Indian equity
benchmarks closed at record closing highs on Monday led by gains Metal, Energy
and Oil & Gas stocks. Benchmarks started session on a sluggish note, as
traders were cautious with a private report stated that it is highly unlikely
that India will become a $5 trillion economy by 2024-25 due to the slowdown
caused by the COVID-19 pandemic. Besides, India recorded 33,221 new Covid-19
cases and 421 deaths in the past 24 hours, taking its tally to 32,225,175 and
the death toll to 431,674. However, key indices recovered from early losses as
the data released by the commerce ministry showed that the country's exports
surged 49.85 per cent to $35.43 billion in July on account of healthy growth in
petroleum, engineering, and gems and jewellery segments, even as the trade
deficit widened to $10.97 billion during the month. Some support also came as
RBI data showed country's foreign exchange reserves increased by $889 million
to a lifetime high of $621.464 billion in the week ended August 6, 2021.
Trading sentiments remained positive in late afternoon deals, as India's annual
wholesale price inflation eased to 11.16% in July from the previous month's
12.07%, helped by lower increases in the cost of fuel and food items. A
low-base effect also contributed to the WPI inflation in July, since it stood
at minus 0.25% in the corresponding month of 2020. Traders got some support
with ICRA Ratings' report stated that most states are likely to be in better
fiscal health this financial year as 20 of them are collectively carrying
forward Rs 2.6 lakh crore borrowed in FY21 to this fiscal. It said this also
explains why the states have been borrowing less so far this year despite the
pandemic-driven revenue crunch and the soaring public expenses towards health
and food. Traders also remained positive
as Prime Minister Narendra Modi announced an ambitious Rs 100 lakh crore
holistic infrastructure development program Gatishakti, which is aimed at
boosting employment opportunities and productivity of industries. Finally, the
BSE Sensex rose 145.29 points or 0.26% to 55,582.58, while the CNX Nifty was up
by 33.95 points or 0.21% to 16,563.05.
The US markets ended mostly
higher on Monday, with the Dow and the S&P 500 recovering to end the day at
new record closing highs, while the Nasdaq regained ground but still closed in
the red, as traders remained optimistic about the outlook for the markets
despite some signs of weakness in the global economy. Concerns about the
outlook for the global economy contributed to the initial weakness among stocks
following the release of disappointing Chinese data. Chinese industrial
production and retail sales growth slowed in July, suggesting a slowdown in the
economic recovery amid new COVID-19 outbreaks and supply chain disruptions.
Industrial production growth slowed to 6.4 percent in July from 8.3 percent in
June, data from the National Bureau of Statistics revealed. Output was expected
to gain 7.8 percent. Negative sentiment was also generated in reaction to a
report from the New York Federal Reserve showing New York manufacturing
activity saw significantly slower growth in the month of August. The New York Fed
said its general business conditions index plunged to 18.3 in August from 43.0
in July. While a positive reading still indicates growth, street had expected
the index to show a much more modest drop to 30.0. Besides, most of the major
sectors ended the day showing only modest moves, although energy stocks saw
significant weakness amid a steep drop by the price of crude oil. Crude for
September delivery tumbled $1.15 to $67.29 a barrel.
Crude oil futures ended lower for
third straight session on Monday amid worries about outlook for energy demand
after data showed China's industrial production and retail sales growth slowed
sharply in July, missing expectations, as flooding and fresh outbreaks of
COVID-19 disrupted business activity. China's industrial production growth
slowed to 6.4% in July from 8.3% a month ago, data from the National Bureau of
Statistics revealed Monday. Output was expected to gain 7.8%. Retail sales grew
at a slower pace of 8.5% on a yearly basis, following a 12.1% rise in June.
This was also weaker than the street's forecast of 11.5%. Crude oil futures for
September fell $1.15 or 1.7 percent to settle $67.29 barrel on the New York
Mercantile Exchange. October Brent crude dropped $0.91 or 1.3 percent to settle
at $69.68 a barrel on London's Intercontinental Exchange.
Indian Money market remain closed on Monday on account of
Parsi New Year.
