Rising for fourth consecutive
day, Indian equity benchmarks ended Wednesday's session with gains of over a
percent, led by strong buying in IT, TECK and Metal stocks amid positive global
market sentiments. Key gauges made positive start and stayed in green for whole
day, as traders took encouragement with Finance ministry's statement that the
economy is on course to achieve projected 8-8.5 per cent growth based on
high-frequency indicators for the first quarter of the current fiscal. Traders
also found some solace from Economic Affairs Secretary Ajay Seth's statement
that the rupee is managed well and there is nothing to be 'overtly' worried
about the depreciation in the domestic currency against the US dollar.
Sustained buying by FIIs also aided the sentiment in the markets. Foreign
Institutional Investors (FIIs) were net buyers for the second day running on
Dalal Street. FIIs pumped in Rs 976 crore on July 19. Markets extended gains in
afternoon deals, taking support from the commerce and industry ministry stating
that foreign direct investment (FDI) inflows in the research and development
sector have increased to $343.64 million in 2021 against $55.77 million in
2020. Traders also took a note of Rajya Sabha informed that cases of frauds on
public sector banks have come down by about 50 per cent in FY'22 to 2,369 as
against 4,680 recorded in the previous fiscal. The amount involved in the
frauds too declined to Rs 3,204 crore from Rs 7,306 crore in 2020-21. Market
participants overlooked the Securities and Exchange Board of India (Sebi) in
its latest data showed that investment in the Indian capital markets through
participatory notes (P-notes) declined to Rs 80,092 crore till June-end, making
it the lowest level in 20 months, on aggressive rate hike by the US Federal
Reserve. Finally, the BSE Sensex rose 629.91 points or 1.15% to 55,397.53 and
the CNX Nifty was up by 180.30 points or 1.10% to 16,520.85.
The US markets ended higher on
Wednesday, fueled by a rally in tech stocks. Wednesday marked the highest
closing level for the Nasdaq since June 8 - and the highest since June 9 for
the Dow and the S&P 500. Those moves follow Tuesday's rally as investors,
betting that markets have finally found a bottom, shifted into more risky
assets such as tech stocks. The jump by the Nasdaq reflected strong among tech
stocks, which came amid a positive reaction to earnings news from Netflix
(NFLX). Shares of Netflix surged by 7.4 percent to a three-month closing high
after the streaming giant reported better than expected second quarter earnings
and a smaller than expected subscriber loss. Semiconductor stocks also turned
in a strong performance on the day, with the Philadelphia Semiconductor Index
spiking by 2.5 percent. Significant strength was also visible among computer
hardware stocks, as reflected by the 1.7 percent advance by the NYSE Arca
Computer Hardware Index. On the economic data front, a report released by the
National Association of Realtors (NAR) showed existing home sales tumbled by
much more than expected in the month of June. NAR said existing home sales
plunged by 5.4 percent to an annual rate of 5.12 million in June after slumping
by 3.4 percent to an annual rate of 5.41 million in May. Street had expected
existing home sales to decrease by 0.6 percent to a rate of 5.38 million. Existing
home sales declined for the fifth consecutive month, falling to their lowest
level since June of 2020.
Crude oil futures ended lower on
Wednesday after US government data showed lower gasoline demand during the peak
summer driving season. Data showed US gasoline inventories rose 3.5 million
barrels last week as against an expected increase of 71,000 barrels. Product
supplied of gasoline - a proxy for demand - was about 8.5 million barrels per
day, or about 7.6% lower than the same time a year ago. Besides, worries about
interest rate hikes by central banks weighed as well on oil prices. However,
downside remained capped as data from US Energy Information Administration
(EIA) showed crude inventories in the US dropped by 446,000 barrels last week. Benchmark
crude oil futures for August delivery fell $1.96 or 1.9 percent to settle at
$102.26 a barrel on the New York Mercantile Exchange. Brent crude for September
delivery lost $0.43 or 0.38 percent to settle at $106.92 a barrel on London's
Intercontinental Exchange.
Indian rupee ended considerably
weaker on Wednesday amid strong dollar demand from importers amid high crude oil
prices. Traders were worried even after economic Affairs Secretary Ajay Seth
stated that the rupee is managed well and there is nothing to be 'overtly'
worried about the depreciation in the domestic currency against the US dollar.
