Extending
their winning streak for third straight session, Indian equity benchmarks ended
the Thursday's trade at their record closing high levels with frontline gauges
settling above their crucial 53,100 (Sensex) and 15,900 (Nifty) levels for the
first time led by buying in realty and IT stocks. Sentiments remained upbeat
throughout the day with key gauges making a positive start after Crisil's
latest report stating that the Reserve Bank of India's (RBI) insistence on
companies opening current accounts with banks is among the factors that has
helped large lenders such as HDFC Bank, ICICI Bank and SBI raise their shares
of the competitive corporate banking market in 2020. It stated apart from the
RBI rules, the government's mega merger to reduce the number of state-owned
banks has also helped in the trend. Market participants also remained
optimistic on report that India's new Petroleum Minister Hardeep Singh Puri has
started dialling oil-producing nations to impress upon them for a need to make
prices affordable for consumers. Puri, who last week called Energy Minister of
Qatar, dialled his counterpart in the UAE, Sultan Ahmed Al Jaber. Markets
extended gains in second half of the trade as traders continued to remain
upbeat with private report stating IT spending in the country is expected to
grow at 8 per cent to $92.7 billion in 2021. The growth at 8 percent is a shade
less than the world average of 8.6 per cent and global spends on information
technology are estimated to come at $4.2 trillion. Some support also came with
ICRA Ratings' survey stating that around 42 percent of non-banking financial
companies (NBFCs) expect a growth of more than 15 per cent in their asset under
management (AUM) in fiscal 2021-22. It said NBFCs growth expectations have
moderated vis-a-vis the expectations six months earlier. Traders shrugged off
private report that even though the second wave has ebbed, the increased
presence of the Delta variant and the subsequent mutations of the coronavirus
makes the third wave a real risk for the country. Finally, the BSE Sensex rose
254.80 points or 0.48% to 53,158.85, while the CNX Nifty was up by 70.25 points
or 0.44% to 15,924.20.
The US markets ended mostly lower
on Thursday on renewed concerns about the global economic outlook after a
report from China's National Bureau of Statistics showed Chinese GDP growth
slowed by more than expected in the second quarter. The report showed Chinese
GDP grew 7.9 percent year-on-year in the second quarter, shy of expectations
for a gain of 8.1 percent and down sharply from 18.3 percent in the three
months prior. Indications some central banks around the world are considering
tightening monetary policy much sooner than the Federal Reserve may have added
to worries about the global economy. Traders were also digesting a slew of US
economic data, including a report from the Federal Reserve showing industrial
production increased by less than expected in the month of June. The Fed said
industrial production rose by 0.4 percent in June after climbing by a
downwardly revised 0.7 percent in May. Street had expected industrial
production to increase by 0.7 percent. The weaker than expected growth was
partly due to a 0.1 percent dip in manufacturing output, which came as an
ongoing shortage of semiconductors contributed to a 6.6 percent nosedive in the
production of motor vehicles and parts. The Labor Department also released a
report showing first-time claims for unemployment benefits decreased in line
with street estimates in the week ended July 10th. The report said initial
jobless claims fell to 360,000, a decrease of 26,000 from the previous week's
revised level of 386,000. Street had expected jobless claims to dip to 360,000
from the 373,000 originally reported for the previous week.
Crude oil futures ended lower on
Thursday, extending their previous session losses, amid rising concerns about
outlook for energy demand and likely excess supply in the market. There are
concerns that a compromise deal between leading OPEC producers could result in
a sharp increase in oil supply into an extremely tight market. Worries about
demand have resurfaced due to the spread of the Delta variant of the
coronavirus and possibility of fresh economic restrictions in several places
across the world. Crude oil futures for August fell $1.48 or 2 percent to
settle at $71.65 barrel on the New York Mercantile Exchange. September Brent
crude dropped $1.45 or 2 percent to settle at $73.31 a barrel on London's
Intercontinental Exchange.
