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NSE Intra-day chart (30 August 2021)
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Market Commentary 31 August 2021
Benchmarks likely to make cautious start on Tuesday; GDP data eyed


Bulls continued to roar on Dalal Street on Monday with frontline gauges hitting fresh all-time closing highs breaching many crucial psychological levels one after another. Sentiments remained upbeat since beginning as traders took encouragement with report that foreign direct investment (FDI) into the country rose by more than twofold to $17.57 billion during April-June this fiscal on account of measures such as policy reforms and ease of doing business. Further, support came as foreign portfolio investors (FPIs) pumped in a net of just Rs 986 crore in Indian equities during August. Markets extended gains as traders remained positive, as Niti Aayog Vice-Chairman Rajiv Kumar has said a strong economic growth rebound is expected on the back of rapid vaccinations, a recovering monsoon boosting agricultural output, thrust on infrastructure investments by the government, and growth in export, which have performed remarkably during April June registering a growth of 18 per cent over the same period in the pre-pandemic year of 2019-20. Kumar further said that as per consensus estimates, despite downward revision in the GDP growth projections, India is expected to be amongst the fastest-growing major economies in the world. He added we also expect consumption to recover in the third and fourth quarters of the fiscal year. Markets continued to trade northward till end of day's trade as sentiments remained buoyed after India Ratings and Research in its latest report stated that it expects the aggregate fiscal deficit of states in the country to moderate to 4.1 per cent of GDP in the current financial year from its earlier expectation of 4.3 per cent. In line with the slight moderation in its forecast for fiscal deficit in FY22, the agency expects the aggregate debt/GDP ratio to come in lower at 32.4 per cent in FY22 as against the previous estimate of 34 per cent. Some optimism also came after RBI data showed that Bank credit grew by 6.55 per cent to Rs 108.89 lakh crore and deposits by 10.58 per cent to Rs 155.70 lakh crore in the fortnight ended August 13, 2021. Announcing the launch of the September 2021 round of Inflation Expectations Survey of Households (IESH), the RBI said the survey aims at capturing subjective assessments on price movements and inflation, of about 6,000 households, based on their individual consumption baskets, across 18 cities. Finally, the BSE Sensex rose 765.04 points or 1.36% to 56,889.76, while the CNX Nifty was up by 225.85 points or 1.35% to 16,931.05.   


The US markets ended mostly higher on Monday as traders remained optimistic about the outlook for the markets even though the Federal Reserve has signaled it plans to begin scaling back its asset purchases later this year. The Fed's asset purchase program has helped prop up stocks throughout much of the coronavirus pandemic, but traders seem to believe the strength of the economy will provide continued support. Fed Chair Jerome Powell's comments last Friday suggesting interest rate hikes remain a long way off have also increased the appeal of stocks. Besides, computer hardware stocks showed a strong move to the upside, contributing to the advance by the tech-heavy Nasdaq, with the NYSE Arca Computer Hardware Index climbing by 1.5 percent. Retail, commercial real estate and software stocks also moved notably higher on the day. On the other hand, airline stocks moved sharply lower, dragging the NYSE Arca Airline Index down by 2.7 percent. Oil service, banking and gold stocks also moved to the downside, limiting the upside for the broader markets.


Crude oil futures ended higher on Monday, but remained below session highs as Hurricane Ida weakened to tropical storm status after forcing shutdowns of US Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase. Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane, and has since dropped to tropical storm status. Hundreds of oil production platforms were evacuated ahead of the storm and nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended. Crude oil futures for October rose 34 cents or about 0.54 percent to settle $69.08 barrel on the New York Mercantile Exchange. October Brent crude gained 54 cents or about 0.74% percent to settle at $73.23 a barrel on London's Intercontinental Exchange.


Indian rupee ended significantly higher against dollar on Monday, on persistent selling of the American currency by exporters. Besides, massive gains in domestic equity markets also supported rupee. Sentiments got boost as foreign direct investment (FDI) into the country rose by more than twofold to $17.57 billion during April-June this fiscal on account of measures such as policy reforms and ease of doing business. Further, support also came as foreign portfolio investors (FPIs) pumped in a net of just Rs 986 crore in Indian equities during August. On the global front, dollar steadied near two-week lows on Monday, held back by the message from the U.S. Federal Reserve chief that there is no hurry to dial back massive stimulus. Finally, the rupee ended 73.29, stronger by 40 paise from its previous close of 73.69 on Friday.


The FIIs as per Monday's data were net seller in equity segment and net buyer in debt segment. In equity segment, the gross buying was of Rs 7516.70 crore against gross selling of Rs 8133.99 crore, while in the debt segment, the gross purchase was of Rs 528.90 crore with gross sales of Rs 220.04 crore. Besides, in the hybrid segment, the gross buying was of Rs 9.84 crore against gross selling of Rs 12.57 crore.


The US markets ended mostly higher on Monday as the Federal Reserve appeared in no rush to step away from its massive stimulus, and US oil prices finished higher. Asian markets are trading mostly in red on Tuesday as worries about China's slowing economic growth and regulatory changes weighed on investor sentiment. Indian markets ended at record closing highs led by strong buying across sectors amid positive global cues. Today, the markets are likely to make cautious start amid mixed global cues. Investors will be looking ahead to the GDP numbers to be out later in the day. The National Statistical Office will release the GDP numbers for the April-June quarter on August 31, 2021. RBI MPC in its 6th August 2021 resolution said that it expects June quarter GDP to grow at 21.4 per cent. Traders will be getting some encouragement as exports from special economic zones (SEZs) grew by about 41.5 per cent to Rs 2.15 lakh crore during the April-June quarter of the current fiscal on account of healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors. Some support will come with private report that economic growth to be in the range of 14 per cent to 23 per cent for the first quarter of the current financial year. The growth was projected on a low base of 24.4 per cent contraction in the gross domestic product in Q4 of the previous financial year. Traders may take note of report that Niti Aayog has suggested to the government to provide tax incentives for investment in InvITs, and bring them under the IBC to attract retail as well as institutional investors to achieve the goals of the National Monetisation Pipeline scheme. Meanwhile, the RBI said the fair value of the share-linked incentives paid to chief executive officers, whole-time directors and other key functionaries by the private banks should be recognised as an expense during the relevant accounting period. There will be some buzz in insurance industry stocks with a private report that General and health insurers have received almost 1.4 times the number of Covid-related health claims so far in FY22 than what they had received in entire FY21. There will be some reaction in telecom stocks as Cellular Operators Association of India said India risks lagging in the rollout of the super-fast fifth-generation wireless networks unless the government makes airwaves cheaper in an upcoming auction, citing the financial stress in the sector.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Bharti Airtel





State Bank of India





Tata Motors





Oil & Natural Gas Corporation





Tata Steel






  • Bharti Airtel has received board's approval for raising up to Rs 21,000 crore by way of rights issue, at a price of Rs 535 per share. 
  • Tata Steel is planning to invest Rs 3,000 crore in Jharkhand in the next three years with expansion of capacities of coal and iron ore mines and downstream value added steel portfolio. 
  • L&T's construction arm has won a slew of orders in India and abroad for its various businesses.   
  • Hero MotoCorp and ASDC have joined hands to bridge the digital skill gap at the country's auto dealerships and build their capacity in this critical growth driver.
News Analysis