In a volatile
session, Indian equity benchmarks ended at record closing highs on Friday, amid
a largely positive trend in global equities. The markets, after opening on a
positive note, rallied through the first half, led by heavyweights. Traders
took encouragement with Commerce Secretary Anup Wadhawan's statement that
India's export of agricultural and allied products in 2020-21 grew by 17.34 per
cent to $41.25 billion, and this growth momentum is expected to be sustained in
the current fiscal as well. Some optimism also came with credit rating agency
Icra Ratings' report stated that with decline in number of fresh COVID-19 cases
and easing of restrictions, the country's gross domestic product (GDP) will grow
at 8.5 percent in FY2021-22. It expects the gross value added (GVA) at basic
prices (at constant 2011-12 prices) to grow at 7.3 per cent in FY2022. It also
said if vaccine coverage is accelerated following the re-centralised
procurement policy, the GDP expansion in FY2022 may be as high as 9.5 percent,
with a widening upside in Q3 and Q4 of FY2022. Indices, however, lost momentum
during the later hours of the day, dragged by financials. Some cautiousness
remained among traders with US think-tank has observed that India's domestic
challenges due to COVID-19 crisis have become a threat to its regional and
global ambitions. It warned that unless it recovers with the help of allies
like the United States, the pandemic could impact the geopolitical balance in the
Indo-Pacific. But, key gauges managed to end session in green, taking support
from report that the arrival of monsoon in the country ahead of the schedule is
going to boost agricultural production in the country and is expected to add to
turnaround in the economy. Monsoon has arrived into parts of Gujarat, Madhya
Pradesh, Chhattisgarh, Odisha, and remaining areas of Maharashtra, Telangana,
Andhra Pradesh six days ahead of schedule. Meanwhile, the Reserve Bank of India
(RBI) has said that it would be buying bonds maturing between 2026 and 2035 in
its third tranche of the G-sec Acquisition Programme (G-SAP). The total size of
the G-SAP programme would be Rs 40,000 crore, including Rs 10,000 crore of
state development loans. Finally, the BSE Sensex rose 174.29 points or 0.33% to
52,474.76, while the CNX Nifty was up by 61.60 points or 0.39% to 15,799.35.
The US markets ended choppy
trading session in green on Friday as traders seemed reluctant to make
significant moves ahead of the Federal Reserve's monetary policy meeting
scheduled for next week. The Fed is widely expected to leave its monetary
policy unchanged, but traders will be looking for any clues the central bank is
considering tapering its asset purchases. Besides, recent report from the Labor
Department showed consumer price inflation reached the highest level in nearly
thirteen years in May, although Fed officials have repeatedly downplayed the
risks of prolonged inflation. Traders will likely pay close attention to any
changes to the Fed's comments about inflation, with previous statements largely
attributing rising inflation to transitory factors. On economic data front,
preliminary data released by the University of Michigan showed a bigger than
expected rebound in consumer sentiment in the month of June. The report said
the consumer sentiment index climbed to 86.4 in June after falling to 82.9 in
May. Street had expected the index to rise to 84.0. On the sectoral front, most
of the major sectors ended the day showing only modest moves, but steel stocks
showed a strong move to the upside, driving the NYSE Arca Steel Index up by 1.5
percent. Significant strength was also visible among brokerage stocks, as
reflected by the 1.3 percent gain posted by the NYSE Arca Broker/Dealer Index.
Airline, natural gas and housing stocks also saw strength on the day, while
gold stocks moved notably lower along with the price of the precious metal.
Crude oil futures ended higher on
Friday amid rising expectations that global energy demand will pick up thanks
to an acceleration in vaccination rollouts and the gradual reopening of
business in several countries. Oil prices were also supported by the
International Energy Agency's remarks in its monthly report that the
Organization of the Petroleum Exporting Countries and allies would need to
increase output to meet demand. The IEA expects energy demand to recover to
pre-pandemic levels by the end of next year. According to Baker Hughes, the
number of active US rigs drilling for oil increased by six to 365 this week. The
total active US rig count, which includes those drilling for natural gas, rose
by five to 461.Cru de oil futures for July rose $0.62 or 0.9 percent to settle
at $70.91 barrel on the New York Mercantile Exchange. August Brent crude gained
$0.30 or 0.4 percent to settle at $72.82 a barrel on London's Intercontinental
Exchange.
