Snapping their
four-session losing run, Indian equity benchmarks ended in green on Friday led
by gains in ICICI Bank, Reliance Industries, SBI, Titan Company and HDFC.
Markets made a cautious start, as India recorded 43,360 infections and 796
fatalities in the last 24 hours. In just over five weeks, from May 23 to July
1, the country reported 100,000 deaths from Covid even as the second wave
waned. Sentiments remained in lackluster mood as the Financial Stability Report
(FSR) released by the Reserve Bank of India (RBI) said that the gross
non-performing assets (GNPAs) ratio of banks may increase to 9.8 percent by
March 2022 from 7.48 percent in March 2021 under a baseline scenario. Besides,
foreign institutional investors (FIIs) stood as net sellers in the capital
market as they offloaded shares worth Rs 1,245.29 crore on Thursday, as per
provisional exchange data. However, late hour buying helped benchmarks to end
the session near intraday high levels as traders found some solace with credit
rating agency, Moody's Investors Service assessed the overall economic effect
of the second wave to be softer than that during the first wave of pandemic
last year, although delivery of and access to vaccines will determine the
durability of recovery. Moody's expects the current lockdowns to have less of
an adverse impact on economic activity than the nationwide lockdown in April
2020 because the latest restrictions have been more targeted, localised and less
stringent. Some support also came with the Union Finance Minister Nirmala
Sitharaman's statement that a special session of the GST Council will be held
soon to discuss all compensation-related issues. She also said that the flow of
COVID-19 vaccination across the country will be well managed and all states
will be taken care of. Finally, the BSE Sensex rose 166.07 points or 0.32% to
52,484.67, while the CNX Nifty was up by 42.20 points or 0.27% to 15,722.20.
The US markets settled sharply
higher on Friday as traders reacted positively to the closely watched monthly
jobs report. The advance lifted all three major averages to new record closing
highs. The Labor Department released a report showing a continued
reacceleration in the pace of US job growth in the month of June. The report
showed non-farm payroll employment spiked by 850,000 jobs in June after surging
by an upwardly revised 583,000 jobs in May. Street had expected employment to
jump by about 700,000 jobs compared to the addition of 559,000 jobs originally
reported for the previous month. Following the decrease in employment seen last
December, the pace of job growth has bounced back to its highest level since
last August. Meanwhile, the Labor Department said the unemployment rate
unexpectedly inched up to 5.9 percent in June from 5.8 percent in May. The
unemployment rate was expected to edge down to 5.7 percent. The stronger than
expected job growth paints a positive picture of the gradually reopening
economy but is not seen as likely to significantly alter the Federal Reserve's
timeline for tightening monetary policy. A separate report from the Commerce
Department showed the US trade deficit widened roughly in line with estimates
in the month of May.
Crude oil futures ended
marginally lower on Friday ahead of the outcome of the meeting of the
Organization of the Petroleum Exporting Countries and its allies. OPEC+ was
originally scheduled to discuss and announce its plans about increasing crude
output on Thursday (July 1). However, the group announced yesterday that it
will meet on Friday to discuss plans about easing production curbs. Meanwhile,
a report from Baker Hughes showed US energy firms added oil and natural gas
rigs for a third time in four weeks. The report said the oil and gas rig count in
the US went up by 5 to 475 in the week ended July 2. This is the highest count
since April 2020. Crude oil futures for August fell $0.07 or about 0.1 percent
to settle at $75.16 barrel on the New York Mercantile Exchange. However,
September Brent crude rose 33 cents to settle at $76.17 a barrel on London's
Intercontinental Exchange.
Continuing prevision session
drubbing, Indian rupee ended significantly weaker against dollar on Friday, on
emergence of demand for the greenback from importers. Investors were worried as
the Financial Stability Report (FSR) released by the Reserve Bank of India
(RBI) said that the gross non-performing assets (GNPAs) ratio of banks may
increase to 9.8 percent by March 2022 from 7.48 percent in March 2021 under a
baseline scenario. Traders ignored report that Reserve Bank on India's scheme
providing interest subsidy for post and pre-shipment export credit has been
extended by three months till September, a move that will provide relief to
exporters. On the global front, sterling hit fresh two-month lows against the
dollar on Friday, pressured in the wake of dovish comments from the Bank of
England's governor. Finally, the rupee ended 74.74, weaker by 19 paise from its
previous close of 74.55 on Thursday.
