Indian equity benchmarks ended
higher for the second straight session on Tuesday, led by broad-based gains
amid a rebound in the global equities. Key gauges made gap-up opening and
traded in fine-fettle in early deals as traders took some solace with a private
survey report indicating that Indian consumers are concerned about rising costs
but 71 per cent of them believe the economy will recover within a year. Foreign
fund inflows also aided the domestic sentiments. Foreign institutional
investors (FIIs) have net bought shares worth Rs 312.31 crore on September 19,
as per provisional data available on the NSE.
Traders took a note of the watchdog - Insolvency and Bankruptcy Board of
India (IBBI) has amended its regulations to allow sale of one or more assets of
an entity undergoing insolvency resolution process, besides other changes. This
move will provide better market-linked solutions for stressed companies.
Bourses maintained healthy gains in late afternoon session, taking support from
reports that the commerce and industry ministry is planning a multi-media
campaign to promote over 400 GI (Geographical Indication) products such as
Darjeeling Tea, Chanderi Fabric, Mysore Silk, and Kashmir Walnut Wood Carving.
It added this would further increase employment avenues for the producers and
boost the economy. Some optimism also came after report stated that India and
Saudi Arabia have discussed the feasibility of institutionalizing trade in
rupee and riyal and the introduction of UPI (Unified Payment Interface) and
RuPay card there. Diversification and expansion of trade and commerce, removal
of trade barriers, automatic registration and marketing authorization of Indian
pharma products in Saudi Arabia, feasibility of institutionalizing Rupee-Riyal
trade, introduction of UPI and Rupay cards in Saudi Arabia; were amongst the
key points of discussion. Finally, the BSE Sensex rose 578.51 points or 0.98%
to 59,719.74 and the CNX Nifty was up by 194.00 points or 1.10% to 17,816.25.
The US markets ended lower on
Tuesday as traders seemed jittery ahead of the Federal Reserve's monetary
policy decision on Wednesday. The Fed is widely expected to raise interest
rates by another 75 basis points, although some see an outside chance for a 100
basis point rate hike. Further, treasury yields saw upside ahead of the Fed
announcement, with the yield on the benchmark ten-year note jumping to a new
eleven-year high. Several of other major central banks around the world are
also scheduled to announce their latest monetary policy decisions this week, including
the Bank of England and the Bank of Japan. Besides, a notable drop by shares of
Ford (F) also weighed on Wall Street, with the auto giant plunging by 12.3
percent to its lowest closing level in almost two months. The pullback by Ford
comes after the company warned inflation-related supplier costs during the
third quarter will run about $1.0 billion higher than originally expected. On
the economic data front, the Commerce Department released a report showing an
unexpected spike in new residential construction in the US in the month of
August, although the report also showed a steeper than expected slump in
building permits. The report showed housing starts soared by 12.2 percent to an
annual rate of 1.575 million in August after plunging by 10.9 percent to a
revised rate of 1.404 million in July. The sharp increase surprised
participants, who had expected housing starts to edge down by 0.1 percent to an
annual rate of 1.445 million from 1.446 million originally reported for the
previous month. On the sectoral front, Gold stocks turned in some of the
market's worst performances on the day, dragging the NYSE Arca Gold Bugs Index
down by 3.0 percent.
Crude oil futures ended lower
with cut of one and half percent on Tuesday on concerns about interest rate hikes
and worries about the outlook for energy demand. The outlook for energy demand
is somewhat weak as it is feared that aggressive interest rate hikes by central
banks might hurt growth, which in turn will result in a drop in demand for oil. Further, a firm dollar amid expectations of a
sharp interest rate hike by the Federal Reserve on Wednesday weighed on oil
prices. Benchmark crude oil futures for October delivery fell $1.28 or 1.5
percent at $84.45 a barrel on the New York Mercantile Exchange. Brent crude for
November delivery dropped $1.42 or about 1.7 percent to settle at $83.94 a
barrel on London's Intercontinental Exchange.
