In a session
marked by high volatility, Indian equity benchmarks managed to eke out gains to
end at record closing highs on Monday led by gains in Maruti Suzuki, Mahindra
& Mahindra and Bajaj Auto amid a largely positive trend in global markets.
The benchmarks staged a gap up opening, as sentiments got a boost as Union
Finance Minister Nirmala Sitharaman said the Indian economy is on a sustained
path of revival and cited rise in GST collections and direct taxes to support
her assertion. Traders also took encouragement as the Finance Ministry said net
direct tax collection grew 74.4 per cent to Rs 5.70 lakh crore between April 1
to September 22 this fiscal. Traders found some support with Union Minister
Piyush Goyal's statement that India's export performance in the first six
months of 2021-22 shows that outbound shipments will exceed the target of $400
billion in the ongoing fiscal year. Adding to the optimism, Minister of State
for Finance Bhagwat K Karad said the government plans to increase public sector
undertakings' (PSUs) income and create employment through the disinvestment
process. However, the indices gave up gains in the first hour of opening to
trade in a range bound manner, as traders got anxious with RBI data showed the
country's foreign exchange reserves declined by $1.47 billion to $639.642
billion in the week ended September 17. Traders also remain concerned with
report stating that as many as 470 infrastructure projects, each worth Rs 150
crore or more, have been hit by cost overruns totalling more than Rs 4.37 lakh
crore. However, some buying activity
witnessed in afternoon deals, taking support from private report stated that
Ratings agency Icra revised up its 2021-22 real GDP growth estimate for India
to 9 percent from the earlier 8.5 percent. A ramp-up in COVID-19 vaccination,
healthy advance estimates of kharif (summer) crop and faster government
spending were the factors which led to the revision. It expects the second half
of the fiscal year to have brighter prospects. Besides, Central Board of Direct
Taxes (CBDT) said the net personal income and corporate taxes collection grew
74 per cent to Rs 5.70 lakh crore so far this fiscal, driven mainly by advance
tax and TDS payments. Finally, the BSE Sensex rose 29.41 points or 0.05% to
60,077.88 and the CNX Nifty was up by 1.90 points or 0.01% to 17,855.10.
The US markets ended mostly lower
on Monday with investors largely making cautious moves as they looked ahead to
speeches from several Fed officials, including Chairman Jerome Powell, and
continued to keep an eye on the developments surrounding debt-laden China
Evergrande. Traders ignored report that new orders for US manufactured durable
goods increased by much more than expected in the month of August, according to
a report released the Commerce Department. The report said durable goods orders
jumped by 1.8 percent in August after rising by a revised 0.5 percent in July.
Street had expected durable goods orders to increase by 0.6 percent compared to
the 0.1 percent dip that had been reported for the previous month. The bigger
than expected increase in durable goods orders was largely due to a spike in
orders for transportation equipment, which shot up by 5.5 percent in August
after dipping by 0.4 percent in July. Orders for non-defense aircraft and parts
led the way higher, soaring by 77.9 percent in August after plunging by 36.3
percent in July. Excluding the rebound in orders for transportation equipment,
durable goods orders edged up by 0.2 percent in August after climbing by 0.8
percent in July. Notable increases in orders for fabricated metal products,
computers and electronic products and electrical equipment, appliances and
components were partly offset by a drop in orders for machinery.
Crude oil futures ended higher on
Monday, extending gains to a fifth session, amid tighter supplies and signs of
rising demand for oil in several countries across the world. Recent data showed
US oil inventories have dropped by 16% year-on-year, and are nearly 23% lower
than the level seen in June 2020. On the supply front, OPEC and its allies are
looking to increase their output gradually. The group is reportedly finding it
difficult to raise output as under-investment or maintenance delays persist
from the pandemic. Benchmark Crude oil futures October delivery rose $1.47 or 2
percent to settle at $75.45 barrel on the New York Mercantile Exchange. Brent
crude for November delivery gained $1.44 or 1.8 percent to settle at $79.53 a
barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against
dollar on Monday, on emergence of demand for the greenback from importers.
