Indian equity
benchmarks gained for second straight session on Friday, led by strength in
Metal, Banking, Basic Materials and Telecom shares amid positive global cues.
The benchmarks traded in a narrow band in the first half of trade and jumped in
noon deals, as traders got some solace with Chief Economic Adviser K.V.
Subramanian's statement that food inflation is likely to moderate on account of
the twin impact of opening up of economic activities and good monsoon and
attributed the rise in food prices to restrictions imposed by several states
during April-May to deal with the second wave of Covid-19. Traders found some
support with Crisil's report that States' revenues is set to cross the Pre-Covid
pandemic level in the current fiscal (FY22), driven by higher tax buoyancy,
rise in sales tax collections from petroleum products coupled with increase in
grants following 15th Finance Commission recommendations. It noted that revenue
of the top 10 states had plunged 600 basis points (bps) last fiscal. Traders
remain energized as industry body -- the National Association of Software and
Service Companies (Nasscom) stating that India's share in the global
engineering and research and development (ER&D) market is likely to grow at
a compound annual growth rate (CAGR) of 12-13 per cent to reach $63 billion by
2025. Nasscom President Debjani Ghosh noted that the pandemic has altered the
way consumers behave, interact with companies, and how businesses interact. She
said ccontactless technologies, analytics, software-led systems are changing
how products are designed, redesigned, engineered, and consumed. Meanwhile,
asserting that continuous reforms make India a great place to do business,
Finance Minister Nirmala Sitharaman invited global investors to take advantage
of the recent FDI reforms, the privatisation policy and the performance linked
incentive (PLI) scheme. Finally, the BSE Sensex rose 226.04 points or 0.43% to
52,925.04, while the CNX Nifty was up by 69.90 points or 0.44% to 15,860.35.
The US markets ended mostly
higher on Friday as optimism about strong economic growth overshadowed concerns
about inflation. The Federal Reserve last week forecast rate hikes in 2023, but
traders seemed to bet on hopes a tighter monetary policy is not imminent and
despite any tapering of asset purchase program sometime in the not-too-distant
future, the program will continue to support markets until that time. The Fed
is likely to begin tapering its asset purchase program in the not-too-distant
future, but the program will continue to support the markets until that time.
On the economic data front, a report from the Commerce Department showed the
annual rate of core consumer price growth in May matched street estimates. The
reading on inflation said to be preferred by the Fed showed the annual rate of
core consumer price growth accelerated to 3.4 percent in May from 3.1 percent
in April. The Commerce Department also said personal income slumped by 2.0
percent in May after plunging by 13.1 percent in April. Street had expected
personal income to tumble by 2.5 percent. Meanwhile, the report showed personal
spending was virtually unchanged in May after climbing by 0.9 percent in April.
Personal spending was expected to rise by 0.4 percent. A report from the
University of Michigan said that its consumer sentiment reading for the US was
revised lower to 85.5 in June from a preliminary reading of 86.4. Although
market had expected to score to come in at 87.4, it still remained the
second-highest since start of the pandemic.
Crude oil futures settled higher
on Friday as optimism about outlook for energy demand outweighed concerns about
possible excess supply in the market in the event of OPEC+ deciding to increase
crude production. The momentum in vaccine rollouts and the reopening of the
economies in the US and several counties across Europe, traders are betting on
hopes energy demand will see a significant rise. The Organization of the
Petroleum Exporting Countries and their allies are scheduled to meet on July 1
to discuss further easing of their output cuts from August. Meanwhile, a report
released by Baker Hughes showed the number of oil and gas rigs in the US stayed
the same this week, at 470. Crude oil futures for August rose $0.75 or about 1
percent to settle at $74.05 barrel on the New York Mercantile Exchange. August
Brent crude gained $0.46 or 0.61 percent to settle at $76.02 a barrel on
London's Intercontinental Exchange.
Erasing previous session gains,
Indian rupee ended tad lower against dollar on Friday on account of sustained
dollar demand from importers and banks. Downfall remain capped as traders took
some support with private report stating that the business activities across
sectors such as auto, consumer goods and electronics, smartphones, ecommerce,
hospitality and real estate picked up in June over May, amid falling infections
and gradual relaxation of Covid-induced restrictions in various parts of the
country. On the global front, sterling edged lower on Friday and was on track
for its worst month versus the dollar since September after the Bank of England
kept its policy unchanged. Finally, the rupee ended 74.20, weaker by 2 paise
from its previous close of 74.18 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 9497.38 crore against gross selling of Rs 10277.61 crore, while in
the debt segment, the gross purchase was of Rs 139.67 crore with gross sales of
Rs 503.04 crore. Besides, in the hybrid segment, the gross buying was of Rs
4.26 crore against gross selling of Rs 1.92 crore.