The rupee settled higher against
the US dollar on Tuesday as investors await the US Fed's policy statement for
further cues. Traders took solace as foreign institutional investors (FIIs)
have bought (net) shares worth Rs 312.31 crore on September 19, as per
provisional data available on the NSE. Additional support came with private
survey report indicating that Indian consumers are concerned about rising costs
but 71 per cent of them believe the economy will recover within a year. On the
global front, pound was little changed against the dollar on Tuesday, hovering
barely above its lowest level since 1985, ahead of expected interest rate hikes
from the Bank of England (BoE) and Federal Reserve (Fed). Finally, the rupee
ended at 79.74 (Provisional), stronger by 7 paisa from its previous close of
79.81 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 18042.20 crore against gross selling of Rs
17309.95 crore, while in the debt segment, the gross purchase was of Rs 266.47
crore against gross selling of Rs 267.12 crore. Besides, in the hybrid segment,
the gross buying was of Rs 236.22 crore against gross selling of Rs 222.61 crore.
The US markets ended lower on
Tuesday as the eve of a U.S. Federal Reserve meeting expected to bring another
large interest rate hike brought further evidence of the impact on corporate
America from the inflation that the U.S. central bank wants to tame. Asian
markets are trading mostly in red on Wednesday following Wall Street's negative
lead ahead of the Federal Reserve's expected rate hike. Indian markets ended
with strong gains on Tuesday with firm global cues and steady foreign flows.
Gains in financial, healthcare, consumer durables and auto stocks, also
supported the indices. Today, markets are likely to get weak start, following
two back-to-back days of gains, amid lackluster trade in global markets ahead
of a key rate decision by the Fed. Traders will be concerned as retail
inflation for farm and rural workers increased to 6.94 per cent and 7.26 per
cent, respectively, in August mainly due to higher prices of certain food
items. In July, retail inflation for farm and rural workers stood at 6.60 per
cent and 6.82 per cent respectively. There will be some cautiousness as chief
economic advisor V Anantha Nageswaran said Indian economy will grow at over 7
per cent, down from above 8 per cent of growth rate projected in January. He,
however, said that the economic momentum and the animal spirits are
unmistakable. Though, foreign fund inflows likely to aid domestic sentiments.
Foreign institutional investors (FIIs) have net bought shares worth Rs 1,196.19
crore on September 20, as per provisional data available on the NSE. Some
respite may come later in the day chairman of National Bank for Financing
Infrastructure and Development K V Kamath said India is expected to be a
$25-trillion economy in 25 years. He said the Indian economy is growing at a
compound annual growth rate of 8-10 per cent. Some support may come as Chief
Economic Advisor V. Anantha Nageswaran said India's fintech market is expected
to reach $1 trillion by 2030, from $31 billion in 2021. Meanwhile, the
government has extended the last date for the export of broken rice in transit
till September 30. It was earlier allowed till September 15. Traders may take
note of report that Commerce and Industry Minister Piyush Goyal has said the
government was working on production-linked incentive (PLI) schemes for more
products to boost manufacturing in India. The government had rolled out PLI
schemes for 15 key sectors, including technology, textile, automobile,
pharmaceutical drugs, speciality steel, electronics, among others. There will
be some reaction in medical devices industry stocks as the Union government
notified the Medical Devices Rules as Medical Devices (Amendment) Rules, 2022.
The Rules made provisions for all class A medical device manufacturers to
register themselves through an identified online portal established for the
purpose.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,816.25
|
17,734.00
|
17,908.90
|
BSE
Sensex
|
59,719.74
|
59,482.51
|
60,031.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
521.40
|
106.05
|
104.59
|
106.94
|
Tata Motors
|
175.57
|
434.80
|
429.15
|
441.90
|
NTPC
|
153.95
|
171.40
|
170.49
|
172.74
|
Power Grod corpota
|
151.22
|
232.50
|
230.99
|
235.14
|
Oil & Natural Gas Corporation
|
130.80
|
132.95
|
131.64
|
133.94
|
ONGC has entered into Memorandum of understanding with Chevron New Ventures PTE, subsidiary of Chevron Corporation.
Tata Motors has launched 5W30 synthetic engine oil developed specially to boost the performance of the new-generation BS6 diesel engines.
Infosys has collaborated with Telenor Norway, in its business transformation program to become a digital telecommunications company.
Tech Mahindra has launched YANTR.AI - a transformational cognitive Artificial Intelligence solution to enhance and simplify field services.