Daily Newsletter
NSE Intra-day chart (24 August 2021)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
DII Investments(Rs. Cr)
DateBuy ValueSale ValueNet Value
 
Market Commentary 25 August 2021
Benchmarks likely to open higher tracking firm global cues

 

Indian equity benchmarks traded in green terrain throughout the session and ended at record closing highs on Tuesday paced by gains in Metal, Basic Materials and Oil & Gas stocks amid positive global cues. Sentiments got a boost as Commerce and Industry Minister Piyush Goyal said foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22. Some optimism also came with Icra Ratings' report stated that with the easing of COVID-19-related restrictions by the states, the roots of the economic recovery deepened in July 2021. The report said the unlocking in the country has manifested itself in improving performance across various high frequency industrial and service sector indicators, mobility and toll collections in July 2021. Sentiments remained positive as Finance Minister Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways. She also said the asset monetisation does not involve selling of land and it is about monetising brownfield assets. Projects have been identified across sectors, with roads, railways and power being the top segments. Benchmarks extended their upward rally in late afternoon session, after SBI research report Ecowrap has showed that country's gross domestic product (GDP) is expected to grow at around 18.5 percent with an upward bias in the first quarter of the current financial year. Higher growth in the second quarter of 2022, or Q1 FY22 is mainly on account of a low base. Some support also came with IT industry body Nasscom's statement that India has the potential to become the world's second-largest cloud talent hub with the combined effort of government bodies, education and skilling organisations and technology providers. Traders overlooked the government's statement that summer-sown crop planting in India has been lagging as the country received below-normal rainfall, raising concerns about food grain production in Asia's third biggest economy. Also, a private report stated that India's volatile and below-normal monsoon rainfall may create challenges for inflation and economic growth in rural areas over the medium-term. Finally, the BSE Sensex rose 403.19 points or 0.73% to 55,958.98, while the CNX Nifty was up by 128.15 points or 0.78% to 16,624.60.   

 

The US markets settled higher on Tuesday, with the S&P 500 and the Nasdaq, posting new record closing highs, as traders shrugged off concerns about the Federal Reserve tapering its asset purchases amid continued optimism about the economic outlook. Hopes that the FDA's approval of thee Pfizer/BioNTech covid-19 vaccine could boost vaccination rates in the US and spur economic growth contributed as well to market's uptick. Meanwhile, investors awaited a highly-anticipated speech by Fed Chairman Jerome Powell during the virtual Jackson Hole Symposium on Friday for more clarity on the Fed's tapering timeline. On the economic data front, the Commerce Department released a report showing a rebound in US new home sales in the month of July. The report showed new home sales increased by 1.0 percent to an annual rate of 708,000 in July after slumping by 2.6 percent to an upwardly revised rate of 701,000 in June. Street had expected new home sales to jump by 3.6 percent to a rate of 700,000 from the 676,000 originally reported for the previous month.

 

Crude oil futures ended higher for second straight day on Tuesday as concerns about outlook for energy demand eased a bit amid signs of falling coronavirus infections in China, India and some other countries. The US drug regulator's decision to grant full approval to the Pfizer/BioNTech SE COVID-19 vaccine, and a subdued dollar too contributed to oil's uptick. Oil prices were also supported by a fire on an oil platform off Mexico on Sunday, which resulted in the shutdown of 125 wells in the field and likely reduce daily output of oil equivalents by 421,000 barrels. Crude oil futures for October surged $1.90 or 3 percent to settle $67.54 barrel on the New York Mercantile Exchange. October Brent crude gained $2.17 or 3.19 percent to settle at $70.54 a barrel on London's Intercontinental Exchange.

