Indian equity benchmarks ended
higher over half percent on Monday, with Nifty settling above crucial 17,650
mark, while Sensex ending above 59,200 mark. Key gauges made optimistic start
and stayed in green for whole day, as traders took encouragement with a State
Bank of India report stated India is likely to become the third largest economy
by 2029. India is currently ranked fifth largest economy. Some support also
came as hoping for a double-digit growth in GDP in this financial year, Union
Finance Minister Nirmala Sitharaman said the nation is on a strong wicket when
compared to others, and is responsive in terms of extending hand-holding to the
required sections. Traders also found some solace with report that foreign
investors have pumped in a little over Rs 51,200 crore into the Indian equity
markets in August, making it the highest inflow in 20 months, amid improving
risk sentiment and stabilisation in oil prices. Key gauges extended their gains
in late afternoon session as S&P Global in a report said India's Services
PMI rose to 57.2 in August from July's 4-month low of 55.5, on stronger
expansion in new work intakes, upturn in business activity, and the sharpest
rise in employment for over 14 years. Adding more optimism on the street, a
private report said India has overtaken the U.K. to become the world's
fifth-largest economy and is now behind only the US, China, Japan and Germany.
A decade back, India was ranked 11th among the large economies while the U.K.
was at the fifth position. Traders overlooked Former RBI governor D Subbarao's
statement that India's GDP growth of 13.5 per cent in the April-June quarter of
2022-23 (Q1FY23) has turned out be a cause for disappointment and concern, as
there was expectation of a bigger bounce back from the first quarter of last
year when economic activity was crippled by the Delta wave of COVID-19.
Finally, the BSE Sensex rose 442.65 points or 0.75% to 59,245.98 and the CNX
Nifty was rose by 126.35 points or 0.72% to 17,665.80.
The US markets were closed on
Monday on account of Labor Day.
Erasing previous session's
losses, Indian Rupee ended fairly higher against US dollar on Monday, on the
back of selling of the American currency by exporters. Sentiments were upbeat
as S&P Global in a report said India's Services PMI rose to 57.2 in August
from July's 4-month low of 55.5, on stronger expansion in new work intakes,
upturn in business activity, and the sharpest rise in employment for over 14
years. Additional support came with State Bank of India's report that India is
likely to become the third largest economy by 2029. India is currently ranked
fifth largest economy. On the global front, euro sank below $0.99 to a new
20-year low on Monday after Russia's halt to gas supplies down its main
pipeline to Europe heightened fears about a deepening energy crisis across the
region. Finally, the rupee ended at 79.78 (Provisional), stronger by 9 paisa
from its previous close of 79.87 on Friday.
The FIIs as per Monday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 5359.34 crore against gross selling of Rs 6644.26 crore, while
in the debt segment, the gross purchase was of Rs 494.49 crore against gross
selling of Rs 1089.39 crore. Besides, in the hybrid segment, the gross buying
was of Rs 1.49 crore against gross selling of Rs 41.19 crore.
The US markets remained closed on
Monday on account of Labor Day holiday. Asian markets are trading mostly higher
on Tuesday after China pledged to make renewed efforts to boost its economy on
Monday, while investors pinned hope on more clarity ahead of a number of
central bank meetings. Indian markets clocked gains to the tune of almost one
percent on Monday backed by across-the-board buying despite weak trend in
global equities. Today, markets are likely to get flat-to-positive start owing
to lack of definite cues from the global markets, as US was closed overnight.
Traders will be taking encouragement as Finance Minister Nirmala Sitharaman
said that while the necessary stimulus for growth would continue, her ministry
and the Reserve Bank of India (RBI) would work on a pathway to maintain the
growth momentum for the next 25 years in order to make India an advanced
economy. Some support will come as Reserve Bank Governor Shaktikanta Das said
despite the latest headwinds arising from the Jackson Hole summit leading to
extreme volatility, the country's banking system and financial markets are
strong enough to withstand such pressures. Traders may take note of report that
Information and Technology Minister Ashwini Vaishnaw said that the ministry
will soon come up with a new version of the Data Protection Bill. However,
there may be some cautiousness as India's external debt rose by 8.2 per cent
year-on-year to $620.7 billion as of March 2022, which according to the finance
ministry is sustainable. Coal industry stocks will be focus as the government's
monthly statistics (provisional) showed that India produced 58.33 million
tonnes of coal in August, missing its target of 67.94 MT for the month, though
it increased by 8.27 per cent from 53.88 MT in the corresponding month of
previous fiscal. There will be some reaction in gold finance companies stocks
as Rating agency Standard & Poor's (S&P) said intense competition in
the gold loan business in India may shrink margins of gold finance companies.
Tea industry stocks will be in limelight as Tea Board data showed that exports
of tea during the first six months January to June 2022 has increased to 96.89
million kg as compared to 86.46 million kg in the similar previous period.
Meanwhile, India's largest airport service aggregator platform, DreamFolks
Services is likely to make its debut today on stock exchanges. The company
launched its Rs 562 crore initial public offering (IPO) from August 24 to
August 26 and received strong demand across investor categories. The IPO was
subscribed by 56.68 times Qualified institutional investors (QIBs) subscribed
by 70.53 times against the portion offered to them.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,665.80
|
17,576.39
|
17,719.19
|
BSE
Sensex
|
59,245.98
|
58,936.03
|
59,432.08
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
403.52
|
106.80
|
105.96
|
107.46
|
ITC
|
174.71
|
328.75
|
325.14
|
330.99
|
NTPC
|
152.26
|
164.70
|
162.90
|
165.80
|
Oil & Natural Gas Corporation
|
148.65
|
133.55
|
132.84
|
134.09
|
Hindalco Industries
|
147.07
|
428.80
|
419.14
|
434.34
|
NTPC has received 13 bids for divesting up to 5-10 per cent stake in NTPC Green Energy.
IOC has raised Rs 2,500 crore in debt through non-convertible debentures at an interest rate lower than government bonds.
Tata Motors has launched India's first CNG powered M&HCV trucks that are equipped with advanced driver assistance System.
ICICI Bank is planning to raise up to Rs 10,000 crore through infrastructure bonds for project financing and affordable housing.