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NSE Intra-day chart (26 July 2021)
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Market Commentary 27 July 2021
Benchmarks likely to make positive start following global peers


Indian equity benchmarks were traded in lackluster mood and ended with losses on Monday dragged down by losses in index heavyweights SBI, Reliance Industries, Mahindra & Mahindra amid a largely subdued trend in global markets. Indian markets started the day marginally in red, as fears of a third wave and the spread of Delta and Delta plus variant dampened sentiments in markets. However, markets traded flat with a positive bias in morning deals as Commerce and Industry Minister Piyush Goyal expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year. Traders took some support as ICRA Ratings in its latest report stated that the government is set to exceed the budgeted tax collection target of Rs 22.2 lakh crore for 2021-22, led by indirect taxes, primarily taxes on petroleum products. Some support also came as investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 92,261 crore till the end of June, making it the highest level in 37 months. This also marks the third consecutive monthly growth. But, markets erased gains and continued their lackluster trade in afternoon session, as traders were worried with report by Omidyar Network India and Crisil stating that the second COVID-19 wave has intensified pressure points for small and mini NBFCs, as they did not get the benefit of the RBI's liquidity measures announced last year.  Some concern also came with reports that foreign portfolio investors (FPIs) offloaded Indian equities to the tune of over Rs 5,689 crore in July so far as they continued to adopt a cautious stance in view of various domestic and global factors. During July 1-23, FPIs took out Rs 5,689.23 crore from equities, as per depositories data. Meanwhile, the provisional commerce ministry data showed that the country's exports grew 45.13 per cent to $22.48 billion during July 1-21 on account of healthy growth in sectors such as gems and jewellery, petroleum and engineering. Imports also rose 64.82 per cent to $31.77 billion in the said period, leaving a trade deficit of $9.29 billion. Finally, the BSE Sensex fell 123.53 points or 0.23% to 52,852.27, while the CNX Nifty was down by 31.60 points or 0.20% to 15,824.45. 


The US markets ended marginally higher on Monday on upbeat earnings reports contributed to rebound along with continued optimism about the economy despite some concerns about the spread of new coronavirus variants. However, the choppy trading seen for most of the day came as traders took a breather following the substantial rebound seen over the course of the previous week. Traders have been reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Fed is expected to leave interest rates unchanged, but traders will be paying close attention to any comments regarding the central bank's asset purchase program. On the economic data front, new home sales in the US unexpectedly showed another steep drop in the month of June, according to a report released by the Commerce Department. The report said new home sales tumbled by 6.6 percent to an annual rate of 676,000 in June after plunging by 7.8 percent to a revised rate of 724,000 in May. The continued nosedive surprised participants, who had expected new home sales to jump by 4.0 percent to an annual rate of 800,000 from the 769,000 originally reported for the previous month. With the unexpected decrease, new home sales slumped to their lowest annual rate since hitting 582,000 in April of last year. The drop in new home sales in June was led by the Northeast, where new home sales plummeted by 27.9 percent during the month.


Crude oil futures suffered their first loss in five sessions on Monday as traders weighed prospects for demand amid the spread of the delta variant of the coronavirus that causes COVID-19. In coronavirus news, Russia's total virus cases surpassed 6 million and Turkey said cases in the country tripled on Sunday compared with earlier this month. The world's largest crude importer China reported 76 new COVID-19 cases on Sunday, the highest since the end of January amid a surge of local infections in the eastern city of Nanjing. Crude oil futures for September fell $0.16 or 0.2 percent to settle $71.91 barrel on the New York Mercantile Exchange. However September Brent crude surged $0. 40 or 0.5 percent to settle at $74.50 a barrel on London's Intercontinental Exchange.


Indian rupee ended weaker against the US dollar on Monday, on increased demand for the greenback from importers and banks. Traders were concerned as foreign portfolio investors (FPIs) offloaded Indian equities to the tune of over Rs 5,689 crore in July so far as they continued to adopt a cautious stance in view of various domestic and global factors. During July 1-23, FPIs took out Rs 5,689.23 crore from equities, as per depositories data. However, downfall remained capped as Industry Minister Piyush Goyal expressed confidence that India will continue to attract high foreign direct investment (FDIs) in the current financial year. On the global front, dollar slipped against a basket of currencies on Monday as investor focus turned to this week's Federal Reserve meeting. Finally, the rupee ended 74.42, weaker by 2 paise from its previous close of 74.40 on Friday.


The FIIs as per Monday's data were net sellers in equity segment, while net buyers in debt segment. In equity segment, the gross buying was of Rs 7647.86 crore against gross selling of Rs 7862.97 crore, while in the debt segment, the gross purchase was of Rs 664.93 crore with gross sales of Rs 425.13 crore. Besides, in the hybrid segment, the gross buying was of Rs 1.37 crore against gross selling of Rs 12.03 crore.


The US markets ended higher in choppy trade on Monday as investors avoided making new, bold bets before this week's Federal Reserve policy meeting, which might offer clues on the outlook for monetary policy. Asian markets are trading mostly in green on Tuesday with traders keeping at least half an eye on the United States where major companies report earnings and the Federal Reserve meets on policy this week. Indian markets ended lower Monday dragged by selling in financials and auto stocks. Today, markets are likely to open in green following positive global cues. Traders will be taking encouragement with Care Ratings' report that the country's gross domestic product (GDP) growth is likely to be 8.8 to 9 per cent in the current financial year, driven by agriculture and industry sectors. The country's economy had contracted by 7.3 per cent in fiscal 2020-21. Some support will come as the government's total tax collection in the April-June quarter grew about 86 per cent to more than Rs 5.57 lakh crore. Out of the total amount, collection of net direct tax stood at Rs 2.46 lakh crore and of indirect tax was at Rs 3.11 lakh crore. However, there may be some concern as Moody's Analytics said the second wave of COVID-19 may have a more lasting damage on the Indian economy and exports will once again be the foundation for recovery. In its report titled 'APAC Economic Outlook: The Delta Roadblock', Moody's Analytics said social distancing is weighing on the current quarter, but economic recovery will resume by the year-end. There will be some buzz in the banking stocks as Minister of State for Finance Bhagwat K Karad said non-performing assets (NPAs) or bad loans of banks have declined by Rs 61,180 crore to Rs 8.34 lakh crore at the end of March 31, 2021, as result of various steps taken by the government. There will be some reaction in real estate stocks with a private report stating that around $18 billion loans of the overall lending to the real estate sector by banks, NBFCs and housing finance companies (HFCs) are under severe stress. Glenmark Life Sciences' Rs 1,514 crore initial public offering (IPO) opens for subscription on Tuesday, July 27. The issue consists of a fresh issue of equity shares worth Rs 1,060 crore and an offer for sale by existing shareholders worth R 453 crore. Investors can bid for Glenmark Life Sciences IPO at the fixed price band of Rs 695-720 per share in a bid lot of 20 shares. There will be some important earnings announcements too to keep the markets buzzing.


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State Bank of India






  • IndusInd Bank is planning to raise up to Rs 30,000 crore or its equivalent amount in such foreign currencies as may be necessary. 
  • Cipla is recalling 7,228 bottles of Solifenacin Succinate tablets, a medicine used to treat overactive bladder, in the US market due to manufacturing issues. 
  • Sun Pharmaceutical Industries includes its subsidiaries and Cassiopea SpA have signed license and supply agreements for Winlevi (clascoterone cream 1%) in the United States and Canada. 
  • State Bank of India has opened a branch at President's Estate.
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