Indian equity benchmarks ended
near day's high point on Wednesday, led by strong gains in Auto, Consumer
Discretionary and FMCG stocks amid positive opening in European stock
markets. After the initial uptick, the
benchmarks gradually inched higher as the session progressed and settled around
the day's high as foreign funds turning net buyers of domestic equities after a
long gap. FIIs turned net buyers after remaining net sellers in the capital
market for past many days, as they bought shares worth Rs 1,295.84 crore on
Tuesday. Traders also took some solace with Tarun Bajaj, Revenue Secretary,
Ministry of Finance, stating that simplification of Goods and Services Tax
(GST) law, rationalisation of rates, and removal of tax inversion are among the
priority for the government of India. He also said the government is looking
forward to having lower rates on fewer products, with indirect taxes
contributing 35-40 per cent of the tax revenue. Key gauges extended gains in
second half of trading session, taking support from a private report stating
that the Centre's production-linked incentive (PLI) scheme has the potential to
add nearly 4 per cent to GDP in terms of incremental revenues. The PLI scheme
aims to provide nearly Rs 2.4 lakh crore worth of incentives over the next five
years, with the lion's share going to electronics, auto components, and pharma.
Additional support also came with report stated that a rise in public
investment in the production-linked incentive schemes (PLI) has resulted in a
growth in hiring intent for July-September as 61 percent of companies surveyed
said they are keen to hire more. Traders overlooked the Centre for Monitoring
Indian Economy (CMIE) data showed the rate of unemployment in India rose to 7.8
per cent in June due to a sharp jump in unemployment in rural areas. Finally,
the BSE Sensex rose 616.62 points or 1.16% to 53,750.97 and the CNX Nifty was
up by 178.95 points or 1.13% to 15,989.80.
The US markets ended higher on
Wednesday after the minutes from the Federal Reserve's latest monetary policy
meeting showed the central bank was committed to bringing down inflation. The
minutes said the members of the central bank said there would be another 50 or
75-basis point move in the July meeting. The minutes also said that the
participants continued to anticipate that ongoing increases in the target range
for the federal funds would be appropriate to achieve the monetary policy
committee's objectives. Besides, Technology stocks had a good outing once
again, extending gains from the previous session. Technology stocks Apple,
Alphabet, Amazon, Cisco Systems and Meta Platforms moved higher. United Health,
Walmart, P&G, Travelers Companies, Visa, Merck and J&J also ended on
the positive side. However, Energy stocks drifted lower as energy prices pared
early gains and fell into the red amid worries about outlook for energy demand.
On the economic data front, Markit Economics said the S&P Global US
Composite PMI was revised higher to 52.3 in June from a preliminary reading of
51.2, down from 53.6 in May. The S&P Global US Services PMI was revised
higher to 52.7 in June from a preliminary score of 51.6, and down from 53.4 in
May, pointing to the weakest rise in activity in six months.
Crude oil futures ended lower on
Wednesday, magnifying their previous session's losses, on concerns about
outlook for energy demand due to a surge in Covid-19 cases in China and fears
over a possible recession. Further, the
dollar's continued strength amid expectations of a series of sharp interest
rate hikes by the Federal Reserve weighed as well on oil prices. Benchmark
crude oil futures for August delivery dropped $0.97 or 1 percent to settle at
$98.53 a barrel on the New York Mercantile Exchange. Brent crude for September
delivery fell $2.22 or 2.16 percent to settle at $100.55 (Provisional) a barrel
on London's Intercontinental Exchange.
Reversing previous session
drubbing, Indian rupee appreciated significantly against dollar on Wednesday,
owing to dollar sale by exporters and banks and positive domestic equities.