Indian rupee ended higher against
dollar on Thursday as banks and exporters continued to sell the US currency
amid persistent capital inflows. Besides, healthy gains in domestic equity
markets also supported the rupee. Sentiments remained positive with private
report stated that IT spending in the country is expected to grow at 8 per cent
to $92.7 billion in 2021. The growth at 8 percent is a shade less than the
world average of 8.6 per cent and global spends on information technology are
estimated to come at $4.2 trillion. Traders took note of report that garment
exporters will continue to get a rebate on central and state taxes on their
outward shipments as the government approved extension of RoSCTL scheme till
March 2024. On the global front, sterling retreated further against the dollar
and euro on Thursday, shrugging off another set of stronger economic data and
focusing on the impending end of activity curbs even as COVID-19 infection
rates climbed. Finally, the rupee ended 74.54, stronger by 5 paise from its
previous close of 74.59 on Wednesday.
The FIIs as per Thursday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 5248.12 crore against gross selling of Rs 6472.65 crore, while
in the debt segment, the gross purchase was of Rs 99.47 crore with gross sales
of Rs 184.22 crore. Besides, in the hybrid segment, the gross buying was of Rs
11.01 crore against gross selling of Rs 17.13 crore.
The US markets ended mostly lower
on Thursday as Federal Reserve Chair Jerome Powell's persistent dovishness
raises concern about the sustainability of the economic recovery. Asian markets
are trading mostly in red on Friday as investors await the Bank of Japan's
monetary policy statement. Indian markets ended at record closing highs
Thursday after boosted by strong gains in IT and realty stocks. Today, the
markets are likely to make cautious start amid weakness in global peers. Rise
in coronavirus cases likely to dampen sentiments in the markets. India has
recorded a spike of 39,072 fresh Covid-19 cases in the last 24 hours, taking
the total caseload to 31,025,875, according to Worldometer. The death count
increased to 412,563 with 544 new fatalities, the data showed. There will be
some cautiousness with a private survey showing that the second Covid wave,
along with overall economic downturn brought about by the pandemic, seems to
have hit the consumers and general public hard with as many as 79 per cent of
them believing their household earnings will decline in the current financial
year (FY22). However, some respite may come later in the day with the Reserve
Bank of India's (RBI) report that the tapering of the second wave, coupled with
an aggressive vaccination push, has brightened near-term prospects for the
Indian economy, and the Indian economy may have grown 22.1 per cent in the
April-June quarter. Some support may come as the data released by the Commerce
Ministry showed that the country's exports rose by 48.34 per cent to $32.5
billion on account of healthy growth in shipments of petroleum products, gems
and jewellery, and chemicals, leather and marine goods. Traders may take note
of RBI Governor Shaktikanta Das' statement that financial inclusion will
continue to be a policy priority for the central to make the post-pandemic
recovery more equitable and sustainable. Das said the Reserve Bank of India
will very soon be coming out with the first financial inclusion index, which
will assess progress in terms of access, usage and quality. Banking stocks will
be in focus as RBI data showed that bank credit grew by 6 per cent to Rs 109.31
lakh crore and deposits increased by 9.76 per cent to Rs 154.51 lakh crore in
the fortnight ended July 2. IT stocks will be in limelight as markets would
react to results by Wipro, Cyient, Tata Elxsi and L&T Infotech in early
trade. Meanwhile, Tatva Chintan Pharma Chem will launch its Rs 500-crore IPO at
a price band of Rs 1073-1083 per share. The issue will open on July 16 and
close on July 20, 2021. There will be lots of earnings announcements too, to
keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,924.20
|
15,868.69
|
15,966.04
|
BSE
Sensex
|
53,158.85
|
52,982.82
|
53,300.51
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Wipro
|
310.66
|
575.90
|
563.39
|
584.04
|
ITC
|
288.52
|
206.25
|
203.26
|
208.86
|
Oil & Natural Gas Corporation
|
285.89
|
116.90
|
115.60
|
118.80
|
Tata Motors
|
236.17
|
310.25
|
307.61
|
312.86
|
HCL Technologies
|
127.01
|
1039.75
|
1,002.86
|
1,064.56
|
TCS is planning to expand its operations in Arizona, investing more than $300 million by 2026 and hiring more than 220 employees by 2023.
Tata Motors has launched a new brand XPRES exclusively for the fleet customers.
Wipro has reported 35.65% rise in its consolidated net profit attributable to equity holders of Rs 3242.60 crore for Q1FY22 as against net profit of Rs 2390.40 crore for Q1FY21.
Power Grid Corporation has received approval from CERC for incorporation of a wholly owned subsidiary to undertake telecommunications and digital technology businesses.