Indian equity
benchmarks recovered from afternoon blip and ended on a positive note on Monday
led by gains in Mahindra & Mahindra, Axis Bank and Tech Mahindra among
others. Markets made optimistic start, as traders took some support with the
Services Export Promotion Council (SEPC) said services exports have been
recording healthy growth rate consistently and are expected to grow by 28 per
cent in 2021-22 to take the exports to nearly $ 266 billion. Sentiments
remained positive as India Inc said that the Reserve Bank of India's decision
to keep key interest rates unchanged and maintain an accommodative monetary
policy stance will boost the confidence of businesses and consumers. Besides,
referring to Prime Minister Narendra Modi's target of $400 billion in exports
this year, the Confederation of Indian Industry (CII) called it attainable,
given the current global situation of post-pandemic economic recovery and
rising competitiveness of Indian goods. However, benchmarks cut all of their
initial gains in afternoon session but got back on the winning track, after the
Ministry of Health said that more than 51.66 crore vaccine doses have been
provided to states and union territories so far, through all sources and a
further 55,52,070 doses are in the pipeline. Out of the 51.66 crore doses, over
2.29 crore balance and unutilised Covid-19 vaccine doses are still available
with the states and union territories and private hospitals to be administered.
Traders also took some solace as foreign portfolio investors (FPI) have made a
comeback to India's equities segment and made a net investment of Rs 975 crore
in the first week of August. Besides, after taking the bold decision to scrap
all retrospective tax demands and refund money collected, Prime Minister
Narendra Modi said the move shows his government's commitment to providing
businesses stability of investment climate and policy consistency. Finally, the
BSE Sensex rose 125.13 points or 0.23% to 54,402.85, while the CNX Nifty was up
by 20.05 points or 0.12% to 16,258.25.
The US markets ended mostly lower
on Monday on concerns about global growth. The US saw a sharp surge in
coronavirus cases last week, with the seven-day average for new daily
infections surpassing 100,000, a level not seen since the winter surge. Meanwhile, China imposed travel curbs at many
places in the country, aiming to halt the spread of the delta variant of the
coronavirus. Stocks continued to turn in a mixed performance following last
Friday's better than expected US jobs data. The closely watched report from the
Labor Department added to economic optimism but also raised concerns about the
outlook for monetary policy. On the sector front, Gold stocks showed a
substantial move to the downside, with the NYSE Arca Gold Bugs Index plunging
by 2.6 percent. A steep drop by the price of crude oil also contributed to
considerable weakness among oil service stocks, resulting in a 1.9 percent
slump by the Philadelphia Oil Service Index. Airline, oil producer and tobacco
stocks also saw notable weakness on the day, while some strength was visible
among brokerage and steel stocks.
Crude oil futures ended lower on
Monday on concerns about outlook for energy demand after China imposed travel
curbs at many places in the country, aiming to halt the spread of the delta
variant of the coronavirus. In China,
where the Delta variant has been detected in more than a dozen cities since mid
July, new curbs, including flight cancellations have been imposed. Travel
warnings have been issued in nearly 50 cities, and limits on public transport
and taxi services have been imposed in 144 of the worst-hit areas. Meanwhile,
the US too saw a sharp surge in coronavirus cases last week, with the seven-day
average for new daily infections surpassing 100,000, a level not seen since the
winter surge. Crude oil futures for September dropped $1.80 or 2.6 percent to
settle $66.48 barrel on the New York Mercantile Exchange. October Brent crude
fell $1.56 or 2.2 percent to settle at $69.14 a barrel on London's
Intercontinental Exchange.
Reversing previous session gains,
Rupee tumbled against dollar on Monday, on account of sustained dollar demand
from importers and banks. Traders overlooked Services Export Promotion
Council's (SEPC) statement that services exports have been recording healthy
growth rate consistently and are expected to grow by 28 per cent in 2021-22 to
take the exports to nearly $266 billion. Meanwhile, country's foreign exchange
reserves surged by $9.427 billion to record high of $ 620.576 billion in the
week ended July 30. In the previous week ended July 23, the reserves had
declined by $ 1.581 billion to $ 611.149 billion. On the global front, dollar
hit a four-month high against the euro on Monday, reversing a recent fall after
strong labor market data encouraged investors to bring forward their bets on
the Federal Reserve reducing its pandemic-era stimulus. Finally, the rupee
ended 74.26, weaker by 11 paise from its previous close of 74.15 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 6676.76 crore against gross selling of Rs 6518.74 crore, while
in the debt segment, the gross purchase was of Rs 134.59 crore with gross sales
of Rs 89.79 crore. Besides, in the hybrid segment, the gross buying was of Rs
48.12 crore against gross selling of Rs 39.04 crore.
