Indian equity benchmarks ended
with strong gains on Thursday following value buying in banking, TECK and IT
stocks and a largely positive trend in global markets. Markets begun the day on
a strong note, as traders took encouragement as International Monetary Fund's
(IMF) Managing Director Kristalina Georgieva said that despite global
uncertainty and headwinds, India continues to be a bright spot in the global
economy. Investors continued to take support with Sanjiv Bajaj, President of
industry body CII stating that India is in a much better position to deal with
the challenges related to growth and inflation. Besides, foreign institutional
investors (FIIs) have net-bought shares worth Rs 758.37 crore on September 7,
as per provisional data available on the NSE. Markets extended gains in last leg
of trade, taking support as Finance Minister Nirmala Sitharaman highlighted
that inflation has come down to a manageable level and said the country's
economic growth remains a priority for the government. She added that job
creation and equitable distribution of wealth remain the other focus areas. The
sentiments remained ebullient amid private report stating that the Indian
market has chartered a divergent path with most world markets over the past
three months. To illustrate, the benchmark Sensex is up 7 per cent over the
past three months even as the MSCI World index has declined 7 per cent.
Finally, the BSE Sensex rose 659.31 points or 1.12% to 59,688.22 and the CNX
Nifty was up by 174.35 points or 0.99% to 17,798.75.
The US markets ended higher after
moving between gains and losses on Thursday, extending their previous session
gains, as traders digested comments from Federal Reserve Chair Jerome Powell,
who reiterated the central bank's commitment to aggressively fighting
inflation. Powell also once again warned about the dangers of allowing elevated
prices to become entrenched, noting the Fed has a responsibility to bring
inflation back down to 2 percent. He said the longer inflation remains well
above target, the greater the risk the public does begin to see higher
inflation as the norm, and that has the capacity to raise the costs of getting
inflation down. On the sectoral front, Biotechnology stocks turned in some of
the market's best performances on the day, driving the NYSE Arca Biotechnology
Index up by 3.4 percent. Substantial strength was also visible among banking
stocks, as reflected by the 2.8 percent surge by the KBW Bank Index. The index
continued to rebound after ending Tuesday's trading at its lowest closing level
in well over a month. On the economic data front, the Labor Department released
a report unexpectedly showing a modest decrease in initial jobless claims in
the week ended September 3rd. The report showed initial jobless claims edged
down to 222,000, a decrease of 6,000 from the previous week's revised level of
228,000. Street had expected jobless claims to inch up to 240,000 from the
232,000 originally reported for the previous week. With the unexpected dip,
jobless claims fell to their lowest level since hitting 202,000 in the week
ended May 28th.
Crude oil futures ended higher on
Thursday after dropping to a seven-month low in the previous session as some
technical traders bought the dip and Russia threatened to halt oil and gas
exports to some buyers. Further, oil prices rose despite data showing a sharp
increase in crude inventories in the US in the week ended September 2nd. Data
from Energy Information Administration (EIA) showed crude stockpiles rose by
8.844 million barrels last week, the highest for a week since the week ended
April 8. Crude inventories were expected to drop by 250,000 barrels last week.
The data also showed that the US Strategic Petroleum Reserve saw an outflow of
7.5 million barrels last week. Benchmark crude oil futures for October delivery
rose $1.60 or about 2 percent to settle at $83.54 a barrel on the New York
Mercantile Exchange. Brent crude for November delivery surged $1.15 or about
1.30 percent to settle at $89.15 a barrel on London's Intercontinental
Exchange.
Erasing previous session drubbing,
Indian rupee ended higher against dollar on Thursday, on persistent selling of
the American currency by exporters. Sentiments were upbeat as International
Monetary Fund's (IMF) Managing Director Kristalina Georgieva said that despite
global uncertainty and headwinds, India continues to be a bright spot in the
global economy. Besides, healthy gains in equity markets also supported the
domestic currency. On the global front, euro was hovering above Tuesday's two-decade
low on Thursday as investors awaited a policy decision from the European
Central Bank (ECB) and comments from the head of the Federal Reserve for
insight on the path for global monetary tightening. Finally, the rupee ended at
79.69 (Provisional), stronger by 26 paisa from its previous close of 79.95 on
Wednesday.