Meanwhile, according to private report India's central bank is prepared to sell
a sixth of its foreign exchange reserves to defend the rupee against a rapid
depreciation after it plumbed record lows in recent weeks. On the global front,
Sterling steadied on Wednesday against the dollar as data showed British
inflation climbed to its highest rate in 40 years, but only slightly above
forecast. Finally, the rupee ended at 80.05 (provisional), weaker by 13 paisa
from its previous close of 79.92 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity segment, while they were sellers in debt segment. In
equity segment, the gross buying was of Rs 6206.60 crore against gross selling
of Rs 5147.13 crore, while in the debt segment, the gross purchase was of Rs 129.82
crore against gross selling of Rs 541.96 crore. Besides, in the hybrid segment,
the gross buying was of Rs 1.64 crore against gross selling of Rs 12.96 crore.
The US markets ended higher on
Wednesday as investors flocked to buy tech stocks. Asian markets are trading
mostly in red on Thursday amid concerns about steep hikes in COVID-era interest
rates and their impact on economic growth. Indian markets ended higher for the
fourth day straight on Wednesday as bulls asserted control on Dalal Street and
index heavyweights such as Reliance Industries surged. Today, markets are
likely to get flat-to-positive start amid mixed global cues. Traders will be
taking encouragement with former Niti Aayog Vice Chairman Arvind Panagariya's
statement that Indian economy, which has grown fairly rapidly in the last 17
years, will grow at 7-8 per cent in the next couple of decades. He noted that
the country's economy grew 7.4 per cent between 2014-15 to 2019-20. Some
support will come with a private report that private equity players and venture
capital funds have pumped in 28 per cent more money into domestic companies,
mostly into start-ups, totalling $34.1 billion in the first half of the year.
Some optimism may also come as Foreign Institutional Investors (FII) were net
buyers for the third day straight on Dalal Street. FIIs pumped in Rs 1,780
crore into domestic stocks. Traders may take note of report that chief economic
advisor (CEA) V Anantha Nageswaran said the depreciation of the rupee against
the greenback has been lower than that of other major global currencies, such
as the euro, the British pound and the Japanese yen. Meanwhile, minister of
consumer affairs, food, and public distribution Piyush Goyal has said that the
Centre has no plans to subsidise the export of pulses. Besides, Karnataka Chief
Minister Basavaraj Bommai said the Centre has cleared GST dues to the tune of
Rs 8,800 crore and the rest will be paid soon. There will be some buzz in metal
stocks as Union Minister Faggan Singh Kulaste said the exports of finished
steel from India jumped over 25 per cent to 13.49 million tonne (MT) in
2021-22. During the preceding 2020-21 fiscal, the exports stood at 10.78 MT.
sugar stocks will be in focus with a private report that India may allow sugar
mills to export more than previously permitted to help them prevent contract
defaults, according to people familiar with the matter. A slew of corporate
earnings will guide investor sentiments in today's trade as companies like
Hindustan Zinc, PVR, RBL Bank, and JSW Energy report their June quarter 2022
(Q1FY23) results.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,520.85
|
16,478.54
|
16,575.59
|
BSE
Sensex
|
55,397.53
|
55,253.76
|
55,585.79
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil and Natural Gas Corporation
|
603.17
|
132.55
|
130.96
|
135.36
|
State Bank of India
|
192.80
|
508.60
|
502.46
|
512.66
|
Tata Motors
|
171.54
|
453.45
|
449.89
|
458.89
|
ITC
|
157.89
|
298.20
|
294.70
|
300.60
|
Wipro
|
126.18
|
412.10
|
406.96
|
417.36
|
Hindustan Unilever has reported a rise of 11.06% in its net profit at Rs 2,289 crore for Q1FY23 as compared to Rs 2,061 crore for the same quarter in the previous year.
Maruti Suzuki India has rolled out its game changer SUV The Grand Vitara.
Bajaj Finserv's subsidiary company -- Bajaj Allianz Life Insurance has entered into strategic partnership with DBS Bank India to offer a wide array of life insurance solutions to the bank's 3M customers.
Grasim Industries has received board's approval for foray into B2B e-commerce platform for the Building Materials segment with an investment of around Rs 2,000 crore over the next 5 years.