Indian
benchmark indices ended the final session of the June series of futures &
options (F&O) over half a percent higher, with major contribution from IT,
TECK and Banking stocks amid a positive trend in global markets. Key indices
made optimistic start, as traders got some support with the commerce and
industry ministry in its latest data has showed that foreign direct investment
(FDI) equity inflows into India increased by 60 percent to $4.44 billion in
April 2021 as against $2.77 billion in the same month last year. Besides, the
country has attracted total FDI inflow, including equity, re-invested earnings
and capital, of $6.24 billion during April, 2021, which is 38 percent higher as
compared to inflow of $4.53 billion in April 2020. Sentiments remained positive
after the government has notified the accounting standards for small and medium
companies that revise the turnover and borrowing limits as well as help in
making disclosure requirements less onerous. Besides, Finance Minister Nirmala
Sitharaman said the government will actively pursue cases against economic
offenders to bring back defrauded money of banks. Traders overlooked S&P
Global Ratings' report in which it slashed India's Gross domestic product (GDP)
growth forecast to 9.5 percent for the current fiscal (FY21), from 11 percent
earlier, and warned of risk to the outlook from further waves of COVID
pandemic. It lowered the growth outlook saying that a severe second COVID-19
outbreak in April and May led to lockdowns imposed by states and sharp
contraction in economic activity. Stating that permanent damage to private and
public sector balance sheets will constrain growth over the next couple of
years, it projected India's growth at 7.8 percent in the next fiscal ending
March 31, 2023. Finally, the BSE Sensex rose 392.92 points or 0.75% to
52,699.00, while the CNX Nifty was up by 103.50 points or 0.66% to 15,790.45.
The US markets ended higher on
Thursday, with the Nasdaq and the S&P 500 reaching new record closing
highs, after President Joe Biden declared that the White House struck an
infrastructure deal with a bipartisan group of senators. The strength on
markets came as traders looked to get back into action after taking a breather
on Wednesday, when the major averages spent the day bouncing back and forth
across the unchanged line. Positive sentiment may also have been generated in
reaction to a Labor Department report showing a modest decrease in first-time
claims for US unemployment benefits in the week ended June 19th. The Labor
Department said initial jobless claims edged down to 411,000, a decrease of
7,000 from the previous week's revised level of 418,000. Street had expected
jobless claims to drop to 380,000 from the 412,000 originally reported for the
previous week. A separate report from the Commerce Department showed new orders
for US manufactured durable goods rebounded in the month of May. The report
said durable goods orders surged up by 2.3 percent in May after falling by a
revised 0.8 percent in April. Street had expected durable goods orders to spike
by 2.7 percent compared to the 1.3 percent slump that had been reported for the
previous month. Excluding orders for transportation equipment, durable goods
orders rose by 0.3 percent in May after jumping by 1.7 percent in April.
Ex-transportation orders were expected to increase by 0.7 percent.
Crude oil futures ended higher on
Thursday, extending their previous session's gains, holding close to their
highest in almost three years, supported by drawdowns in US inventories and
accelerating German economic activity. Doubts about the future of the 2015 Iran
nuclear deal that could end US sanctions on Iranian crude exports also helped
prices. However, with the Organization of Petroleum Exporting Countries and
their allies set to discuss rising crude production beyond July, the uptick in
oil prices was just modest on Thursday. Crude oil futures for August rose $0.22
or 0.3 percent to settle at $73.30 barrel on the New York Mercantile Exchange.
August Brent crude gained $0.25 or 0.35 percent to settle at $75.45 a barrel on
London's Intercontinental Exchange.
Rising for the second consecutive
day, Indian rupee ended higher against dollar on Thursday. Sentiments remained
positive with commerce and industry ministry's latest data showing that foreign
direct investment (FDI) equity inflows into India increased by 60 percent to
$4.44 billion in April 2021 as against $2.77 billion in the same month last
year. However, gains remain capped as S&P Global Ratings cut India's growth
forecast for the current fiscal to 9.5 per cent, from 11 per cent earlier, and
warned of risk to the outlook from further waves of COVID pandemic. On the
global front, dollar slipped slightly on Thursday, having spent the week
gradually edging away from two-month highs hit after the U.S. Federal Reserve's
surprise hawkish shift at its meeting last week. Finally, the rupee ended
74.18, stronger by 9 paise from its previous close of 74.27 on Wednesday.