The US markets ended mostly lower
on Monday with energy companies logging some of the biggest losses as oil
prices took another turn lower. Asian markets are trading mixed on Tuesday
following overnight declines for the Dow Jones Industrial Average and S&P
500 on Wall Street. Indian markets resumed their upmove on Monday after a day's
breather, helped by buying in IT and select financial shares, as Dalal Street
overlooked weakness in global markets. Today, the markets are likely to make
flat-to-negative start amid mixed global cues. There will be some cautiousness as
GST officers detected over Rs 4,000 crore of Input Tax Credit (ITC) fraud in
June quarter 2021-22. Minister of State for Finance Pankaj Chaudhary said 7,268
cases of ITC fraud involving Rs 31,233 crore were detected by the Central GST
officers in 2020-21. Though, some respite may come later in the day with the
Centre for Monitoring Indian Economy (CMIE) data showing that India witnessed
an addition of 16 million jobs in July mainly in the agriculture and
construction sectors. Some support may come as the Reserve Bank issued draft
guidelines to further liberalise regulatory framework governing overseas
investments with a view to promote ease of doing business. The RBI has placed
on its website two documents -- draft Foreign Exchange Management (Non-debt Instruments
- Overseas Investment) Rules, 2021 and draft Foreign Exchange Management
(Overseas Investment) Regulations, 2021. Also, some support may come as the
Finance Ministry on Monday said a Bill to end retrospective taxes imposed on
indirect transfer of Indian assets will encourage companies to invest in India
and help the country become a $5-trillion economy. Traders may take note of
Small Industries Development Bank of India (SIDBI) has launched various micro,
small and medium enterprises (MSMEs) cluster development focussed initiatives.
Meanwhile, the government has achieved 26.6 per cent of the budget estimates
for GST collections in the first three months of the current fiscal. Auto
stocks will be in focus as India's overall vehicle retail sales on both
sequential and year-on-year basis in July 2021 with low base and rising demand.
The data released by the Federation of Automobile Dealers Associations (FADA)
showed a rise of 34.12 per cent during the month under review from the level of
July 2020. There will be some reaction in oil & gas sector stocks as
India's fuel demand rose 7.9 percent in July compared with the same month last
year. Data from the Petroleum Planning and Analysis Cell (PPAC) of the oil
ministry showed consumption of fuel, a proxy for oil demand, totalled 16.83
million tonnes. Two more IPOs - Chemplast Sanmar and Aptus Value Housing
Finance -are set to open for subscription on Tuesday, 10 August 2021. Chemplast
Sanmar has fixed a price band of Rs 530-541 per share, while Aptus Value Housing
Finance issue will be sold in a price of Rs 346-353 a share.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,258.25
|
16,184.61
|
16,326.31
|
BSE
Sensex
|
54,402.85
|
54,156.51
|
54,616.97
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State Bank of India
|
221.96
|
433.40
|
429.00
|
439.80
|
ITC
|
203.58
|
213.80
|
211.95
|
216.40
|
Tata Motors
|
169.85
|
298.10
|
294.70
|
302.85
|
Hindalco Industries
|
137.78
|
434.70
|
427.34
|
443.54
|
Coal India
|
129.86
|
143.25
|
141.11
|
146.61
|
Tata Motors has delivered 35 electric AC buses to BEST as part of an order of 340 Starbus e-buses, which are to be supplied to the undertaking.
Grasim Industries has executed a Share subscription and Shareholders' Agreement with Renew Green Energy Solutions & Renew Surya Uday and Power Purchase Agreement with Renew Surya Uday.
The government has granted auto fuel retailing license to seven new entities including Reliance Industries and Reliance BP Mobility -- a joint venture of Reliance and BP.
M&M has unveiled its new visual identity including a brand-new logo that will differentiate its SUV portfolio.