Indian equity
benchmarks snapped their two-day losing streak and ended the session in green
terrain on Monday led by gains in TECK, IT and Telecom stocks. Indices opened a
day with gap up, as traders took encouragement with the government stating that
the country's agri-exports are estimated to grow 15% in FY22, adding that
export of products like rice, meat, cereals and dairy items rose 44.3% on-year
to $4.81 billion during April-June 2021. Their exports were $3.33 billion in
the year ago period. Sentiments were upbeat as investments in the Indian
capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh
crore till July-end, making it the highest level in last 40 months. This also
marks the fourth consecutive monthly growth. However, benchmarks soon erased
gains as traders got anxious with RBI Governor Shaktikanta Das' statement that
the resurgence in inflation in May and June above the upper threshold has
reignited the debate on the appropriate monetary policy response. Some concern
also came as RBI data showed India's foreign exchange reserves decreased by
$2.099 billion to stand at $619.365 billion for the week ended August 13 due to
a fall in core currency assets and gold. During the late morning session, key
indices came back in green, as Crisil Ratings revised the credit quality
outlook of India Inc for fiscal 2022 to positive from cautiously optimistic
earlier, predicated on a sustained recovery in demand after the blip caused by
the second wave of Covid-19 afflictions in the first quarter. The increase in
coverage of vaccinations should also mitigate the impact of a third wave if it
comes about. In another positive development, , Retirement fund body,
Employees' Provident Fund Organisation (EPFO) in its latest Provisional
Estimate of Net Payroll data report has showed that India created 1283448 new
jobs in the month of June 2021. Traders took a note of Icra Ratings' report
that despite the massive windfall gains from fuel taxes and GST collections,
the Centre continues to borrow heavily from the market, with the total drawdown
crossing 90 per cent of the notified amount so far or 46 per cent of the total
borrowings for FY22, even though the second quarter is only halfway. Finally, the
BSE Sensex rose 226.47 points or 0.41% to 55,555.79, while the CNX Nifty was up
by 45.95 points or 0.28% to 16,496.45.
The US markets ended higher on
Monday with several counters from across various sectors attracting buyers.
Firm commodity prices and the US drug regulator's nod to a Pfizer-BioNTech
coronavirus vaccine aided sentiment. Technology stocks had a good outing once
again, and contributed significantly to the fairly buoyant mood in the market.
Energy stocks gained ground in positive territory as crude oil prices rose
sharply. Among the gainers, Boeing, Chevron, Caterpillar and Intel moved up 2
to 3 percent. Salesforce.com, Honeywell International, Nike, JP Morgan Chase,
Walt Disney, American Express and Amgen also ended notably higher. Meanwhile,
investors awaited the Federal Reserve's annual Jackson Hole conference later in
the week for clues on possible asset purchase tapering timeline. On the
economic data front, data from National Association of Realtors (NAR) said
existing home sales in the US increased by 2% month-on-month to 5.99 million in
July, beating forecasts for a rise to 5.83 million.
Crude oil futures ended sharply
higher on Monday, snapping a seven-day losing streak and posting their biggest
single-session gain in percentage terms in about five months. Optimism about
growth, and a weak dollar contributed to oil's sharp uptick. The move up for
oil came despite Monday's announcement by the US Energy Department that it
plans to sell up to 20 million barrels of crude oil from the nation's Strategic
Petroleum Reserve. Contracts will be awarded no later than September 13 with
delivery to take place between October 1 and December 15. Crude oil futures for
October surged $3.50 or 5.6 percent to settle $65.64 barrel on the New York
Mercantile Exchange. October Brent crude gained $3.57 or 5.5 percent to settle
at $68.75 a barrel on London's Intercontinental Exchange.
Indian rupee ended stronger
against dollar on Monday due to fresh selling of the American currency by banks
and exporters. Besides, healthy growth in the domestic equity markets added to
the rupee gains. Traders were positive, amid reports that foreign portfolio
investors (FPI) have pumped in a net Rs 7,245 crore into the Indian capital
markets in August so far amid positive sentiments due to an improving
macroeconomic environment. Sentiments were upbeat as Crisil Ratings revised the
credit quality outlook of India Inc for fiscal 2022 to positive from cautiously
optimistic earlier, predicated on a sustained recovery in demand after the blip
caused by the second wave of Covid-19 afflictions in the first quarter. The
increase in coverage of vaccinations should also mitigate the impact of a third
wave if it comes about. On the global front; sterling edged up against the
dollar and was flat against the euro on Monday, as risk sentiment across
markets recovered somewhat after global growth worries sparked a broad selloff
last week. Finally, the rupee ended 74.22, stronger by 17 paise from its
previous close of 74.39 on Friday.