Sentiments were negative, as RBI data showed the country's foreign exchange
reserves declined by $1.47 billion to $639.642 billion in the week ended
September 17. In the previous week ended September 10, 2021, the reserves had
dipped by $1.34 billion to $641.113 billion. The reserves had surged by $8.895
billion to a lifetime high of $642.453 billion in the week ended September 3,
2021. Meanwhile, India and the US looking forward to reconvening trade policy
forum this year. The US also looking forward to holding the next meeting of the
US-India Commercial Dialogue and CEO Forum to enhance business and commercial
ties between the two countries. On the global front, dollar rallied and the
safe-haven yen dipped to a nearly three-month low on Monday, as fears of
widespread market contagion from indebted China Evergrande Group receded.
Finally, the rupee ended 73.83, weaker by 15 paise from its previous close of
73.68 on Friday.
The FIIs as per Monday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 11619.11 crore against gross selling of Rs 11048.66 crore,
while in the debt segment, the gross purchase was of Rs 1562.76 crore with
gross sales of Rs 530.05 crore. Besides, in the hybrid segment, the gross
buying was of Rs 16.67 crore against gross selling of Rs 58.36 crore.
The US markets ended mostly lower
on Monday as losses for several Big Tech companies checked gains elsewhere in
the market. Asian markets are trading mixed on Tuesday as investors remained
cautious on uncertainty around China's financially-troubled property developer
Evergrande. Indian markets closed flat Monday but managed to scale record highs,
amid volatility as IT stocks dragged while autos, banks, and Reliance
Industries lend support to the indices. Today, markets likely to open flat with
a positive bias amid mixed global cues. Traders will get encouragement as
ratings agency Icra revised up its 2021-22 real GDP growth estimate for India
to 9 per cent from the earlier 8.5 per cent. It said a ramp-up in COVID-19
vaccination, healthy advance estimates of kharif (summer) crop and faster
government spending were the factors which led to the revision. Some support
will come as Commerce and industry minister Piyush Goyal said export figures
have hit $185 billion as of September 21. These figures are very encouraging
and I compliment the exporters community for this. The minister also said that
the current foreign trade policy (FTP) is slated to be extended by another six
months--31 March, 2022. Besides, India recorded a spike of less than 20,000 new
Covid-19 cases in the past 24 hours. The country also witnessed 137 deaths,
taking the death toll to 447,362. So far, India has recorded 33,694,940 corona
cases in total. Traders may take note of report that the finance ministry said
the government will borrow Rs 5.03 trillion in the second half of the current
fiscal to fund the revenue gap for reviving the pandemic-hit economy. During
the first half, the government has raised Rs 7.02 trillion by issuing bonds,
the ministry said in a statement. Meanwhile, the Union health ministry said the
cumulative number of COVID-19 vaccine doses administered in the country crossed
86 crore. It said more than 88 lakh (88,98,560) vaccine doses have been
administered till 7 pm. There will be some reaction in coal industry stocks with a private report that
India's massive fleet of coal plants are running dangerously low on stockpiles,
which may force the nation to buy expensive shipments of the fuel or else risk
blackouts. It said stockpiles have fallen to the lowest since November 2017.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,855.10
|
17,790.84
|
17,931.44
|
BSE
Sensex
|
60,077.88
|
59,839.28
|
60,364.41
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
563.05
|
331.65
|
325.34
|
335.79
|
Oil & Natural Gas Corporation
|
341.96
|
140.00
|
138.09
|
141.34
|
ITC
|
228.90
|
238.70
|
235.51
|
241.86
|
State Bank of India
|
117.46
|
446.60
|
442.39
|
450.69
|
Bharti Airtel
|
112.82
|
722.55
|
716.50
|
730.25
|
HDFC Bank is planning to double its rural reach to two lakh villages, which will see it hire 2,500 people in the next six months.
Reliance Infrastructure's board has approved raising up to Rs 750 crore by issuing up to $100,000,000 unsecured foreign currency convertible bonds maturing in 2031 with a coupon rate of 4.5 per cent on private placement basis.
Coal India has supplied 8.61 million tonnes Fuel to the power sector in August i.e. rose by 11%.
SBI has signed a Service Level agreement with Paisalo Digital for engagement as National Corporate Business Correspondent of the Bank for promoting financial inclusion by providing banking services through kiosks.