Continuing their rally for the
third consecutive day, Indian equity benchmarks settled at fresh record closing
highs on Friday propelled by foreign fund inflows and a firm trend in the
global markets. Intense buying in index heavyweights Mahindra & Mahindra,
Infosys and Indusind Bank further bolstered sentiment. After the initial
uptick, key gauges gradually inched higher as the day progressed as sentiments
got a boost with Reserve Bank Governor Shaktikanta Das' statement that the
Indian economy has made a solid recovery and is among the fastest-growing large
economies despite heightened uncertainties and formidable headwinds. He said
that financial stability is non-negotiable and all stakeholders in the financial
system must work to preserve this at all times. Some optimism also came with
report that increasing economic ties between India and the US would help boost
the country's exports to America. Markets extended gains in second half of
trading session as sentiments remained up-beat with S&P Global Ratings
Senior Economist (Asia Pacific) Vishrut Rana's statement that Indian economy is
expected to clock an average growth rate of 6.7 per cent till 2026-27 fiscal
driven by domestic consumption. Additional support also came with Reserve Bank
of India's (RBI) bi-annual Financial Stability Report stating that the Indian
banking system's asset quality strengthened to a decadal best, with the gross
non-performing assets (GNPAs) ratio falling to 3.9 per cent as of March 2023.
It said GNPAs of the scheduled commercial banks are expected to improve further
to 3.6 per cent by March 2024, as per the baseline scenario. Traders got
support after Fitch Ratings said that India's resilient growth outlook will
offset a slowdown in overseas markets for the country's corporates and easing
input cost pressure will help widen their profit margins. Earlier this month,
Fitch had raised India's economic growth forecast to 6.3 per cent for the
current fiscal year 2023-24 from the 6 per cent it had predicted previously.
Finally, the BSE Sensex rose 803.14 points or 1.26% to 64,718.56 and the CNX
Nifty was up by 216.95 points or 1.14% to 19,189.05.
The US markets ended higher on
Friday, with the tech-heavy Nasdaq leading the advance, following the release
of a Commerce Department report showing an unexpected slowdown in the annual
rate of consumer price growth in the month of May. The report said the annual
rate of consumer price growth slowed to 3.8 percent in May from 4.3 percent in
April. The slowdown surprised economists, who had expected growth to accelerate
to 4.6 percent. The annual rate of growth by core consumer prices, which
exclude food and energy prices, also slowed to 4.6 percent in May from 4.7
percent in April. Street had expected the pace of growth to be unchanged. The
readings on consumer price inflation, which are said to be preferred by the
Federal Reserve, were included in the Commerce Department's report on personal
income and spending. On the sectoral front, airline stocks showed a substantial
move to the upside on the day, driving the NYSE Arca Airline Index up by 2.0
percent to its best closing level in over a year. Significant strength was also
visible among gold stocks, as reflected by the 1.8 percent gain posted by the
NYSE Arca Gold Bugs Index. The strength in the gold sector came amid an
increase by the price of the precious metal, with gold for August delivery
climbing $11.50 to $1,929.40 an ounce. Semiconductor, retail and oil service
stocks also saw considerable strength on the day, moving higher along with most
of the other major sectors.
Magnifying previous session's
gains, crude oil futures ended higher on Friday as data showing a fall in U.S.
crude stocks outweighed demand worries. Lackluster data on China's factory
activity also spurred hopes of more policy stimulus. The data showed that
manufacturing activity in China shrank for a third straight month in June,
albeit at a slower pace. The manufacturing PMI rose to 49.0 in June from 48.8 a
month ago -matching expectations. The non-manufacturing sector continued to
expand in June, with the corresponding index falling to 53.2 from 54.5 in the
previous month. Benchmark crude oil futures for August delivery rose $0.35 or
about 0.50 percent to settle at $70.21 a barrel on the New York Mercantile
Exchange. Brent crude for August delivery gained $0.59 or 0.79 percent to
settle at $74.93 a barrel on London's Intercontinental Exchange.