The US markets ended mostly
higher on Friday as optimism about strong economic growth outweighed concerns
about inflation, prompting traders to build up fresh positions at several
counters. Asian markets are trading mixed on Monday amid fears due to a rise in
covid cases. All eyes will be on China's official factory activity data due
Wednesday. Indian markets ended higher on Friday with Sensex at a record
closing high boosted mainly by metal, banking and auto stocks. Today, the start
of new week is likely to be flat-to-positive amid mixed global cues and fall in
coronavirus cases. India recorded 46,643 cases in the last 24 hours, lowest
since March 24, taking the country's total coronavirus caseload to 30,278,963.
Traders will be taking encouragement as Economic think-tank NCAER expects the
Indian economy to grow 8.4-10.1 percent for the current financial year as
against a contraction of 7.3 percent in the last fiscal. Some support will come
as in a relief to taxpayers in the country, the union government announced
extension of several tax compliance deadlines including time to invest in
residential house for tax deduction, payments under dispute resolution scheme.
Traders may take note of report that although the second wave of the Covid-19
pandemic again brought businesses and economic activities to a standstill,
Chairman of the State Bank of India (SBI), Dinesh Kumar Khara has expressed
hope that the country's economy would recover in the ongoing financial year.
Meanwhile, S&P Global Ratings said Indian states' weaknesses outweigh their
strengths as they battle the Coronavirus (Covid-19) pandemic and they need
financial support from the federal government, which is already dealing with
drastically reduced revenue. However, traders may be concerned as India Ratings
and Research (Ind-Ra) said India's FY22 GDP growth rate is now expected at 9.6
per cent, lower than an earlier estimate of 10.1 per cent. There may be some cautiousness as the
government's total liabilities stood at Rs 116.21 lakh crore at the end of
March 2021, up 6.36 per cent from the previous quarter. The total liabilities
(including liabilities under the Public Account) of the government were Rs
109.26 lakh crore at end-December 2020. Also, RBI data showed that sliding from
a lifetime high, India's forex reserves declined by $4.148 billion to reach
$603.933 billion for the week ended June 18 due to a fall in gold and currency
assets. There will be some reaction in renewable energy sector stocks after
Power Minister R K Singh said that as much as $70 billion (about Rs 5.2 lakh
crore) has been invested in renewable energy across the country in the past
seven years. Infrastructure stocks will be in focus with a private report that
as many as 478 infrastructure projects, each worth Rs 150 crore or more, have
been hit by cost overruns totalling more than Rs 4.4 lakh crore. Krishna
Institute of Medical Sciences (KIMS Hospitals) and Dodla Dairy will make their
stock market on Monday. The equity shares of these companies will be listed on
the BSE and the National Stock Exchange (NSE). KIMS raised Rs 2,144 crore
through its IPO while Dodla Dairy garnered Rs 520 crore from its public issue.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,860.35
|
15,798.16
|
15,896.66
|
BSE
Sensex
|
52,925.04
|
52,701.99
|
53,060.57
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil & Natural Gas Corporation
|
345.57
|
121.10
|
119.31
|
123.91
|
State Bank of India
|
298.86
|
428.80
|
421.56
|
433.51
|
Reliance Industries
|
255.46
|
2104.45
|
2,072.54
|
2,144.94
|
Tata Motors
|
224.26
|
339.65
|
336.10
|
343.00
|
Tata Steel
|
180.22
|
1165.50
|
1,140.34
|
1,180.34
|
Reliance Industries' majority-owned subsidiary -- Jio Platforms and Google have showcased jointly developed smartphone JioPhone Next.
SBI has launched the Aarogyam healthcare business loan, to provide enhanced support to the healthcare sector amid the pandemic.
Bajaj Finserv's EMI Store is offering No Cost EMI deals on a wide range of Mi TVs.
ONGC has reported consolidated net profit attributable to owners at Rs 9,404.16 crore for Q4FY21 as compared to net loss of Rs 6,338.12 crore for Q4FY20.