahead of
the festival season. The increasing prices may prompt New Delhi to eliminate
import duties on the cereal to bolster supplies and control prices ahead of key
state polls and next year's general election. Besides, foreign institutional
investors (FII) offloaded shares worth Rs 711.34 crore on August 8, provisional
data from the National Stock Exchange (NSE) showed. Meanwhile, Capital markets
regulator SEBI has decided to provide a facility for exemption from one-time
password (OTP) to facilitate the reversal of erroneous transfers of securities
in demat accounts. There will be some reaction in broadcast sector stocks as
the Telecom Regulatory Authority of India (Trai) issued a new consultation
paper for the broadcasting sector, seeking to discuss customer fees and whether
Direct To Home (DTH) operators should mandatorily provide free-to-air channels.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,570.85
|
19,524.50
|
19,625.80
|
BSE
Sensex
|
65,846.50
|
65,713.57
|
66,018.47
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State Bank of India
|
250.39
|
573.70
|
570.01
|
575.81
|
ICICI Bank
|
237.85
|
981.00
|
973.34
|
987.64
|
HDFC Bank
|
218.87
|
1649.00
|
1642.16
|
1655.71
|
Tata Steel
|
212.75
|
118.15
|
117.56
|
119.11
|
NTPC
|
153.15
|
218.15
|
214.64
|
221.04
|
Hero MotoCorp has received 25,597 bookings for the Harley-Davidson X440, since opening the bookings on the July 4, 2023.
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Adani Ports and Special Economic Zone has reported 80% rise in consolidated net profit at Rs 2,119.38 crore Q1FY24 as compared to Rs 1,177.46 crore for Q1FY23.
TCS has been selected as a strategic partner by the Government of India to transform the GeM into a state of-the-art public procurement platform with enhanced transparency, efficiency, and inclusivity.