Rupee settled flat against dollar
on Friday despite rally in the domestic equities. Besides, FII inflows into
equities failed to cheer the rupee. Traders overlooked Reserve Bank Governor
Shaktikanta Das' statement that the Indian economy has made a solid recovery
and is among the fastest-growing large economies despite heightened uncertainties
and formidable headwinds. He said that financial stability is non-negotiable
and all stakeholders in the financial system must work to preserve this at all
times. On the global front, Russian rouble slumped to a more than 15-month low
against the dollar and euro on Friday, weighed down by domestic political risk
concerns after an aborted armed mutiny over the weekend and lacking any support
drivers. Finally, the rupee ended flat with previous close of 82.03 on
Wednesday.
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 24851.77 crore against gross selling of Rs 10047.90 crore,
while in the debt segment, the gross purchase was of Rs 12337.71 crore against
gross selling of Rs 508.54 crore. Besides, in the hybrid segment, the gross
buying was of Rs 2.10 crore against gross selling of Rs 47.01 crore.
The US markets ended in green on
Friday as investors closed the books on a solid quarter, with data showing
progress in the Federal Reserve's efforts to tame inflation. Asian markets are
trading mostly higher on Monday as investors digest a slew of manufacturing
activity reports from the region. Indian markets ended with solid gains on
Friday with robust foreign fund inflows and strong economic data from the U.S.
helped ease recession worries. Today, start of the week is likely to be
optimistic tracking positive global cues. Foreign fund inflows likely to aid
domestic sentiments. According to the provisional data available on the NSE,
foreign institutional investors (FII) net bought shares worth net Rs 6,397.13
crore on June 30. Sentiments will get a boost as the India Meteorological
Department (IMD) in its forecast for July said most areas in central India,
adjoining south peninsula, eastern India, and some parts of Northeast and
Northwest India will receive normal rainfall during the month. Some support
will come as the Ministry of Finance said India's gross GST revenue collection
in June stood at Rs 1,61,497 crore, registering a 12 per cent year-on-year
rise. Investors will be looking ahead to the Manufacturing PMI data for more
cues. However, some cautiousness may come as data updated by Reserve Bank of
India (RBI) showed that India's forex reserves fell $2.9 billion and stood at
$593.2 billion as of June 23. Traders may take note of the government data
showing that India's core sector grew 4.3% in May, unchanged from April as the
drag from slower global growth dented the gains from strong government capital
expenditure that lifted key sectors like cement and steel. Besides, the central
government's fiscal deficit stood at Rs 2.1 lakh crore or 11.8 per cent of the
full-year budget estimates at May-end 2023. Meanwhile, in order to push capital
expenditure by central ministries, the Finance Ministry has extended the
relaxed norms on capex in excess of Rs 500 crore to the second quarter of this
fiscal. Public sector banking stocks will be in focus as Finance Minister
Nirmala Sitharaman said the public sector banks' (PSBs) profit in the last nine
years has tripled to Rs 1.04 lakh crore due to initiatives taken by the
government and underlined the need for continuing the momentum to fuel economy.
The net profit of PSBs has almost tripled to Rs 1.04 lakh crore in FY23 from Rs
36,270 crore in FY2014.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,189.05
|
19,075.20
|
19,252.30
|
BSE
Sensex
|
64,718.56
|
64,268.48
|
64,968.62
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
267.42
|
112.00
|
110.86
|
112.66
|
HDFC
Bank
|
203.50
|
1700.75
|
1686.40
|
1711.95
|
ICICI
Bank
|
138.43
|
934.00
|
929.04
|
940.59
|
Power
Grid Corporation of India
|
132.45
|
254.00
|
250.24
|
258.74
|
Infosys
|
128.22
|
1337.85
|
1315.24
|
1349.69
|
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