Gaining for
the second straight session, Indian equity benchmarks ended at a record closing
high on Tuesday, on hopes of faster pace of economic recovery as various
macro-economic indicators pointed towards demand revival in the economy.
Markets made positive start, as preliminary data released by the commerce and
industry ministry showed merchandise exports grew 48 per cent YoY in July to
$35.17 billion on account of a rise in global orders in shipments of petroleum
products, engineering products, gems and jewellery segments. Adding more
optimism, Finance Minister Nirmala Sitharaman states that the government's net
tax revenues grew 5 per cent in the fiscal year ended March 31, 2021 (FY21). The
net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24
lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous
financial year. Benchmarks continued their upward rally in late afternoon
session, as better than expected corporate earnings in June quarter added to
the bullish investors' sentiment. Adding the optimism among the market
participants, markets regulator Sebi has reduced the minimum application value
of REITs and InvITs, and revised trading lot to one unit for these emerging
investment instruments to make them attractive for retail investors. The
minimum application value has been cut down to the range of Rs 10,000-15,000
for both REITs and InvITs, compared to the earlier requirement of Rs 50,000 for
REITs and Rs 1 lakh for InvITs, Sebi said in two separate notifications dated
July 30. Investors didn't give any heed to the National Statistical Office's
(NSO) periodic labour force survey stated that unemployment rate rose to 13.3
percent in July-September 2020 as compared to 8.4 percent in the year-ago
period. Joblessness or unemployment rate (UR) is defined as the percentage of
unemployed persons in the labour force. The UR was 20.9 per cent in April-June
2020. Finally, the BSE Sensex rose 872.73 points or 1.65% to 53,823.36, while
the CNX Nifty was up by 245.60 points or 1.55% to 16,130.75.
The US markets ended higher on
Tuesday as traders shrugged off concerns about the rapid spread of the delta
variant of the coronavirus amid continued optimism about the economic outlook.
Data from the Centers for Disease Control and Prevention has shown a jump in
new coronavirus cases in the US in recent weeks, with the seven-day moving
average of new cases reaching 72,790 last Friday, surpassing the peak seen last
summer. However, the increase has also seeming led to more Americans getting
vaccinated, with the CDC saying 70 percent of US adults have now received at
least one dose of a coronavirus vaccine. Recent data has shown some signs of
slowing economic growth, but traders may see that as further proof the Federal
Reserve will not begin scaling back stimulus anytime soon. The Federal Reserve
has repeatedly pledged to maintain its asset purchases at current levels until
substantial further progress has been made toward its maximum employment and
price stability goals. Besides, the 10-year Treasury yield stabilized on
Tuesday after falling back to near five-month lows on Monday. As yields
rebounded from their decline midday back to the unchanged mark, stocks rose.
Crude oil futures ended lower on
Tuesday, extending their previous session's losses, as concern over rising
cases of the Delta coronavirus variant. Data from the Centers for Disease
Control and Prevention has shown a jump in new coronavirus cases in the US in
recent weeks, with the seven-day moving average of new cases reaching 72,790
last Friday, surpassing the peak seen last summer. The surge in new coronavirus
cases has led to renewed lockdowns in some parts of the world, which have added
to recent concerns about a slowdown in the pace of the US economic recovery. Crude
oil futures for September fell 70 cents or 1 percent to settle $70.56 barrel on
the New York Mercantile Exchange. October Brent crude dropped 48 cents or 0.66
percent to settle at $72.41 a barrel on London's Intercontinental Exchange.
Continuing previous session
gains, Indian rupee ended significantly higher against dollar on Tuesday, on
persistent selling of the American currency by exporters. Traders were
energized as India's exports grew by 47.19 per cent to $35.17 billion in July
on account of healthy growth in the outbound shipments of petroleum,
engineering, and gems and jewellery. Imports during the month also rose by
59.38 per cent to $46.40 billion, leaving a trade deficit of $11.23 billion.
Additional support also came as Finance Minister Nirmala Sitharaman said the
government's net tax revenues grew 5 per cent in the fiscal year ended March 31,
2021. Also, healthy gains in domestic equity market also supported rupee. On
the global front, sterling rose on Tuesday, helped by recent falls in COVID-19
infections in Britain and optimism around Britain's easing of lockdown
restrictions. Finally, the rupee ended 74.28, stronger by 6 paise from its
previous close of 74.34 on Monday.
