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
|
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