The FIIs as per Thursday's data
were net seller in equity segment, while net buyer in debt segment. In equity
segment, the gross buying was of Rs 10240.19 crore against gross selling of Rs
10487.96 crore, while in the debt segment, the gross purchase was of Rs 399.06
crore with gross sales of Rs 200.94 crore. Besides, in the hybrid segment, the
gross buying was of Rs 7.00 crore against gross selling of Rs 8.37 crore.
The US markets ended higher on
Thursday as traders were encouraged to see a bipartisan deal on infrastructure
spending as well as some positive reports on the economy. Asian markets are
trading in green on Friday tracking gains on Wall Street overnight. Indian
markets rose on Thursday led by gains in banking and IT stocks, however, losses
in energy stocks and heavyweight RIL kept the indices from hitting record
highs. Today, markets are likely to begin first trading session of the July
derivative series on a flat-to-positive note amid favourable global cues. Some
support will come as Chief Economic Adviser K.V. Subramanian said food inflation
is likely to moderate on account of the twin impact of opening up of economic
activities and good monsoon and attributed the rise in food prices to
restrictions imposed by several states during April-May to deal with the second
wave of Covid-19. Traders may take note
of report that with domestic retail fuel prices jumping to record high on
rising international oil rates, India has pressed oil cartel OPEC for
affordable oil price within a reasonable band and that the producers should
phase out production cuts. Besides, industry body Nasscom said India's share in
the global engineering and research and development (ER&D) market is
expected to grow at a compound annual growth rate (CAGR) of 12-13 per cent to
reach $63 billion by 2025. However, there may be some cautiousness as India
reported on Thursday 54,069 new Covid-19 infections over the past 24 hours,
data from the health ministry showed. It had 1,321 new fatalities, taking the
total death toll to 39,1981. Meanwhile, capital markets regulator Securities
and Exchange Board of India (Sebi) is planning to come out with a framework on
special purpose acquisition companies (SPACs), which will enable listing of
startups on domestic stock exchanges. NBFCs stocks will be in focus as the
Reserve Bank of India (RBI) tied down a non-banking financial company's ability
to pay dividend to certain factors, including how much bad debt it has in its
book and whether it has declared it correctly. There will be some reaction in
telecom stocks as Moody's Investors Service in a report said countries in the
Asia-Pacific region, including India, that are late in adopting 5G technology
will get insignificant revenue from the services.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,790.45
|
15,721.64
|
15,840.34
|
BSE
Sensex
|
52,699.00
|
52,445.80
|
52,891.43
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Reliance
Industries
|
422.09
|
2153.50
|
2,124.14
|
2,198.74
|
Oil
& Natural Gas Corporation
|
243.58
|
122.00
|
120.75
|
123.85
|
ITC
|
224.35
|
203.25
|
202.31
|
204.41
|
Adani
Ports and Special Economic Zone
|
215.03
|
709.90
|
699.40
|
722.70
|
State
Bank of India
|
192.14
|
417.20
|
414.75
|
421.20
|
TCS has launched Quartz to help MIIs offer end-to-end next generation services around tokenized securities, and drive their future growth.
Tata Motors in association with Kotak Mahindra Prime has unveiled three exciting financing solutions: the Red Carpet, the Prime Vishwas and the Low EMI schemes for urban and rural customer groups.
Eicher Motors' motorcycle arm -- Royal Enfield has earmarked Rs 20 crore to support relief and rehabilitation efforts amid the coronavirus pandemic.
Reliance Industries is planning to invest Rs 75,000 crore in setting up four Giga factories to make solar photovoltaic cells, green hydrogen, batteries and fuel cells over the next three years.