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NSE Intra-day chart (10 August 2021)
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Market Commentary 11 August 2021
Benchmarks to open flat with positive bias on Wednesday


Indian equity benchmarks ended with marginal gains on Tuesday, on the back of buying in index heavyweights such as Bharti Airtel, Tech Mahindra and HDFC amid a largely positive trend in global markets. Markets made positive start and traded higher for most part of the day, as sentiments got a boost with the Centre for Monitoring Indian Economy (CMIE) data showing that India witnessed an addition of 16 million jobs in July mainly in the agriculture and construction sectors. Some optimism also came with the Finance Ministry's statement that a Bill to end retrospective taxes imposed on indirect transfer of Indian assets will encourage companies to invest in India and help the country become a $5-trillion economy. Traders also remained positive with private report stating that business resumption activity reached a record high since the start of the pandemic over 15 months ago for the week ended August 8. The Nomura India Business Resumption Index (NIBRI) rose to a record high of 99.4 for the week ending 8 August, from 94.0 last week, near the pre-pandemic level of 100, and surpassing the pre-second wave peak (of 99.3 in mid-February). However, markets trimmed all the gains in late hour of trading session, as country's unemployment rate rose to a six-week high of 8.1% in the week ended August 8, 2021. But, markets recovered from blip to end in the green, as country's exports rose by 50.45 percent to $7.41 billion during August 1-7, on account of healthy growth in the shipments of engineering goods, gems and jewellery as well as petroleum products. Some support also came as the Reserve Bank issued draft guidelines to further liberalise regulatory framework governing overseas investments with a view to promote ease of doing business. The RBI has placed on its website two documents -- draft Foreign Exchange Management (Non-debt Instruments - Overseas Investment) Rules, 2021 and draft Foreign Exchange Management (Overseas Investment) Regulations, 2021. Meanwhile, Minister of State for Finance Pankaj Chaudhary's statement that net Goods and Services Tax (GST) collection in the April-June quarter was over Rs 1.67 lakh crore, which is 26.6 percent of the budget estimate of Rs 6.30 lakh crore for full 2021-22 fiscal. Finally, the BSE Sensex rose 151.81 points or 0.28% to 54,554.66, while the CNX Nifty was up by 21.85 points or 0.13% to 16,280.10.   


The US markets ended mostly higher on Tuesday with the Dow and S&P 500 closing at record highs following the Senate passing the $1 trillion infrastructure bill. The Senate passed the infrastructure bill, which earmarks $550 billion in new spending for areas including transportation and the electric grid. The bill now heads to the House, although Speaker Nancy Pelosi, D-Calif., has said she will not bring it to the floor until the Senate also passes a budgetary proposal. On the sectoral front, steel stocks moved sharply higher over the course of the session, driving the NYSE Arca Steel Index up by 3.2 percent to its best closing level in three months. Considerable strength was also visible among oil service stocks, as reflected by the 2.5 percent jump by the Philadelphia Oil Service Index. However, buying interest was somewhat subdued as traders looked ahead to the release of a Labor Department report on consumer price inflation in the month of July on Wednesday. Street currently expects consumer prices to climb by 0.5 percent in July after advancing by 0.9 percent in June. The annual rate of consumer price growth is expected to slow to 5.3 percent from 5.4 percent. Core consumer prices, which exclude food and energy prices, are expected to rise by 0.4 percent in July following a 0.9 percent increase in June. Year-over-year core price growth is expected to drop to 4.3 percent from 4.5 percent.


Crude oil futures end higher on Tuesday as data showing a surge in fuel demand in India in the month of July pushed up prices. In India, fuel consumption, a proxy for oil demand, totaled 16.83 million tons in July, up 2.9% from June and 7.9% from the same period a year ago as most restrictions were eased. Besides, traders were also hopeful that energy demand in the US and Europe will rise significantly in the coming weeks. The US Energy Information Administration (EIA) said in a monthly forecast that gasoline consumption in the country is expected to average 8.8 million barrels per day (bpd) in 2021, up from 8 million bpd in 2020. The trend of rising employment and mobility is expected to continue into next year, leading to gasoline consumption averaging almost 9 million bpd in 2022. Crude oil futures for September rose $1.81 or 2.7 percent to settle $68.29 barrel on the New York Mercantile Exchange. October Brent crude surged $1.82 or 2.6 percent to settle at $70.86 a barrel on London's Intercontinental Exchange.