Indian rupee ended marginally
weaker against the US dollar on Friday, on increased demand for the greenback
from importers and banks. Investors were concerned as US think-tank observed
that India's domestic challenges due to COVID-19 crisis have become a threat to
its regional and global ambitions. It warned that unless it recovers with the
help of allies like the United States, the pandemic could impact the
geopolitical balance in the Indo-Pacific. However, downfall remain capped with
credit rating agency Icra Ratings' report that the country's gross domestic
product (GDP) will grow at 8.5 per cent in FY2021-22, with decline in number of
fresh COVID-19 cases and easing of restrictions. On the global front, dollar
index edged down on Friday and major currency pairs were stuck within recent
ranges as markets shrugged off Thursday's high U.S. inflation number, believing
the Federal Reserve's stance that it is likely to be a temporary blip. Finally,
the rupee ended 73.07, weaker by 1 paise from its previous close of 73.06 on
Thursday.
The FIIs as per Friday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 7695.23 crore against gross selling of Rs 6252.80 crore, while
in the debt segment, the gross purchase was of Rs 3214.45 crore with gross
sales of Rs 2163.46 crore. Besides, in the hybrid segment, the gross buying was
of Rs 24.22 crore against gross selling of Rs 28.35 crore.
The US markets ended higher on
Friday led by gains in the Technology, Consumer Services and Consumer Goods
sectors. Asian markets are trading mixed on Monday with multiple major markets
in the region are closed for holidays. Indian markets ended at record closing
highs on Friday led by IT, metal and pharma stocks, as more states eased
pandemic restrictions. Today, the start of new week is likely to be pessimistic
amid muted cues from global markets. Investors will be eyeing the both the CPI
and WPI inflation for the month of May to be released later in the day. There
will be some cautiousness as the Goods and Services Tax (GST) Council, at its
single-agenda meeting, decided to retain the GST on Covid-19 vaccines at 5 per
cent. However, it temporarily slashed the tax rates on most supplies and also
exempted drugs for treating the black fungus. Though, fall in coronavirus cases
may support the sentiments in the markets. India, witnessing a downward trend
in Covid cases, reported the lowest daily spike in infections since March 31
with 67,290 new cases in the last 24 hours. India has so far logged over
29,506,328 cases of coronavirus. Some support may also come as overseas
investors pumped in a net Rs 13,424 crore so far in June as risk-on sentiment
improved with declining Covid-19 cases and hopes of early opening of economy.
Depositories data showed that foreign portfolio investors (FPIs) invested Rs
15,520 crore in equities during June 1-11. Besides, the government data showing
that the Index of Industrial Production (IIP) stood at 126.6 points in April
this year. The IIP was at 54 points in April 2020 and 126.5 points in April
2019. As per the partial data, IIP growth works out to be 134 per cent in April
2021 over the same month last year, mainly due to the low base effect. Traders
may take note of NITI Aayog CEO Amitabh Kant's statement that it will not be
business as usual after the COVID-19 pandemic and we need to bring more
simplicity in the ease of doing business by doing away with the current maze of
rules. There will be some buzz in housing
finance companies stocks with report that home loans sanctioned by finance
companies, including housing finance firms, grew 76 per cent to Rs 79,043 crore
in the quarter ended March 2021 over Rs 44,907 crore in Q4FY20. There will be
some reaction in broadcasting and cable sector stocks as the Telecom Regulatory
Authority of India (TRAI) released an amendment to interconnection regulations
of 2017 which provides for a framework for technical compliance of conditional
access system (CAS) and subscriber management system (SMS) for the broadcasting
and cable sector. Meanwhile, the IPO market is getting back on track after a
lull of two months, with four companies launching their initial share-sales to
raise Rs 9,123 crore collectively. Separately, BSE and NSE will suspend trading
in the shares of Dewan Housing Finance Corporation (DHFL) with effect from
Monday.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,799.35
|
15,754.25
|
15,840.00
|
BSE
Sensex
|
52,474.76
|
52,361.97
|
52,614.55
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Coal
India
|
617.28
|
162.25
|
157.60
|
165.95
|
Tata
Motors
|
364.41
|
350.00
|
345.26
|
353.81
|
State
Bank of India
|
268.31
|
429.40
|
424.60
|
434.85
|
ITC
|
214.24
|
208.00
|
207.01
|
209.71
|
Oil
& Natural Gas Corporation
|
183.60
|
123.60
|
121.86
|
125.96
|
TCS has expanded its strategic partnership with Virgin Atlantic, one of the UK's leading airlines, to help the latter embark on a new phase of recovery and growth.
Tata Motors has launched its latest Ace Gold TVC paying tribute to India's business owners and showcasing the opportunities for the youth of India in the last-mile delivery segment.
Coal India has removed the restriction on exporting coal procured through two spot auctions.
Reliance Industries has shut a secondary unit at its only-for-exports oil refinery at Jamnagar in Gujarat, which may delay shipment of some product cargoes.