Bulls make
strong comeback on Dalal Street on Thursday snapping three days losing streak
as traders' opted bargain hunting in blue chip stocks. Markets started the day
with jubilation and key gauges breaches their crucial levels one after other as
signs of a strong corporate earnings season and expectations that the central
banks will stick to a dovish stance, at least in the near-term, lifted demand
for risky equities. Sentiments remained optimistic through the day with report
that Finance Minister Nirmala Sitharaman has sought Parliament nod to spend a
net additional Rs 23,675 crore, including Rs 17,000 crore for the health
ministry, in the current financial year. As per the first batch of supplementary
demands for grants tabled in the Lok Sabha by Sitharaman, although the gross
additional expenditure is over Rs 1.87 trillion in 2021-22, the actual cash
outgo will only be Rs 23,674.81 crore as the remaining spending will be met
through savings and higher receipts and recoveries. Markets extended gains in
last leg of trade as traders took note of report that in order to bring more
discipline, transparency, and accountability into the corporate insolvency
process, resolution professionals (RPs) will be required to inform the
adjudicating authority about avoidance transactions of a corporate debtor,
according to the amended Insolvency and Bankruptcy Board of India (IBBI)
Regulations, 2016. Market participants overlooked report that increasing
commodity prices forced the government's crude oil import bill to swell by a
massive 190.6% on-year basis in the first quarter to reach $24.7 billion.
India's crude oil import value during the quarter stood at 51 million tonne, up
14.7% from the previous year. Finally, the BSE Sensex rose 638.70 points or
1.22% to 52,837.21, while the CNX Nifty was up by 191.95 points or 1.23% to
15,824.05.
The US markets ended higher on
Thursday despite an unexpected jump in jobless claims that resurfaced some
concerns about the economy and sent bond yields lower. A report released by the
Labor Department showed an unexpected increase in first-time claims for US
unemployment benefits in the week ended July 17th. The Labor Department said
initial jobless claims climbed to 419,000, an increase of 51,000 from the
previous week's revised level of 368,000. The rebound surprised participants,
who had expected jobless claims to edge down to 350,000 from the 360,000
originally reported for the previous week. The report showed the less volatile
four-week moving average also crept up to 385,250, an increase of 750 from the
previous week's revised average of 384,500. Meanwhile, a separate report from
the National Association of Realtors (NAR) showing existing home sales
rebounded in the month of June following four straight monthly declines. NAR
said existing home sales jumped by 1.4 percent to an annual rate of 5.86
million in June after slumping by 1.2 percent to a revised rate of 5.78 million
in May. Street had expected existing home sales to surge up by 1.7 percent to a
rate of 5.90 million from the 5.80 million originally reported for the previous
month. Besides, the modestly higher close on markets reflected recent upward
momentum, as stocks continued to recover from the sell-off on Monday. The
advance seen over the past few days more than offset the sell-off to start the
week, although the major averages remain below the record closing highs set
last Monday.
Crude oil futures ended higher
for third straight day on Thursday on expectations of tighter supplies through
2021 as economies recover from the coronavirus crisis. Oil prices continued to
rise despite recent data from Energy Information Administration (EIA) showing a
jump in US crude inventories in the week ended July 17. Report showing strong
gasoline demand and a rebound in distillate fuels supported the uptick in oil
prices. Gasoline stockpiles dropped by 100,000 barrels last week, while
distillate stockpiles declined by about 1.3 million barrels. Crude oil futures
for September rose $1.61 or about 2.3 percent to settle at $71.91 barrel on the
New York Mercantile Exchange. September Brent crude surged $1.56 or 2.2 percent
to settle at $73.79 a barrel on London's Intercontinental Exchange.
