Daily Newsletter
NSE Intra-day chart (11 June 2021)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
 
Market Commentary 14 June 2021
Benchmarks likely to make negative start ahead of CPI, WPI data

 

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.
News Analysis