 

Indian rupee ended marginally higher against dollar on Tuesday, on persistent selling of the American currency by exporters. Traders remained positive as Commerce and Industry Minister Piyush Goyal said foreign direct investment into the country is on the rise, jumping to $12.1 billion in May this year. He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22. However, gains remain capped as some concern came with the government's statement that summer-sown crop planting in India has been lagging as the country received below-normal rainfall, raising concerns about food grain production in Asia's third biggest economy. On the global front; dollar was steady on Tuesday, holding near the previous session's five-day low, as markets appeared less concerned by the spread of the Delta variant. Finally, the rupee ended 74.19, stronger by 2 paise from its previous close of 74.22 on Monday.

 

The FIIs as per Tuesday's data were net seller in both equity and debt segment. In equity segment, the gross buying was of Rs 7960.18 crore against gross selling of Rs 9314.82 crore, while in the debt segment, the gross purchase was of Rs 212.21 crore against gross selling of Rs 351.91 crore. Besides, in the hybrid segment, the gross buying was of Rs 2.86 crore against gross selling of Rs 16.95 crore.

 

The US markets ended higher on Tuesday as positive U. vaccination news lifted sentiment, and as investors grew less worried the Federal Reserve was set to announce a timetable for tapering stimulus measures. Asian markets are trading mostly in green on Wednesday as optimism continued to drive US stocks, with the S&P 500 and Nasdaq reaching record highs overnight. Indian markets ended higher on Tuesday led by strong gains in metals and banking stocks amid positive global cues. Today, markets are likely to open higher tracking positive global cues. Positive comments by the World Health Organisation (WHO) chief scientist on the Covid-19 situation in India may result in a relief rally on the bourses. He said coronavirus in India may be entering some kind of stage of endemicity where there is low or moderate level of transmission going on. Market participants are likely to continue to take support with SBI research report Ecowrap stating that the country's gross domestic product (GDP) is expected to grow at around 18.5 per cent with an upward bias in the first quarter of the current financial year. Higher growth in the second quarter of 2022, or Q1 FY22 is mainly on account of a low base. Some support will come as Minister of State of Commerce and Industry Anupriya Patel said India is likely to record exports worth $46 billion to the ASEAN region. She noted that as one of the largest destinations for Indian exports, the Association of South East Asian Nations will be an important region for India in meeting the global export target of $400 billion in financial year 2021-22. Additionally, asserting that people will get some relief in the coming months, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said the government is very sensitive to the issue of rise in fuel prices. However, there may be come cautiousness as India recorded a massive spike of 51,016 new Covid-19 cases and 737 deaths in the past 24 hours, taking its tally to 32,511,370 and the death toll to 435,788. Meanwhile, Finance Secretary T V Somanathan said the government is considering to introduce insurance bonds as an alternative to bank guarantees. Besides, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts will be included in the Nifty indices from September 30. Oil & gas sector stocks will be in focus as India's crude oil production continued its declining trend, falling by over 3 per cent in July as state-owned ONGC produced less than the target. There will be some reaction in agriculture industry related stocks as the government relaxed norms for import of 12 lakh tonne of genetically modified crushed and de-oiled soya cake, used as livestock feed.

 

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

 

Index

Previous close

Support

Resistance

NSE Nifty

16,624.60

16,530.90

16,682.70

BSE Sensex

55,958.98

55,677.56

56,099.70

 

Nifty Top volumes

 

Stock

 

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Tata Motors

375.89

279.80

271.66

284.71

State Bank of India

190.12

417.60

410.95

421.50

Tata Steel

176.07

1404.65

1,381.10

1,424.10

Oil & Natural Gas Corporation

173.68

113.20

111.80

114.90

Hindalco Industries

150.50

420.85

414.35

425.55

 

  • CCI has imposed a penalty of Rs 200 crore on Maruti Suzuki India. 
  • TCS has unveiled that TCS MasterCraft, a suite of intelligent automation products that optimize IT service delivery, is now available on the Microsoft Azure Marketplace. 
  • Infosys has signed a new minimum three-year contract with UCAS, the admissions service for UK higher education. 
  • Wipro is planning to open a new delivery center in Sherwood, Arkansas.
News Analysis