Indian equity benchmarks extended
gains to the third session in a row on Friday amid gains in Capital Goods,
Power, Utilities and Industrials shares. Strength across global markets after
the Fed hinted at a more tempered program of hikes in COVID-era interest rates
aided the sentiment on Dalal Street. Key gauges made an optimistic start and
stayed in green for whole day, as sentiments got a boost with Economic Affairs
Secretary Ajay Seth's statement that 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. Some support also came with a private report
stating that roles in Indian research and development (R&D) increased 42
per cent in the last three years. Job postings in R&D also grew by over 40
per cent between May 2020 and 2021. Among job seekers, searches for roles in
R&D increased 21 per cent in the last three years. Markets continued to
trade in fine fettle in late afternoon session, taking support from private
report stated that the Indian job market registered marginal year-on-year
growth of 3 percent across industry segments in June. It said banking,
financial services and insurance (BFSI), travel and tourism and chemical
industries ramped up hiring compared to the same month last year. Traders took
note of report that 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. However, upside remain
capped amid persistent foreign fund outflows in the capital market. Foreign
Institutional Investors (FIIs) were net sellers in the capital market on
Thursday as they offloaded shares worth Rs 925.22 crore. Finally, the BSE
Sensex rose 303.38 points or 0.56% to 54,481.84 and the CNX Nifty was up by
87.70 points or 0.54% to 16,220.60.
The US markets ended choppy
trading session mostly lower on Friday following the release of a closely watched
Labor Department showing stronger than expected U.S. job growth in the month of
June. The data eased worries about the economy while also adding to concerns
about aggressive interest rate hikes by the Federal Reserve. The Labor
Department said non-farm payroll employment jumped by 372,000 jobs in June
after surging by a revised 384,000 jobs in May. Street had expected employment
to increase by 268,000 jobs compared to the addition of 390,000 jobs originally
reported for the previous month. The stronger than expected job growth
reflected notable job gains in professional and business services, leisure and
hospitality, and healthcare. Meanwhile, the report showed the unemployment
remained at 3.6 percent for the fourth month in a row, matching street estimates.
On the sector front, most of the major sectors ended the day showing only
modest moves, contributing to the lackluster close by the broader markets.
Tobacco stocks showed a substantial move to the downside, however, with the
NYSE Arca Tobacco Index plunging by 3.4 percent to its lowest closing level in
well over a year. Telecom and steel stocks also saw some weakness on the day,
while strength was visible among brokerage and housing stocks. Meanwhile,
investors were looking ahead reports on consumer and producer price inflation,
which could impact the outlook for interest rates. Reports on retail sales,
industrial production and consumer sentiment are also on investors' radar.
Traders are also eyeing quarterly results from financial giants JPMorgan Chase
(JPM), Morgan Stanley (MS), Citigroup (C) and Wells Fargo (WFC).
Extending their gains for second
straight session, crude oil futures ended significantly higher on Friday, after
data showed a stronger-than-expected addition of jobs in the U.S. in the month
of June. Data released by the Labor Department today showed non-farm payroll
employment jumped by 372,000 jobs in June after surging by a revised 384,000
jobs in May. Street had expected employment to increase by 268,000 jobs
compared to the addition of 390,000 jobs originally reported for the previous
month. Meanwhile, a report from Baker Hughes said the number of active U.S.
rigs drilling for oil rose by two to 597 this week, rising for a fifth straight
week. The total active U.S. rig count, include those drilling for natural gas,
also climbed by two to 752. Benchmark crude oil futures for August delivery
rose $2.06 or 2 percent to settle at $104.79 a barrel on the New York
Mercantile Exchange. Brent crude for September delivery surged $2.37 or 2.3
percent to settle at $107.02 (Provisional) a barrel on London's
Intercontinental Exchange.