Continuing previous gains, Indian
rupee ended higher against dollar on Thursday due to fresh selling of the
American currency by banks and exporters. This was the second consecutive
session when the rupee was traded higher against dollar. Traders took a note of
report that Insolvency and Bankruptcy Board of India (IBBI) has amended
regulations for corporate insolvency proceedings wherein a resolution
professional will be required to provide details about his or her opinion about
avoidance transactions pertaining to a corporate debtor. IBBI has amended the
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for
Corporate Persons) Regulations. Healthy gains in the domestic equity markets
also supported rupee. On the global front, euro traded just off 3-1/2 month
lows versus the dollar on Thursday before a potentially momentous meeting of
the ECB. Finally, the rupee ended 74.46, stronger by 15 paise from its previous
close of 74.61 on Tuesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 4250.44 crore against gross selling of Rs 7032.82 crore, while
in the debt segment, the gross purchase was of Rs 431.81 crore with gross sales
of Rs 1034.24 crore. Besides, in the hybrid segment, the gross buying was of Rs
68.78 crore against gross selling of Rs 78.74 crore.
The US markets ended higher on
Thursday as investors digested negative economic data reflecting the country's
struggle to move past the COVID-19 pandemic. Asian markets are trading mostly
lower on Friday as investors monitor Chinese tech stocks in Hong Kong after
regulatory concerns resurfaced. Indian markets ended higher Thursday led by
strong gains across the board amid positive global cues. Today, the markets are
likely to make cautious start amid mixed global cues. Some support will come as
Information and Broadcasting Minister Anurag Thakur said the Union Cabinet has
approved Rs 6,322-crore production linked incentive scheme for specialty steel,
a move aimed at boosting domestic manufacturing and exports from the sector.
However, traders will be concerned as former World Bank chief economist Kaushik
Basu said India's wholesale price-based inflation is at a 30-year high, leading
to a very alarming situation for the country. He, however, doesn't see any risk
of hyperinflation, but cautioned that if retail inflation follows wholesale
prices, it might lead to an inflationary crisis. There will be some
cautiousness as the US has said India remains a challenging place to do
business, and urged it to foster an attractive and reliable investment climate
by reducing barriers to investment and minimising the bureaucratic hurdles.
Telecom stocks, namely Bharti Airtel, Vodafone Idea and Tata Tele will be in
limelight amid reports that the Supreme Court will pronounce its judgment on
appeal for correction of errors in Adjusted Gross Revenue (AGR) calculation on
July 23. Infrastructure industry related stocks will be in focus amid report
that the Road Transport and Highways ministry has constructed 13,327 km of
National Highways in 2020-21, which works out to about 37 km per day. Zomato
will list its shares on the exchanges today ahead of its scheduled date of July
27. The issue price has been fixed at Rs 76 per share. The Rs 9,375-crore
initial public offering (IPO) of Zomato received a stellar response from
investors as it was subscribed 38.25 times during July 14-16. There will be
some important result reactions too, to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,824.05
|
15,755.36
|
15,863.76
|
BSE
Sensex
|
52,837.21
|
52,583.20
|
52,979.23
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
213.38
|
302.55
|
299.91
|
306.31
|
Bharti Airtel
|
198.47
|
546.70
|
530.90
|
555.25
|
ITC
|
183.11
|
207.00
|
205.81
|
208.21
|
ICICI Bank
|
131.23
|
655.95
|
649.40
|
661.40
|
Wipro
|
120.43
|
584.20
|
575.14
|
589.14
|
Wipro has entered into partnership with Celonis, the global leader in execution management.
Bharti Airtel has entered into a collaboration with Intel for 5G network development by leveraging virtual and open radio access network technologies and making indigenous solutions.
Bajaj Finserv's board has approved to invest Rs 342 crore in Bajaj Finserv Direct, wholly owned subsidiary of the Company. Investment is intended to support existing line of businesses.
Tata Motors' board has approved allotment of 5000 Rated, Listed, Unsecured, Redeemable, NCDs E30-B series of face value Rs 10 lakh each at par aggregating Rs 500 crore on private placement basis.