The FIIs as per Friday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 6768.43 crore against gross selling of Rs
6478.59 crore, while in the debt segment, the gross purchase was of Rs 218.94
crore with gross sales of Rs 539.67 crore. Besides, in the hybrid segment, the
gross buying was of Rs 3.56 crore against gross selling of Rs 12.14 crore.
The US markets ended mostly in
green on Monday as investors managed to shrug off new concerns about China's
economy, the coronavirus Delta variant and turmoil in Afghanistan to largely
drive stocks higher while also boosting some more defensive investments. Asian
markets are trading mostly in red on Tuesday as investors continue to monitor
the Covid situation in the region. Indian markets ended higher on Monday led by
gains in metals and FMCG stocks. Today, markets are likely to make cautious
start amid weakness in global markets. There will be some cautiousness as India
recorded 24,725 new Covid-19 cases and 438 deaths in the past 24 hours, taking
its tally to 32,249,900 and the death toll to 432,112. Kerala reported 12,294
new infections, Maharashtra 4,145, followed by Andhra Pradesh (909), Tamil Nadu
(1,851), Karnataka (1,065), West Bengal (502) and Delhi (27). However, traders
will be taking encouragement with report that Finance Minister Nirmala
Sitharaman said that she expects inflation to remain in the prescribed range
during the current fiscal. The RBI has been mandated to keep inflation at 4 per
cent, with tolerance level of 2 per cent on either side. Some optimism may also
come with report that investments by private equity and venture capital funds
doubled to a record high of $9.5 billion in July mainly driven by higher
investor interest in the e-commerce sector. Private equity (PE) and venture
capital (VC) investments stood at $4.1 billion in the year-ago period. Some
support will come as Finance Minister Nirmala Sitharaman said that the rules
for the recent taxation amendment bill will be framed soon. She said we will
have to wait for the rules to be framed under the recent taxation amendment
bill. There will be some buzz in oil & gas industry stocks as Finance
Minister Nirmala Sitharaman ruled out a cut in excise duty on petrol and diesel
to ease prices, which have touched an all-time high, saying payments in lieu of
past subsidised fuel pose limitations. Tyre industry stocks will be in focus as
automotive Tyre Manufacturers Association (ATMA) asked the government to allow
duty-free import of natural rubber as shortage of the commodity in India has
become a major deterrent for the tyre industry to support domestic
manufacturing. According to the tyre industry body, natural rubber (NR)
consumption is expected to increase further and the annual demand is expected
to cross 13 lakh tonnes this fiscal. There will be some reaction in sugar
industry stocks with report that the Indian Sugar Mills Association (ISMA) has
written to the Prime Minister's Office (PMO) to immediately increase the
Minimum Sale Price (MSP) of sugar from the current Rs 31 per kg to at least Rs
34-35 per kg to help it clear the pending sugarcane dues ahead of the new
crushing season that will start from October 2021. Meanwhile, the Civil
Aviation Ministry gave conditional permission to 10 organisations, including
Mahindra and Mahindra, Steel Authority of India (SAIL) and Bayer Crop Science,
to use drones for various purposes.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,563.05
|
16,499.40
|
16,608.05
|
BSE
Sensex
|
55,582.58
|
55,348.81
|
55,748.54
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
271.14
|
1,519.40
|
1,482.90
|
1,545.20
|
Indian Oil Corporation
|
218.79
|
107.20
|
105.19
|
108.34
|
State Bank of India
|
176.08
|
424.85
|
421.24
|
431.24
|
Power Grid Corporation of India
|
159.81
|
180.70
|
179.30
|
183.20
|
Oil & Natural Gas Corporation
|
147.71
|
115.50
|
114.01
|
117.66
|
Tata Motors is planning to drive in new models, expand its sales network as it aims to maintain its double-digit market share in the highly competitive domestic market.
M&M has rolled out its much-awaited all-new SUV, XUV700, at price starting from Rs 11.99 lakh (ex-showroom) onwards.
Coal India has set a capital expenditure target of Rs 17,000 crore for the 2021-22 fiscal, which is around Rs 4,000 crore more than its spending last year.
Tata Steel has outlaid a capital expenditure of Rs 3,000 crore for its European operations as its focus is to make the business stronger.