Indian rupee continued its
declining trend against dollar on Friday. Sentiments were fragile as FPIs have
dumped Indian shares worth Rs 50,203 crore in June. It is the highest net
outflow in over two years. Traders ignored Economic Affairs Secretary Ajay
Seth's statement that 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. On the
global front, safe-haven demand briefly lifted the yen on Friday after former
Japanese Prime Minister Shinzo Abe was shot while campaigning for a parliamentary
election. Finally, the rupee ended at 79.21 (provisional), weaker by 8 paisa
from its previous close of 79.13 on Thursday.
The FIIs as per Friday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 5799.15 crore against gross selling of Rs 6680.94 crore, while
in the debt segment, the gross purchase was of Rs 59.26 crore against gross
selling of Rs 81.37 crore. Besides, in the hybrid segment, the gross buying was
of Rs 7.12 crore against gross selling of Rs 9.09 crore.
The US markets ended lower on
Friday as stronger-than-expected jobs data helped ease growth worries but added
to expectations of another 75-bps rate hike at the upcoming Fed meeting later
this month. Asian markets are trading mostly in red on Monday as investors
braced for a U.S. inflation report that could force another super-sized hike in
interest rates. Indian markets ended higher for the third day on Friday, with
the Sensex climbing over 300 points amid mixed global market trends. Today,
markets are likely to make negative start amid weakness in Asian peers. There
will be some cautiousness with a private report that India's headline retail
inflation rate is expected to be 7 percent in June, largely unchanged from 7.04
percent in May, with a sharp pick-up in vegetable prices likely nullifying the
impact of the decline in prices of other food items. Traders will be concerned
as foreign investors continue to desert Indian equity markets and have pulled
out over Rs 4,000 crore this month so far amid steady appreciation of the
dollar and rising interest rates in the US. However, some respite may come
later in the day as RBI Governor Shaktikanta Das exuded confidence that the
price situation will gradually improve in the second half of the current
fiscal, and the central bank would continue to take monetary measures to anchor
inflation with a view to achieving strong and sustainable growth. Traders may take
note of report that India must grow by at least 8-10 percent per year for the
next 25 years if it wants to achieve its social and economic ambitions.
Meanwhile, In a global first, the Securities and Exchange Board of India (Sebi)
is planning to issue regular risk factor disclosures on market trends,
including surges and collapses, to help investors make right decisions by
learning from the regulator's insights. There will be some buzz in banking
stocks with a private report stating that with increases in lending rates, high
credit growth, and lower credit costs, banks are likely to report a significant
rise in net interest income (NII) and profits year-on-year (YoY) in the quarter
ended June 2022 (Q1FY23). Agriculture industry related stocks will be in focus
as he agriculture ministry data showed the area under coverage for paddy
declined 24 per cent to 72.24 lakh hectares so far in the ongoing Kharif sowing
season, while oilseeds acreage is lower by 20 per cent at 77.80 lakh hectares
because of delay in the progress of monsoon rains in some parts of India. There
will be some reaction sugar industry stocks as the government said India has
extended by two weeks a deadline for the export of 800,000 tonnes of sugar as
annual monsoon rains make it tough for many producers to move stocks from
factories to ports.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,220.60
|
16,160.50
|
16,278.10
|
BSE
Sensex
|
54,481.84
|
54,298.02
|
54,646.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil and Natural Gas Corporation
|
427.78
|
121.65
|
119.65
|
125.00
|
Hindalco Industries
|
255.06
|
355.70
|
348.54
|
365.44
|
Tata Motors
|
237.30
|
440.50
|
431.91
|
446.46
|
NTPC
|
153.75
|
143.50
|
141.60
|
144.80
|
Coal India
|
146.47
|
189.50
|
187.06
|
191.91
|
Coal India's subsidiary -- Northern Coalfields has dispatched 3.83 lakh tonnes of coal to electricity generating plants on July 7, 2022, the highest amount of dry fuel in a single day since the inception of the company.
The USFDA has completed a Pre-Approval Inspection and issued Form 483 with two observations to Dr. Reddy's Laboratories.
Axis Bank has entered into MoU with the Indian Air Force to manage salary accounts of the defense personnel.
Tata Motors' wholly owned subsidiary -- Jaguar Land Rover has reported a 37 per cent decline in retail sales at 78,825 units in Q1FY23.