The FIIs as per Monday's data were
net buyer in both equity and debt segment. In equity segment, the gross buying
was of Rs 11894.12 crore against gross selling of Rs 11376.90 crore, while in
the debt segment, the gross purchase was of Rs 654.88 crore with gross sales of
Rs 571.32 crore. Besides, in the hybrid segment, the gross buying was of Rs
263.81 crore against gross selling of Rs 143.38 crore.
The US markets ended higher on
Monday on stronger-than-expected home sales data and full regulatory approval
of Pfizer's Covid-19 vaccine. Asian markets are trading mostly in green on
Tuesday on an extended bounce on Wall Street as investors drew comfort from
full approval granted to the Pfizer/BioNTech vaccine and on easing worries of
an imminent tapering of stimulus by the Federal Reserve. Indian markets rose in
tandem with global stocks on Monday as bargain buying returned to the Street.
Today, the markets are likely to continue previous session's gaining momentum
with positive start tracking firm global cues. Sentiments will get a boost as
Commerce and Industry Minister Piyush Goyal said foreign direct investments
into the country is on the rise, jumping to $12.1 billion in May this year. He
also said the government is working on a mission mode to achieve exports target
of $400 billion in 2021-22. Some support will also come as Icra Ratings' report
said with the easing of COVID-19-related restrictions by the states, the roots
of the economic recovery deepened in July 2021. The report said the unlocking
in the country has manifested itself in improving performance across various
high frequency industrial and service sector indicators, mobility and toll
collections in July 2021. However, there may be some cautiousness with a
private report that the government said summer-sown crop planting in India has
been lagging as the country received below-normal rainfall, raising concerns
about food grain production in Asia's third biggest economy. Also, a private
report stated that India's volatile and below-normal monsoon rainfall may
create challenges for inflation and economic growth in rural areas over the
medium-term. Meanwhile, India recorde11,359 new Covid-19 cases and 266 deaths
in the past 24 hours, taking its tally to 32,460,328 and the death toll to
434,784. Infrastructure industry stocks will be in focus as Finance Minister
Nirmala Sitharaman announced a Rs 6 lakh crore National Monetisation Pipeline
(NMP) that will look to unlock value in infrastructure assets across sectors
ranging from power to road and railways. There will be some reaction in coal
industry stocks as the government identified 160 coal mining assets worth an
estimated at Rs 28,747 crore for monetisation over four years till FY25.
Besides, Chemplast Sanmar and Aptus Value Housing Finance India will make their
stock market debut on bourses on August 24. Chemplast Sanmar will re-list on
the stock market after being delisted from the exchanges nearly a decade ago.
The Rs 3,850-crore IPO of Chemplast Sanmar was subscribed 2.17 times. While
Aptus Value Housing Finance was subscribed 17.20 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,496.45
|
16,397.26
|
16,594.06
|
BSE
Sensex
|
55,555.79
|
55,270.33
|
55,811.21
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State Bank of India
|
265.59
|
409.50
|
402.84
|
414.59
|
Tata Motors
|
244.98
|
276.95
|
271.86
|
285.16
|
Tata Steel
|
229.25
|
1358.65
|
1,309.66
|
1,408.71
|
Oil & Natural Gas Corporation
|
168.86
|
111.75
|
109.50
|
113.00
|
Hindalco Industries
|
159.43
|
406.85
|
398.99
|
415.24
|
NTPC has successful commissioned 15 MW capacity at Floating Solar PV Project in Simhadri, Andhra Pradesh.
Tata Motors is planning to launch its mini SUV Punch in the ongoing festive season.
HCL Technologies has signed a contract with Munich Re to create a next-generation digital workplace for its workforce.
Reliance Industries' telecom arm -- Reliance Jio Infocomm has added 54,66,556 customers in June 2021.