Indian equity benchmarks
continued winning run for the third straight session and settled with gains of
over half percent each on Tuesday, led by gains in Auto, Realty and Oil &
Gas stocks amid positive global cues. The benchmarks witnessed a gap up opening
and continued to hover in the positive range throughout the session, as
sentiments got boost on private report stating that during the April-July
period, the central government achieved more than a third of the direct tax
collection for this financial year as personal tax collection exceeded
corporation tax mop-up amid tightened enforcement and compliance measures.
Overall direct tax collections, net of refunds, including corporation and
personal income tax, grew by 40 per cent in the first four months of FY23 to Rs
5 trillion, which is nearly 35 per cent of the target of Rs 14.2 trillion for
the whole fiscal year. Sentiments remained positive as the Income Tax
Department said tax collected on income of companies surged by 34 per cent in
the first four months of the current fiscal that began in April, indicating
that a simplified tax regime with low rates is yielding results. Sentiments
remained upbeat in late afternoon deals as India's inflation based on wholesale
price index (WPI) eased to 13.93% in the month of July 2022 as against 15.18%
in June, as prices of food articles, nonfood articles and crude petroleum &
natural gas declined. Sector wise, Oil & Gas industry remain in focused, as
diesel demand in India fell for the second month in a row as the onset of
monsoon chipped away consumption in key sectors like agriculture. Some support
also came as the commerce ministry is proposing a host of direct and indirect
incentives such as deferral of import duties and exemption from export taxes to
revamp Special Economic Zones through a new legislation. Traders also took a
note of Former RBI Governor D Subbarao's statement that India may become a $5
trillion economy by 2028-29 only if the GDP grows at nine per cent per annum
consistently for the next five years. He said there are eight key challenges
for India to overcome to achieve the dream of $5 trillion economy. Finally, the
BSE Sensex rose 379.43 points or 0.64% to 59,842.21 and the CNX Nifty was up by
127.10 points or 0.72% to 17,825.25.
The US markets ended mostly
higher on Tuesday. The Dow Jones Industrial Average rallied, rising for a fifth
day as earnings results from Walmart and Home Depot showed consumer spending
could remain strong enough to keep the economy from tipping over into a downturn.
Sentiments got boost as report from the Federal Reserve showed US industrial
production increased by more than expected in the month of July. The Fed said
industrial production climbed by 0.6 percent in July following a revised
unchanged reading in June. Street had expected industrial production to rise by
0.3 percent compared to the 0.2 percent dip originally reported for the
previous month. Meanwhile, traders largely shrugged off a Commerce Department
report showing new residential construction tumbled by much more than expected
in the month of July. The report showed housing starts plunged by 9.6 percent
to an annual rate of 1.446 million in July after slumping by 2.4 percent to a
rate of 1.559 million in June. Street had expected housing starts to decline by
1.2 percent to a rate of 1.540 million. With the much steeper than expected
drop, housing starts dove to their lowest annual rate since hitting 1.430
million in February of 2021. Building permits, an indicator of future housing
demand, also fell by 1.3 percent to an annual rate of 1.674 million after
inching up by 0.1 percent to a revised rate of 1.696 million in June. On the
sectoral front, retail stocks turned in a strong performance following the
upward earnings news from Walmart and Home Depot, with the Dow Jones US Retail
Index surging by 2 percent to its best closing level in well over three months.
Crude oil futures ended deeply in
red on Tuesday, magnifying their previous sessions' losses, on worries about
outlook for energy demand and on a potential increase in OPEC supply. The
world's biggest crude producer Saudi Aramco has also indicated a potential
increase in output. Saudi Aramco said that it plans to raise crude oil output
to its maximum capacity of 12.3 million barrels per day by 2025 if requested by
the Saudi Arabian government to meet the needs of global consumers. Further,
disappointing economic data from the US and China on Monday raised worries
about oil demand. Benchmark crude oil futures for September delivery fell $2.88
or about 3.2 percent to settle at $86.53 a barrel on the New York Mercantile
Exchange. Brent crude for October delivery dropped $2.76 or 2.9 percent to
settle at $92.34 a barrel on London's Intercontinental Exchange.
Indian forex and money market
remained shut on Tuesday on account of Parsi New Year.
The FIIs as per Friday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 9023.30 crore against gross selling of Rs 6774.45 crore, while
in the debt segment, the gross purchase was of Rs 816.89 crore against gross
selling of Rs 659.08 crore. Besides, in the hybrid segment, the gross buying
was of Rs 2.28 crore against gross selling of Rs 8.54 crore.
The US markets ended mostly
higher on Tuesday as Walmart and Home Depot posted better-than-expected
financial results and a slew of economic data painted a mixed picture of the
economy. Asian markets are trading mostly in green on Wednesday as investors
await the release of the minutes of the U.S. Federal Reserve's July 26-27
policy meeting later in the day. Indian markets settled near four-month highs
on Tuesday as fag-end buying in Reliance Industries' stock pushed indices off
lows. Also, upbeat global mood, and steady decline in inflation (CPI and WPI),
kept the bulls charged on Dalal Street. Today, domestic markets are likely to
open in green with signs of inflation coming down, and global oil prices on a
weak footing. Some support will come as State Bank of India's (SBI) Chairman
Dinesh Khara said that things might get better on the inflation front towards
the end of September. He said the supply side constraints getting addressed and
crude oil prices trending low will help ease the situation. Traders may take
note of a private report that the UK India Business Council sees opportunities
for trade, investment, and collaboration with India across financial technology
(fintech), food and beverage, electric vehicle (EV), and other sectors.
Meanwhile, a private report stated that the Goods and Services Tax (GST)
Council may make rate changes in some services or products and withdraw some
exemptions in a bid to correct instances of inverted duty. PNG, CNG supplier
companies stocks will be in focus after state-run gas utility Mahanagar Gas
reduced prices for compressed natural gas (CNG) by six rupees per kg and
domestic piped natural gas (PNG) by four rupees per standard cubic meter in and
around Mumbai, effective August 17. There will be some reaction in power and
coal industry stocks as Union coal secretary Anil Kumar Jain said that thermal
power stations have coal stocks that will last for the next 17 days and
Mahagenco has stocks for eight to 10 days. Dairy products stocks will be in limelight
as Amul and Mother Dairy has announced a price hike of Rs 2 per litre from
August 18 on account of rising input costs. This is the second hike in six
months by both the brands.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,825.25
|
17,779.84
|
17,854.89
|
BSE
Sensex
|
59,842.21
|
59,703.11
|
59,952.18
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
692.07
|
113.00
|
111.50
|
114.10
|
Oil & Natural Gas Corporation
|
312.30
|
139.95
|
136.74
|
142.54
|
Tata Motors
|
167.96
|
489.85
|
481.56
|
494.76
|
ICICI Bank
|
138.04
|
879.25
|
875.60
|
883.70
|
Hindalco Industries
|
111.54
|
428.90
|
422.59
|
434.99
|
Bharat Petroleum Corporation is planning to invest Rs 1.4 lakh crore in petrochemicals, city gas and clean energy in the next five years as it looks to non-fuel businesses for growth.
NTPC has started Commercial Operation of third part capacity of 21 MW out of 56 MW Kawas Solar PV Project at Kawas, Gujarat, with effect from August 15, 2022.
Axis Bank has signed a MoU with Food Corporation of India to provide Ultima Salary package, a best-in-class salary account with exclusive benefits & features to all its employees.
Hero MotoCorp has reported over 2-fold jump in its consolidated net profit at Rs 585.58 crore for Q1FY23 as compared to Rs 256.46 crore for the same quarter in the previous year.