The FIIs as per Thursday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 6309.73 crore against gross selling of Rs 6198.68 crore, while
in the debt segment, the gross purchase was of Rs 709.02 crore against gross
selling of Rs 516.68 crore. Besides, in the hybrid segment, the gross buying
was of Rs 370.86 crore against gross selling of Rs 23.33 crore.
The US markets ended higher on
Thursday mainly lifted by financial institutions and healthcare companies, as
investors digested hawkish remarks from policymakers that cemented bets of a
large interest rate hike later this month. Asian markets are trading mostly in
green on Friday as investors digest Federal Reserve Chair Jerome Powell's
latest comments as he vowed to raise rates to tackle inflation until the job is
done. Indian markets ended higher with gains of around a percent on Thursday as
positive global cues, sharp fall in crude oil prices and strong overseas flows
aided the sentiments. Today, the markets likely to continue their previous
session's northward journey with positive start following gains in global
markets. Some support will come with Finance Minister Nirmala Sitharaman's
statement that India has ramped up the import of crude oil from Russia at
discounted prices amid sanctions on Moscow as part of the country's inflation
management. Buying by Foreign investors likely to aid sentiments. Foreign
institutional investors (FIIs) have net bought shares worth Rs 2,913.09 crore
on September 8, as per provisional data available on the NSE. Besides, commerce
and industry minister Piyush Goyal said the Indo-Pacific Economic Framework
(IPEF) will open up opportunities for countries like India to work in
partnership with other like-minded nations and ensure that supply chains remain
open and businesses don't suffer, particularly during difficult times. However,
there may be some cautiousness as the Centre for Monitoring Indian Economy said
consumer sentiments in India deteriorated in August 2022 and in the first week
of September, after having improved substantially in the previous month, with
significant dip in urban sentiments. According to CMIE, the Index of Consumer
Sentiments (ICS) shrunk by 0.5% in August, after having risen by an impressive
6.7% in July, and further by a 3.1% in the first week of September. Traders may
take note of report that the government imposed a 20 per cent export duty on
non-Basmati rice except for parboiled rice to boost domestic supplies amid a
fall in area under the paddy crop in the current Kharif season. There will be
some buzz in steel industry stocks with Crisil's report that steel-makers are
in for better times from the second half of the current fiscal as lower input
cost and robust domestic demand will ease their margin pressure and lift
operating margins to over 25 per cent. Power stocks will be focus as a draft
government plan showed India expects annual electricity demand to grow at an
average of 7.2% over five years ending March 2027, nearly double the growth
rate of over 4% seen during the five years to March 2022. There will be some
reaction in broking industry stocks as ICRA Research in a note said the growth
in the domestic broking industry is moderating, following a robust performance
during the 2021-22 financial year (FY22). It added during the first quarter of
FY23, the net operating income for the industry fell 10 per cent, while net
profits dropped 25 per cent on a quarterly basis.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,798.75
|
17,724.59
|
17,840.29
|
BSE
Sensex
|
59,688.22
|
59,431.96
|
59,828.21
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
712.28
|
105.95
|
104.74
|
107.79
|
Tata Motors
|
193.36
|
442.35
|
437.39
|
449.94
|
Oil & Natural Gas Corporation
|
146.29
|
131.90
|
130.89
|
133.54
|
Axis Bank
|
134.10
|
781.65
|
765.10
|
790.20
|
State Bank of India
|
122.40
|
545.25
|
538.40
|
549.20
|
Axis Bank has entered into partnership with Paynearby.
Bharti Airtel is eyeing to roll out 5G services within a month and cover key metros by December.
Dr. Reddy's Laboratories has launched Lenalidomide Capsules, a therapeutic equivalent generic version of Revlimid (lenalidomide) Capsules approved by USFDA in U.S. market.
Coal India is aiming to reach close to its production target of 306 MT in the first half of FY23, provided its mining areas are not extremely affected by heavy rains.