Indian equity benchmarks extended
their winning streak to the fourth straight session and ended with gains of
more than half percent on Tuesday as bulls took control amid the brighter mood
in global markets. Equities opened on a strong note and maintained gain
throughout the day, as sentiments got a boost with commerce and industry
minister Piyush Goyal's statement that Indian rupee has shown more resilience
than most of the other currencies in recent years and the compounded average
growth rate of depreciation is lower as compared to pre-2014. Some optimism
also came in as India's agricultural and processed food products exports rose
by 30% to $9.6 billion during April-July this fiscal. Besides, foreign fund
inflows aided sentiments in markets. As per data available on the NSE, FIIs net
bought shares worth Rs 2,049.65 crore on September 12. Key gauges extended
gains in late afternoon deals, taking support from the Finance Ministry has
attributed the rise in inflation to base effect and increase in food and fuel
prices, and stressed that initiatives taken by the government to curb price
rise will be felt more significantly in the coming months. Additional support
came with country's chief economic adviser, V. Anantha Nageswaran stated that India
does not need to defend the rupee because its economic fundamentals are such
that the currency can take care of itself. Sentiments remained upbeat even
after India's retail inflation rate rose to 7% from 6.7% in the previous month,
driven by a surge in food prices. Also, India's industrial production growth
decelerated to a four-month low of 2.4% in July, mainly due to poor showing by
manufacturing, power and mining sectors. Finally, the BSE Sensex rose 455.95
points or 0.76% to 60,571.08 and the CNX Nifty was up by 133.70 points or 0.75%
to 18,070.05.
The US markets ended deeply in
red on Tuesday following the release of the Labor Department's highly
anticipated report on consumer price inflation in the month of August. The
report showed an unexpected monthly uptick in consumer prices as well as a
smaller than expected slowdown in the annual rate of price growth. The Labor
Department said its consumer price index inched up by 0.1 percent in August
after coming in unchanged in July. Street had expected consumer prices to edge
down by 0.1 percent. The modest increase in consumer prices came as higher
prices for shelter, food and medical care offset another steep drop in gasoline
prices. Compared to the same month a year ago, consumer prices were up by 8.3
percent in August, reflecting a slowdown from the 8.5 percent spike in July.
However, Street had expected the annual rate of growth to slow to 8.1 percent. The
report also showed core consumer prices, which exclude food and energy prices,
climbed by 0.6 percent in August after rising by 0.3 percent in July. Core
prices were expected to increase by another 0.3 percent. Meanwhile, the annual
rate of growth by core consumer prices accelerated to 6.3 percent in August
from 5.9 percent in July. The annual rate of growth was expected to rise to 6.1
percent. The data led to renewed concerns about the outlook for interest rates
ahead of the Federal Reserve's monetary policy meeting next week. On the
sectoral front, semiconductor stocks turned in some of the market's worst
performances on the day, resulting in a 6.2 percent nosedive by the
Philadelphia Semiconductor Index. Interest rate-sensitive housing stocks also
saw substantial weakness, as reflected by the 5.9 percent plunge by the
Philadelphia Housing Sector Index.
Crude oil futures ended lower on
Tuesday as a stronger-than-expected reading on U.S. inflation helped strengthen
the dollar and raise the likelihood of higher interest rates, which can dull
demand for energy. Data showed the consumer-price index edged up by 0.1% in
August, while street had forecast a 0.1% drop. The so-called core rate of
inflation that omits food and energy prices rose by a sharp 0.6%. The report revealed
that inflation has spread more broadly through the economy and is set to spur
the Federal Reserve to sharply raise interest rates again. Benchmark crude oil
futures for October delivery fell $0.47 or about 0.5 percent to settle at
$87.31 a barrel on the New York Mercantile Exchange. Brent crude for November
delivery dropped $0.83 or about 0.9 percent to settle at $93.17 a barrel on
London's Intercontinental Exchange.
Indian rupee ended substantially
stronger on Tuesday on fresh selling of American currency by banks and
exporters. Sentiments were upbeat as India's agricultural and processed food
products exports rose by 30% to $9.6 billion during April-July this fiscal.