Some support came in as Reserve Bank of India (RBI) further liberalised norms
to boost inflows of foreign exchange, including doubling the borrowing limit
under the ECB route, amid the rupee falling against the US dollar. Additional
support came as FII's stood as net buyers after a long time. Foreign
institutional investors (FIIs) turned net buyers for the first time since May
30, buying shares worth Rs 1,295.84 crore on July 5, as per provisional data
available on the NSE. On the global front, pound steadied on Wednesday against
dollar as British Prime Minister Boris Johnson clung to power after key cabinet
members quit unexpectedly. Finally, the rupee ended at 78.94 (provisional),
stronger by 39 paisa from its previous close of 79.33 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in both equity and debt segments. In equity segment, the gross
buying was of Rs 7404.04 crore against gross selling of Rs 5271.03 crore, while
in the debt segment, the gross purchase was of Rs 551.45 crore against gross
selling of Rs 314.32 crore. Besides, in the hybrid segment, the gross buying
was of Rs 7.16 crore against gross selling of Rs 7.07 crore.
The US markets ended higher on
Wednesday as investors digested the recent FOMC minutes, which recalled their
tough stance on inflation. Asian markets are trading mostly in green on
Thursday tracing overnight gains on Wall Street. Indian markets climbed to
their highest closing levels in almost a month on Wednesday, backed by buying
across most sectors as a slump in crude oil prices aided the sentiment on Dalal
Street. Today, markets are likely to extend their previous session's rally with
gap-up opening mirroring firm global cues. Traders will be taking encouragement
as the Reserve Bank of India (RBI) announced a series of measures to attract
foreign flows in a bid to protect the local currency amid depleting foreign
exchange reserves. India's foreign exchange reserves have depleted by $38
billion to below $600 billion since the Russian invasion of Ukraine late
February. Traders may take note of report that Finance ministry released the
fourth instalment of revenue deficit grant of Rs 7,183 crore to 14 states for
the current fiscal. Meanwhile, the commerce ministry has recommended imposition
of anti-dumping duty on high-quality glass, used in construction,
refrigeration, solar energy and other industries, from Bangladesh and Thailand
to guard domestic players from cheap imports. However, traders may be concerned
as foreign institutional investors (FIIs) turned net sellers, offloading shares
worth Rs 330.13 crore on July 6, as per provisional data available on the NSE.
There may be some cautiousness as the head of the International Monetary Fund
(IMF) said the outlook for the global economy had darkened significantly since
April and she could not rule out a possible global recession next year given
the elevated risks. Edible oil industry stocks will be in focus with a private
report that edible oil industry has assured the government of further reduction
in retail prices by at least Rs 10-15 a litre in the next few weeks. The
assurance was given during a meeting that the industry had with senior
officials from the food ministry on various issues concerning the edible oil
industry. There will be some reaction in textile industry stocks as the finance
ministry extended the exemption of customs duty on raw cotton imports by a
month till October 31. On April 14, the ministry had given exemption from the
duty and Agriculture Infrastructure Development Cess (AIDC) till September 30,
2022, for import of cotton to lower prices in the domestic market. Coal
industry stocks will be in limelight as the Ministry of Coal on Wednesday said
that the coal production has gone up by 32.5 per cent approx in June this year
and the coal based power generation too has increased in the same period
registering growth of approximately 26 per cent.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,989.80
|
15,856.69
|
16,067.14
|
BSE
Sensex
|
53,750.97
|
53,323.07
|
53,999.10
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil and Natural Gas Corporation
|
590.92
|
121.25
|
119.56
|
123.21
|
Hindalco Industries
|
223.17
|
341.75
|
332.26
|
346.76
|
ITC
|
182.92
|
289.30
|
286.40
|
291.10
|
NTPC
|
159.29
|
139.70
|
136.54
|
142.44
|
Power Grid Corporation of India
|
144.02
|
211.50
|
208.41
|
214.36
|
NTPC has reported 61 per cent growth in its coal output at 42.40 lakh metric tonnes in April-June quarter from 26.40 lakh metric tonnes in the same period a year ago.
Dr. Reddy's Laboratories' wholly owned subsidiary -- Aurigene Discovery Technologies has collaborated with US-based EQRx.
Bajaj Finance's deposit book stood at around Rs 34,100 crore as of June 30, 2022 as compared to Rs 27,972 crore as of June 30, 2021, a YoY growth of 22%.
Tata Steel's consolidated steel output remained flat at 7.66 million tonnes during the April-June quarter of the current financial year FY23.