Indian equity
benchmarks traded in green throughout the session and ended over one and half
percent higher on Thursday, tracking gains in index majors Bajaj Finserv,
Larsen & Toubro and HDFC amid a positive trend in global markets.
Benchmarks made gap-up start, as sentiments got a boost with the commerce and
industry ministry's statement that foreign direct investment equity inflow into
the country more than doubled to $20.42 billion during the April-July period of
the current fiscal. Total Foreign Direct Investment (FDI) inflow rose to $27.37
billion during the first four months of 2021-22. Domestic sentiments remain
buoyed with Reserve Bank of India (RBI) Governor Shaktikanta Das' statement that
the world is witnessing initial signs of recovery from the impact of
coronavirus (Covid-19) pandemic. He said the Covid pandemic has provided a new
impetus to technology-driven companies such as fintech, edtech and healthtech
which are likely to see increased funding activity in the coming years.
Benchmarks continued their upward rally in late afternoon session, taking
support from Commerce and Industry Minister Piyush Goyal's statement that India
and the UAE have formally launched negotiations for a free trade agreement and
the first round of talks will begin from September 23 with an aim to conclude
it by end-December, a move aimed at boosting trade and investments between the
countries. Traders also took a note of Union Minister Nitin Gadkari's statement
that India is committed to an eminently achievable clean energy-based economy,
and added that the country will soon have a policy for flex-fuel engines.
Meanwhile, Commerce and Industry Minister Piyush Goyal launched the National
Single Window System for businesses and said the portal will usher in freedom
from the legacy of running to government offices for approvals and
registrations. Finally, the BSE Sensex rose 958.03 points or 1.63% to 59,885.36
and the CNX Nifty was up by 276.30 points or 1.57% to 17,822.95.
The US markets ended higher on
Thursday, extending their previous session's gains, as traders largely shrugged
off a report from the Labor Department showing first-time claims for US
unemployment benefits unexpectedly increased for the second straight week in
the week ended September 18th. The Labor Department said initial jobless claims
rose to 351,000, an increase of 16,000 from the previous week's revised level
of 335,000. With the uptick, jobless claims climbed further off the
pandemic-era low of 312,000 set in the week ended September 4th. The continued
rebound surprised participants, who had expected jobless claims to dip to
320,000 from the 332,000 originally reported for the previous month. Traders
also continue to digest the Federal Reserve's monetary policy announcement on
Wednesday, when the central bank signaled tapering asset purchases could be
coming soon. Besides, the strength on markets also came amid easing concerns
about Evergrande after the Chinese property developer reached a settlement with
mainland bondholders. The People's Bank of China's infusion of massive capital
into the country's banking system has also eased concerns about a potential
default by Evegrande.
Crude oil futures ended higher on
Thursday amid prospects for a surge in energy demand and tighter supplies due
to the slow recovery in the restoration of output in the Gulf of Mexico
following the disruptions caused by recent hurricanes. Further, recent data
showing a drop in US crude stockpiles in the week ended September 17 also
continued to support oil prices. OPEC and allies, collectively known as OPEC+,
will meet on October 4. Iraq's oil minister said on Wednesday that the group
was working to keep crude prices close to $70 per barrel amid a recovery in the
global economy. Benchmark Crude oil futures October delivery rose $1.07 or 1.5
percent to settle at $73.30 barrel on the New York Mercantile Exchange. Brent
crude for November delivery gained $0.97 or 1.27 percent to settle at $77.16 a
barrel on London's Intercontinental Exchange.