Continuing previous session drubbing, Indian rupee concluded substantially weaker against dollar on Tuesday on account of continued dollar demand from importers and banks. Traders were worried despite private report stating that the India's retail inflation likely slowed to three-month low in July, bringing it back within the central bank's target range, on falling food prices and an easing of supply chain disruptions. There's a material drop in edible oil and palm oil prices after tariff reductions and global oil price volatility has eased as well. On the global front, dollar hit a four-month high versus the euro on Tuesday after upbeat U.S. jobs data bolstered expectations that the Federal Reserve could soon start tapering its massive bond-buying program. Finally, the rupee ended 74.43, weaker by 17 paise from its previous close of 74.26 on Monday.


The FIIs as per Tuesday's data were net buyer in equity segment, while net seller in debt segment. In equity segment, the gross buying was of Rs 6223.03 crore against gross selling of Rs 5778.10 crore, while in the debt segment, the gross purchase was of Rs 161.83 crore against gross selling of Rs 237.90 crore. Besides, in the hybrid segment, the gross buying was of Rs 1.76 crore against gross selling of Rs 8.59 crore.


The US markets ended mostly higher on Tuesday as market sentiment was boosted by the U.S. Senate passing a $1 trillion bipartisan infrastructure bill. Asian markets are trading mixed on Wednesday as investors awaited a key report on U.S. inflation. Indian markets moved between gains and losses on Tuesday but managed to end the day with gains amid mixed global cues. Today, markets are likely to open flat with a positive bias tracking overnight gains on Wall Street. Some support will come as The Reserve Bank issued draft guidelines to further liberalise the regulatory framework governing overseas investments with a view to promote ease of doing business. Traders likely to continue take support with provisional commerce ministry data showing that the country's exports rose by 50.45 per cent to $7.41 billion during August 1-7, on account of healthy growth in the shipments of engineering goods, gems and jewellery as well as petroleum products. Traders may take note of the finance ministry's statement the economic impact of the second wave of the COVID-19 pandemic is likely to be muted and there are visible signs of economic rejuvenation. The latest Monthly Economic Review, released by the finance ministry, said the robust recovery in tax collections cushions the fisc towards meeting the budgeted support to the economy. It also said the recent sero-prevalence results signify that India can reduce the likelihood of severe illness due to COVID-19 if the country sustains the momentum of the vaccination programme. Besides, India recorded 36,316 new Covid-19 cases and 468 deaths in the past 24 hours, taking its tally to 32,033,333 and the death toll to 429,183. Meanwhile, Realtors' body Credai has demanded that input tax credit (ITC) under the GST regime should be allowed to developers, saying this could lead to a reduction in housing prices by 10 per cent. Credai, which has over 13,000 member developers, has urged the central government to facilitate the ITC for real estate developers under the composite scheme of GST. Banking stocks will be in focus with Moody's report that the asset quality risks for banks will rise in most parts of ASEAN and India, as the region battles new waves of coronavirus infections amid low vaccination rates. Also, a private report stated that Public sector banks have advanced 133,000 unsecured loans to individuals to meet Covid-19 treatment costs. There will be lots of important earnings announcements too, to keep the markets in action.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Bharti Airtel





State Bank of India










Tata Motors





Oil & Natural Gas Corporation






  • JSW Steel has reported 13.82 lakh tonnes crude steel production in July 2021, registering a growth of 11% as compared to 12.46 lakh tonnes in July 2020. 
  • ITC is rapidly scaling up its community development programs and has forged 83 PPP with several state governments and government bodies as part of the initiative. 
  • Tech Mahindra has collaborated with actor, producer, entrepreneur Jackky Bhagnani's music label Jjust Music under the Vande Mataram song launch initiative. 
  • Tata Motors has launched new variants of its flagship SUVs Harrier and Safari in the country.
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