Bulls
continued to pull Indian equity benchmarks higher on Tuesday, setting fresh
record closing highs, driven by gains in Bharti Airtel, Bajaj Finance and Bajaj
Finserv amid positive global cues. After making positive start, key gauges
turned cautious ahead of GDP numbers. The National Statistical Office will
release the GDP numbers for the April-June quarter on August 31, 2021. RBI MPC
in its August 06, 2021 resolution said that it expects June quarter GDP to grow
at 21.4 per cent. However, markets soon regained traction and traded in fine
fettle taking support from commerce ministry's data showing that 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. Traders
took 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. The rally in Indian equity markets also
received support from private report that India's economy is expected to have
grown in double digits during the April-June quarter of this financial year,
helped by a low base of the previous year. The expected rebound in economic
growth would also stand testament to the strong consumer activity, unfazed by
the second wave of the covid-19 pandemic. First-quarter GDP numbers schedule to
be release today. Traders also remain energized with another private report
stating that the overall hiring activity in India has touched pre-pandemic
level and going ahead consumption economy will play an important role in
driving job growth further. Adding more optimism, a private report stated that
business resumption activity continued its northward journey and reached a new
high, much above the pre-pandemic levels for the week ended August 29. The
Nomura India Business Resumption Index rose to 102.7 for the week ending 29
August from 101.3 in the prior week. Finally, the BSE Sensex rose 662.63 points
or 1.16% to 57,552.39, while the CNX Nifty was up by 201.15 points or 1.19% to
17,132.20.
The US markets ended lower on
Tuesday on profit taking contributed to
weakness on Wall Street after the S&P 500 and the Nasdaq ended Monday's
trading at new record closing highs.
Weakness also prevailed in the markets as the Conference Board showed a
substantial deterioration in US consumer sentiment in the month of August. The
Conference Board said its consumer confidence index tumbled to 113.8 in August
from a downwardly revised 125.1 in July. Street had expected the consumer
confidence index to drop to 123.0 from the 129.1 originally reported for the
previous month. With the bigger than expected decrease, the index slumped to
its lowest level since hitting 95.2 in February of 2021. Concerns about the
Delta variant-and, to a lesser degree, rising gas and food prices-resulted in a
less favorable view of current economic conditions and short-term growth
prospects, said Lynn Franco, Senior Director of Economic Indicators at The
Conference Board. She added while the resurgence of COVID-19 and inflation
concerns have dampened confidence, it is too soon to conclude this decline will
result in consumers significantly curtailing their spending in the months
ahead.
Crude oil futures ended lower on
Tuesday amid concerns about likely excess supply in the market with OPEC and
allies set to increase production, and the restoration of crude output in the
US after Hurricane Ida. The Organization of the Petroleum Exporting Countries
(OPEC) and its allies are set to meet on Wednesday. It is widely expected that
the group will agree to proceed with plans to add another 400,000 barrels per
day of supply each month through December. Further, weak Chinese economic data
weighed as well on crude oil prices. China's service sector contracted in
August amid the renewed virus flare-up, official survey results from the
National Bureau of Statistics showed. Crude oil futures for October fell 71
cents or about 1 percent to settle $68.50 barrel on the New York Mercantile
Exchange. November Brent crude dropped 60 cents or about 0.8% percent to settle
at $71.63 a barrel on London's Intercontinental Exchange.
Indian rupee continued its upward
momentum for the third day and ended fairly higher against US dollar on Tuesday
following dovish comments by the US Federal Reserve chairman on interest rates.
A strong rally in the domestic equity markets and weak American currency in the
overseas markets also supported the rupee sentiment. Sentiments got boost with
private report that India's economy is expected to have grown in double digits
during the April-June quarter of this financial year, helped by a low base of
the previous year. First-quarter GDP numbers schedule to be release today. On
the global front; dollar was trading near three-week lows against a basket of
currencies on Tuesday, as investors looked to U.S. jobs figures later this week
for clues on stimulus taper timing. Finally, the rupee ended 73.00, stronger by
29 paise from its previous close of 73.29 on Monday.
The FIIs as per Tuesday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 10317.04 crore against gross selling of Rs 8602.58 crore,
while in the debt segment, the gross purchase was of Rs 536.97 crore against
gross selling of Rs 258.35 crore. Besides, in the hybrid segment, the gross
buying was of Rs 6.22 crore against gross selling of Rs 11.80 crore.
The US markets ended in red on
Tuesday as traders seemed worried about missing out on further upside. Asian
markets are trading mixed on Wednesday as worries about slowing global growth
in several markets returned to weigh on traders' minds. Indian markets ended at
fresh record highs on Tuesday led by gains in metals and financial stocks amid
mixed global cues. Today, start of session is likely to be flat-to-positive
amid mixed global cues. Markets may remain volatile amid a host of regulatory
and macro-economic triggers. Also, bouts of volatility could be on cards as
phase-IV of Sebi's peak margin norms kick in today. As per the rules, intra-day
traders will have to pay 100 per cent upfront margin instead of 75 per cent
asked previously. Traders will be getting encouragement as India's economy grew
by 20.1 per cent in the first quarter of 2021-22, helped by a low base of the
year-ago period. According to data released by the National Statistical Office
(NSO), the gross domestic product (GDP) had contracted by 24.4 per cent in the
corresponding April-June quarter of 2020-21. Some support will come as Chief
Economic Advisor (CEA) K V Subramanian said that India's economy is all set for
robust growth on the back of government's capex push, structural reforms, rapid
inoculation and financial sector cleanup and activities would recover to
pre-Covid levels by the next year. Sentiments will get a boost as Moody's
Investors Service said the economic activity in India is picking up with the
gradual easing of COVID restrictions and there could be further upside to
growth as economies around the world gradually reopen. Additionally, the
government data stated that high tax collections due to tighter rules for the
goods and services tax (GST), and an economy on the recovery path coupled with
expenditure compression resulted in the Centre's fiscal deficit narrowing to
21.3 per cent of the Budget Estimates (BE) in the first four months of the
current financial year. Besides, India's output of eight core industries grew
9.4 per cent year-on-year (YoY) in July on the back of a low base as all
sectors, except crude oil, registered an increase in output. Traders may take
note of private report that Economic recovery will continue to need both fiscal
and monetary policy support, and while the global recovery may help exports,
the government will have to act swiftly in correcting the protectionist stance
and fast-tracking trade agreements. Auto stocks will also be in focus today as
the automobile companies are set to report their August sales figures. there
will be some reaction in aviation industry stocks as credit ratings agency ICRA
said pandemic-hit Indian aviation industry is expected to report a net loss of
Rs 25,000-26,000 crore while its debt level may increase to Rs 1.2 lakh crore
in the ongoing fiscal year. Meanwhile, Two IPOs - Ami Organics and Vijaya
Diagnostic Centre - will open for subscription on Wednesday, 1 September 2021.
Both the IPOs look to raise Rs 2,465 crore cumulatively.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,132.20
|
16,980.86
|
17,218.51
|
BSE
Sensex
|
57,552.39
|
57,065.90
|
57,832.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Bharti Airtel
|
596.61
|
664.05
|
636.66
|
679.76
|
Tata Motors
|
369.51
|
287.30
|
284.95
|
290.80
|
Power Grip Corporation of India
|
324.36
|
175.35
|
174.51
|
176.61
|
State Bank of India
|
262.62
|
426.05
|
420.84
|
429.14
|
ITC
|
258.08
|
211.30
|
208.50
|
212.85
|
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