Reversing previous session
drubbing, Indian rupee appreciated significantly against dollar on Thursday
after US Federal Reserve hinted that it may begin scaling down asset purchases
in November and complete the process by mid-2022. Sentiments were also upbeat
as foreign direct investment (FDI) equity inflows into the country grew by 112
per cent in the first four months (April-July) of 2021-22 ($20.42 billion)
compared to the year ago period ($9.61 billion). On the global front, dollar
eased slightly from a one-month high on Thursday, after the Federal Reserve set
the stage for rate hikes next year but left enough breathing room to slow
things down if necessary, while sterling traded firmly ahead of a Bank of
England meeting. Finally, the rupee ended 73.64, stronger by 23 paise from its
previous close of 73.87 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity segment, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 7613.94 crore against gross selling of Rs
9189.26 crore, while in the debt segment, the gross purchase was of Rs 1123.93
crore with gross sales of Rs 797.81 crore. Besides, in the hybrid segment, the
gross buying was of Rs 9.01 crore against gross selling of Rs 21.89 crore.
The US markets ended higher on
Thursday as investors brushed off concerns over the Federal Reserve's tapering
plans. Asian markets are trading mostly in green on Friday as investors
continue to watch developments surrounding China Evergrande Group. Indian
markets ended higher on Thursday as gains were propelled by strength across
most sectors, a day after the outcome of the Federal Reserve policy review met
Street expectations. Today, markets are likely to make positive start following
firm global cues. Some support will come as union Minister Piyush Goyal said
the commerce ministry is trying to ease norms for Special Economic Zones (SEZs)
and make it simpler for units to exit these areas. The ministry is also looking
at ways for partial de-recognition of existing SEZs so that areas which have no
more demand can be used for industrial or other purposes. Traders may take note
of report that Union Commerce Minister Piyush Goyal asked bankers to be more
liberal on aspects like exchange rates while serving the exporters segment. He
also sought a similar liberal outlook on the issue of penal interest rates and
insistence on ratings while granting a loan, saying payments from overseas
markets have been impacted because of the pandemic. However, traders may be
concerned as India recorded a spike of 31,458 new Covid-19 cases in the past 24
hours. The country also witnessed 319 deaths, taking the death toll to 446,399.
So far, India has recorded 33,593,492 corona cases in total. Delhi reported 48
Covid-19 cases and no fatality. Kerala recorded 19,682 new Covid-19 cases and
Maharashtra 3,320 cases. There may be some cautiousness as the Centre for
Monitoring Indian Economy (CMIE) said the recovery in employment after the
pandemic-induced disruptions has been uneven, with job losses being concentrated
among salaried employees and entrepreneurs. Banking stocks will be in focus as
RBI data showed Bank deposits grew 11.9 per cent year-on-year during 2020-21
compared to 8.8 per cent in 2019-20 on the back of high growth in current
account and savings account (CASA) deposits. The share of CASA deposits
increased to 43.7 per cent in March 2021 compared to 41.7 per cent a year ago.
There will be some reaction in insurance industry stocks as a senior Irdai
member said Insurance Regulatory and Development Authority of India (Irdai) has
no plans to bring standard products for cyber liability insurance policy as of
now. Meanwhile, Sansera Engineering shares are set to make Dalal Street debut
on September 24, Friday. The Rs 1,283 crore public issue, which was opened
during September 14-16, was subscribed 11.47 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,822.95
|
17,698.36
|
17,895.71
|
BSE
Sensex
|
59,885.36
|
59,433.25
|
60,147.35
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
527.01
|
321.50
|
315.14
|
325.94
|
Coal India
|
313.99
|
167.35
|
163.64
|
170.54
|
Bharti Airtel
|
260.09
|
726.80
|
719.96
|
736.86
|
ITC
|
217.91
|
242.50
|
240.94
|
244.84
|
State Bank of India
|
205.16
|
449.80
|
444.19
|
453.29
|
Adani Ports and Special Economic Zone has signed the appropriate transaction documents and simultaneously completed the acquisition of 10.4 per cent stake of Gangavaram Port from Government of Andhra Pradesh.
Tejas Networks has been selected by Bharti Airtel to enhance Airtel's optical network capacity in key metropolitan markets.
HCL Technologies has selected RISE with SAP offering to further modernize its enterprise digital landscape.
Reliance Industries' telecom arm -- Reliance Jio Infocomm has added 65,18,786 customers in July 2021.