Indian equity
benchmarks closed on a positive note with both the indices at record closing
highs on Monday, as investor sentiment was lifted after some states eased
lockdowns and daily COVID-19 cases in the country hit a two-month low. Markets
started the week on an optimistic note and traded with positive bias throughout
the day, as traders took encouragement with data showing that GST tax
collections remained above Rs 1 lakh crore mark for the eighth straight month
in May, indicating that the impact of the devastating second wave of Covid
infections on the economy may have been limited. Sentiments remained positive
with NITI Aayog Vice-Chairman -- Rajiv Kumar stating that he is confident that
every organisation will revise their growth projections to 10-10.5 per cent
once they witness the growth rate by October. He said the recovery will start
from June itself and will get pace from July. He is hopeful that pandemic will
not have much impact on fiscal deficit and disinvestment targets. Equity
markets extended gains in late afternoon session, taking support from Labour
Minister Santosh Gangwar's statement that India is committed to making all
possible efforts to counter the impact of the pandemic and emerge stronger. He
also said governments are required to deal with the pandemic and provide an
effective response at policy levels, to balance business continuity, income
security and above everything, the well-being of all. Traders were positive,
amid reports that India is likely to benefit from the global minimum 15 percent
corporate tax rate pact inked by the world's richest nations as the effective
domestic tax rate is above the threshold, and the country would continue to
attract investment. Meanwhile, with an aim to provide taxpayer convenience and
a modern, seamless experience to taxpayers, the Income Tax Department is
launching its new e-filing portal on June 7, 2021.This is another initiative by
CBDT towards providing ease of compliance to its taxpayers and other
stakeholders. Finally, the BSE Sensex rose 228.46 points or 0.44% to 52,328.51,
while the CNX Nifty was up by 81.40 points or 0.52% to 15,751.65.
The US markets ended mostly lower
on Monday as investors prepared to see a potential kick higher in consumer
price inflation. The choppy trading on markets came as traders seemed reluctant
to make significant moves after last week's advance lifted the major averages
to their best closing levels in a month. Traders remain optimistic about the
economic outlook but are still on edge about the possibility of the Federal
Reserve scaling back its ultra-easy monetary policy. A lack of major US
economic data also kept traders on the sidelines ahead of the release of the
Labor Department's report on consumer price inflation on Thursday. Most of the
major sectors showed only modest moves on the day, although substantial
strength was visible among biotechnology stocks. Reflecting the strength in the
sector, the NYSE Arca Biotechnology Index spiked by 3.6 percent to its best
closing level in three months. Biogen (BIIB) led the sector higher after the
FDA granted accelerated approval to the company's Aduhelm for the treatment of
Alzheimer's. Significant strength was also visible among tobacco stocks, as
reflected by the 1.4 percent gain posted by the Dow Jones US Tobacco Index. On
the other hand, oil service stocks gave back ground after recent strength,
dragging the Philadelphia Oil Service Index down by 2.5 percent.
Crude oil futures ended lower on
Monday after Chinese data showed the nation's crude oil imports fell to a
year's low in May. Further, traders also seemed to be weighing the prospects of
Iranian oil coming into the market. Iran and global powers will enter a fifth
round of talks on June 10 in Vienna that could include Washington lifting
economic sanctions on Iranian oil exports. However, the downside was limited as
traders continued to hope demand for energy will see a significant increase in
the US and Europe. In India, Delhi and Mumbai have begun to ease coronavirus
restrictions. Crude oil futures for July fell $0.39 or 0.6 percent to settle at
$69.23 barrel on the New York Mercantile Exchange. August Brent crude dropped
$0.40 or 0.6 percent to settle at $71.49 a barrel on London's Intercontinental
Exchange.
Indian rupee ended considerably
higher against dollar on Monday, on persistent selling of the American currency
by exporters. Sentiments were upbeat as foreign investors have infused close to
Rs 8,000 crore into Indian equities in the first four trading sessions of June
as risk-on sentiment improved amid rapidly falling new Covid cases and robust
corporate earnings. Besides, healthy growth in the domestic equity markets
added to the rupee gains. On the global front, dollar edged up as European
markets opened on Monday, recovering from Friday's drop on US jobs data which
was below expectations. Finally, the rupee ended 72.80, stronger by 19 paise
from its previous close of 72.99 on Friday.
The FIIs as per Monday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 7723.06 crore against gross selling of Rs
6209.20 crore, while in the debt segment, the gross purchase was of Rs 841.15
crore with gross sales of Rs 1459.86 crore. Besides, in the hybrid segment, the
gross buying was of Rs 3.59 crore against gross selling of Rs 25.21 crore.
The US markets ended mostly lower
on Monday with investors standing by on news of a global minimum corporate tax
rate, lingering inflation fears, and a lack of market-moving economic news.
Asian markets are trading mostly in red on Tuesday as investors reacted to the
release of Japan's revised first-quarter gross domestic product figures. Indian
markets ended at record close on Monday led by gains in energy, IT and banking
stocks. The sentiment was also lifted as some states eased lockdowns and daily
COVID-19 cases in the country hit a two-month low. Today, the markets are
likely to make flat-to-positive start amid a sharp fall in Covid cases in the
country and accelerated pace of vaccinations, even as the global market setup
remains mixed. India's daily Covid-19 cases have fallen below 100,000 after 68
days. The country reported 87,345 new infections and 2,115 new deaths, taking
the total number of confirmed infections in India to 28,996,949 and deaths to
351,344. In view of the waning second wave, several states have decided to ease
the lockdown-like curbs that were imposed to curtail the pace of infections.
Also, Prime Minister Narendra Modi announced free vaccination for all adults
from June 21. However, there will be some cautiousness as domestic credit
ratings agency Crisil cut its FY22 growth estimate for India to 9.5 per cent
from the earlier 11 per cent due to the hit to private consumption and
investments following the second wave of COVID-19. Traders may take note of
industry body PHDCCI's report that businesses are struggling with rising cost
of raw materials amid the second COVID wave as restrictions in many parts of
the country have disrupted supply chains and also impacted the pace of economic
recovery. Meanwhile, FPIs remained net sellers in May to the tune of $397
million as against an outflow of $1,297 million seen in April. Banking stocks
will be in focus as global rating agency Fitch said the Indian government's
bold move to privatise public sector banks (PSBs) faces risks from political
opposition and structural challenges, including heightened balance-sheet stress
due to Covid-19. There will be some reaction agriculture stocks as Niti Aayog
Member (Agriculture) Ramesh Chand said the second COVID-19 wave will not impact
the Indian agriculture sector in any way as rural areas saw the spread of
infections in May when agriculture activities remained at a bare minimum.
Besides, Edible oil trade body SEA has demanded that the government take
immediate steps to curb excess import of refined soybean oil from Nepal at zero
duty, flouting rules of origins.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,751.65
|
15,695.35
|
15,790.70
|
BSE
Sensex
|
52,328.51
|
52,129.29
|
52,453.22
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
649.86
|
345.50
|
339.84
|
351.09
|
Adani
Ports And Special Economic Zone
|
336.84
|
878.60
|
843.24
|
906.39
|
ITC
|
314.33
|
211.45
|
210.30
|
212.50
|
Coal
India
|
310.71
|
156.25
|
154.85
|
158.25
|
Oil
& Natural Gas Corporation
|
287.09
|
125.15
|
124.20
|
126.80
|
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