The FIIs as per Tuesday's data
were net seller in equity segment, white net buyer in debt segment. In equity
segment, the gross buying was of Rs 7732.18 crore against gross selling of Rs
9220.02 crore, while in the debt segment, the gross purchase was of Rs 419.93
crore against gross selling of Rs 12.03 crore. Besides, in the hybrid segment,
the gross buying was of Rs 0.39 crore against gross selling of Rs 8.72 crore.
The US markets ended higher on
Tuesday led by gains in the Oil & Gas, Healthcare and Basic Materials
sectors. Asian markets are trading mostly in green on Wednesday led largely by
strong US corporate earnings, although the mood remained cautious as the
rapidly spreading Delta variant of the coronavirus clouds the global economic
outlook. Indian markets ended at record closing highs on Tuesday, with the
Nifty 50 index settling above 16,100, as a wave of bullishness driven by
earnings and hopes of recovery hit investors. Today, benchmarks are likely to
open in the green following gains in global markets. Investors' focus will
remain on the ongoing earnings season, the RBI MPC meet that will kick off
today and the macroeconomic data viz Markit Services and Composite PMI numbers
for July to be out later in the day. Traders will take note of report that the
Central Board of Direct Taxes (CBDT) has extended the due dates for electronic
filing of various forms under the Income-tax Act, 1961 considering the
difficulties reported by the taxpayers and other stakeholders in the electronic
filing of certain Forms. However, traders may be concerned with report that the
reproduction number of coronavirus has increased beyond one in eight states
across the country with the health ministry sounding cautious that the second wave
of the epidemic was still raging. There may be some cautiousness as the
government informed Parliament that it expects the total debt as percentage of
GDP to increase to 61.7 per cent (provisional) in 2021-22 from 60.5 per cent
(provisional) in the previous fiscal. At the same time, public debt would rise
to 54.2 per cent in the current financial year from 52 per cent in 2020-21.
Besides, GST officers have detected tax evasion of Rs 7,421 crore in the
April-June period of the current fiscal. Meanwhile, with the markets at record
highs amid economic challenges because of the Covid pandemic, Union Finance
Minister Nirmala Sitharaman said the government, the Reserve Bank of India, and
the Securities and Exchange Board of India are regularly monitoring the behaviour
of the financial markets. There will be some reaction in NBFCs stocks as rating
agency Icra said the asset quality of non-banking finance companies will see
elevated stress levels in the near term due to the second wave of the pandemic,
but the stress will subside subsequently as collection efficiencies improve and
restructuring picks up. Auto component industry stocks will be in focus as
industry body ACMA (Auto Component Manufacturers Association) said India's auto
component industry saw the cumulative revenue decline 3 per cent to Rs 340 lakh
crore in the year that ended in March 2021. There will be some reaction in
hotel industry stocks as Hotel Association of India (HAI) has sought the Union
government's help to revive the hospitality industry, including by extending
one-time restructuring of loans. Devyani International, Windlas Biotech, Exxaro
Tiles, and Krsnaa Diagnostics' IPO will today open for subscription. Devayni
International is looking to raise Rs 1,838 crore; Windlas Biotech will raise Rs
401 crore; Krsnaa Diagnostics will raise Rs 1,213 crore, and Exxaro Tiles will
raise just Rs 161 crore.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,130.75
|
16,136.14
|
16,136.14
|
BSE
Sensex
|
53,823.36
|
53,311.82
|
54,111.45
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State Bank of India
|
409.22
|
446.50
|
437.44
|
451.74
|
Tata Motors
|
310.63
|
303.70
|
299.44
|
306.24
|
Bharti Airtel
|
212.80
|
580.20
|
567.54
|
587.44
|
NTPC
|
211.22
|
117.65
|
116.60
|
118.60
|
ITC
|
184.68
|
209.90
|
207.26
|
211.71
|
Tata Motors has increased prices of its passenger vehicles by 0.8 percent with effect from August 3, 2021.
Coal India has registered a 30.7 percent growth in fuel supplies to the power sector at 166.3 million tonnes during the April-July period.
SBI's subsidiary company -- SBI General Insurance has entered into partnership with Manipal Business Solutions, the promoter of SahiPay.
Reliance Industries has invested Rs 1,00,000 in cash in 10,000 equity shares of Rs 10 each of Reliance New Solar Energy, a newly incorporated wholly owned subsidiary.