The FIIs as per Friday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 5447.34 crore against gross selling of Rs 5561.75 crore, while
in the debt segment, the gross purchase was of Rs 35.97 crore with gross sales
of Rs 208.50 crore. Besides, in the hybrid segment, the gross buying was of Rs
22.97 crore against gross selling of Rs 31.45 crore.
The US markets ended higher on
Friday with all three major indices at records after a solid jobs report that
was not seen as accelerating a monetary policy shift. Asian markets are trading
mixed on Monday ahead of key economic data releases in Australia and China.
Indian markets broke their four-session losing run on Friday as emergence of
buying in financial, pharma and IT stocks negated losses in metal counters.
Today, the start of new week is likely to be firm tracking gains in global
markets and ahead of the services PMI to be out later in the day. Sentiments
will get a boost as India recorded the highest-ever exports of $95 billion
during April-June, up 85 per cent year-on year (YoY) and 18 per cent higher
than the first quarter of the fiscal year 2019-20. The merchandise exports grew
47 per cent YoY to $32.46 billion in June, driven by a robust demand of
engineering goods, petroleum products, and gems and jewellery in the external
markets. Besides, Commerce and Industry Minister Piyush Goyal said India has
set a target of $400 billion merchandise exports for 2021-22. Some support will
come as the Union government announced fresh guidelines to include wholesale
and retail trades as micro, small and medium enterprises (MSMEs) in a move that
is expected to benefit as many as 25 million traders battered by the Covid-19
pandemic. Additionally, in reversal of a two-month selling trend, foreign
portfolio investors (FPIs) in June turned out to be net buyers by investing Rs
13,269 crore in Indian markets. However, there may be some cautiousness as
India's total tally of Covid-19 cases surged to 30,584,872 on Monday with
40,387 new infections being reported in a day, while 29,692,986 have recovered,
according to Worldometer. The death count increased to 402,758 with 743 new
fatalities. Meanwhile, the Reserve Bank of India (RBI) has highlighted the
likely issues around big tech's role in the financial services sector and said
that concerns such as level playing field with banks and operational risks have
intensified lately. There will be some buzz in infrastructure stocks as NHAI
said toll collection in June 2021 increased to Rs 2,576.28 crore, 21 per cent
higher than Rs 2,125.16 crore collected in May this year, with the easing of
lockdown in most states and rise in the traffic movement on the highways. There
will be some reaction in oil & gas industry stocks as Union Finance
Minister Nirmala Sitharaman ruled out any cut in excise duty levied on petroleum
products for now. She said that there is no such proposal at the present to
reduce prices of petroleum. Auto stocks will be in focus with report that auto
companies may soon be asked to manufacture passenger and commercial vehicles
that run on multiple fuel configuration aimed at reducing the use of polluting
fossil fuels and cutting down harmful emissions. Besides, shares of India
Pesticides will make their debut on the stock exchanges today. The initial
public offering of the agrochemical firm was subscribed 29 times last month
with retail investors bidding for the issue 11.3 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,722.20
|
15,659.31
|
15,761.71
|
BSE
Sensex
|
52,484.67
|
52,265.60
|
52,615.82
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Coal India
|
208.05
|
147.65
|
146.25
|
148.85
|
Oil & Natural Gas Corporation
|
200.14
|
118.45
|
117.35
|
120.20
|
Tata Motors
|
183.04
|
344.90
|
341.75
|
346.80
|
Adani Ports & Special Economic Zone
|
176.76
|
710.40
|
702.16
|
721.46
|
NTPC
|
172.15
|
117.50
|
116.65
|
118.70
|
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Maruti Suzuki India has extended free service and warranty timelines for its customers.
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