Traders remain energized with Finance Minister Nirmala Sitharaman's statement
that many countries have evinced interest for bilateral trade in the rupee
after the RBI announced a mechanism recently. Strong gains in domestic equity
markets also provided support to the domestic currency. On the global front,
dollar eased further on Tuesday ahead of U.S. inflation data that could show
some signs of softening. Finally, the rupee ended at 79.17 (Provisional),
stronger by 36 paisa from its previous close of 79.53 on Monday.
The FIIs as per Tuesday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 6594.83 crore against gross selling of Rs
4898.43 crore, while in the debt segment, the gross purchase was of Rs 562.08 crore
against gross selling of Rs 850.12 crore. Besides, in the hybrid segment, the
gross buying was of Rs 3.66 crore against gross selling of Rs 5.84 crore.
The US markets ended sharply
lower on Tuesday after the latest inflation data in the world's largest economy
showed a less-than-expected moderation in the price-rise index that's at a
multi-decade high. Asian markets are trading in red on Wednesday as a white-hot
US inflation report dashed hopes for a peak in inflation and fuelled interest
rate hike bets. Indian markets ended higher on Tuesday thanks to sustained
inflows from foreign portfolio investors (FPIs) and positive global cues.
Today, markets are likely to make gap-down opening tracking sell-off in global
markets. Investors will closely track the WPI inflation reading for August.
There will be some cautiousness with a private report that investments by
private equity and venture capital funds plummeted 80 per cent to $2.2 billion
in August, a 19-month low. Traders will be concerned as OECD said India's gross
domestic product (GDP) in the June quarter contracted 1.4 per cent
quarter-on-quarter, when adjusted for seasonality, and was the second worst
performance among the G20 countries - the first being China. However, some
support may come later in the day as Finance Minister Nirmala Sitharaman said
many countries have evinced interest for bilateral trade in the rupee after the
RBI announced a mechanism recently. She said this along with other steps taken
by the government is towards full capital account convertibility. Traders may
take note of report that Chief Economic Advisor V Anantha Nageswaran said India
is not defending the rupee and the Reserve Bank of India is taking necessary
steps to ensure that the movement of the rupee is gradual and in line with
market trends. Besides, foreign institutional investors (FIIs) net bought
Indian equities worth Rs 1,956.98 crore on September 13, as per data available
on the NSE. Meanwhile, the borrowing cost for the states fell for the fourth
consecutive week as the weighted average cut-off eased 6 basis points (bps) to
7.46 per cent at the weekly auctions on Tuesday. Fertilizer industry stocks
will be in focus as Union Chemicals and Fertilisers Minister Mansukh Mandaviya
said there is no shortage of crop nutrients in the country and asserted that
there will be no hike in the prices of non-urea products. The minister also
said that Nutrient Based Policy (NBS) for Phosphatic and Potassic (P&K)
fertilisers for the Rabi season (October 2022 to March 2023) will be announced
shortly. There will be some reaction in insurance companies stocks as easing
compliance burden for insurers, regulator Irdai rationalised health insurance
business returns reporting norm by reducing the number of returns that need to
be filed in a year. Besides, the initial public offering (IPO) of Harsha
Engineers International, opens today. The precision bearing cages manufacturer
has set a price band of Rs 314-330 per share for its maiden public issue which
will remain open for subscription till Friday, September 16. The company plans
to raise Rs 755 crore through this IPO.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,070.05
|
18,027.56
|
18,100.41
|
BSE
Sensex
|
60,571.08
|
60,422.98
|
60,677.24
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
441.79
|
107.85
|
107.36
|
108.51
|
State Bank of India
|
167.07
|
557.10
|
553.90
|
560.15
|
NTPC
|
156.44
|
167.35
|
165.69
|
168.99
|
Oil & Natural Gas Corporation
|
108.46
|
133.85
|
133.19
|
134.84
|
Tata Motors
|
106.61
|
456.90
|
453.99
|
459.39
|
Reliance Industries' telecom arm -- Jio has received a letter of intent for its satellite unit from the Telecom Department for satellite communication services.
HDFC Bank has become the first bank in the country to issue an Electronic Bank Guarantee in partnership with National E-Governance Services.
TCS is partnering with the People's Association, to launch the Alliance for Community Empowerment, to empower and support sustainable communities in Singapore.
Axis Bank and Square Yards have launched Open Doors, a novel, co-branded Home Buyer Ecosystem.