Indian equity
benchmarks ended on a flat note for second straight session on Thursday. After
making cautious start, markets gained momentum as traders took some support
with finance minister Nirmala Sitharaman's statement that State-run banks will
undertake a nation-wide loan outreach programme around October, as the
government seeks to stir economic growth through sustained credit push,
especially to Covid-hit small and medium businesses, retail and farm sectors,
amid fears that bankers have turned risk-averse. Domestic sentiments were
positive with Union Heavy Industries Minister Mahendra Nath Pandey's statement
that the government is working on establishing charging infrastructure across
the country in order to promote faster adoption of electric vehicles (EVs) in
the country. Some optimism also came
with Union minister Nitin Gadkari's statement that the government looks to
increase the contribution of the automobile sector to India's GDP to 12 per
cent from the present 7.1 per cent and grow employment generation to 50 million
from the current 37 million. The breadth of the market remained positive in
late morning session with private report stating that the Indian economic
growth likely to touch record high in the quarter through June, reflecting a
very weak base last year and a rebound in consumer spending. The rebound came
despite the drag from the deadly second wave of the coronavirus, which forced
states across India to reimpose localised lockdowns and stop mobility
completely from late April to early June. However, markets erased initial gains
and turned volatile in second half of the session, as traders turned cautious
with rating agency Moodys stating that India's second Coronavirus (Covid-19)
wave is increasing asset risks for banks in retail and the SME loan segment.
However, factors like tight credit underwriting, strong loss provisions will
help banks withstand pressures and prevent a sharp rise in bad loans. Finally,
the BSE Sensex rose 4.89 points or 0.01% to 55,949.10, while the CNX Nifty was
up by 2.25 points or 0.01% to 16,636.90.
The US markets ended lower on
Monday as investors stayed quite wary of making significant moves as they
looked ahead to comments from Fed officials at the annual Jackson Hole
symposium on Friday. The attack by suicide bombers near Kabul airport that
resulted in the death of 12 US services members, and injuries to several others
hurt sentiment. Traders also reacted to President of the St. Louis Fed James
Bullard's comments that he is of the view that the central bank should start
tapering bond purchases in the fall and finish the process by the first quarter
of next financial year. He has also called for a rate hike by end 2022. On the
economic data front, first-time claims for US unemployment benefits edged
slightly higher in the week ended August 21st, according to a report released
by the Labor Department. The report said initial jobless claims inched up to
353,000, an increase of 4,000 from the previous week's revised level of
349,000. Street had expected jobless claims to tick up to 350,000 from the
348,000 originally reported for the previous week. Meanwhile, a report from the
Bureau of Economic Analysis said the US economy advanced an annualized 6.6
percent on quarter in the second quarter, slightly higher than an earlier
estimate of 6.5 percent. However, the increase was below the 6.7 percent
increase analysts had forecast.
Crude oil futures ended lower on
Thursday on worries about outlook for energy demand due to a surge in
coronavirus cases in several countries. Besides, the return of output in Mexico
also weighed on oil prices. Pemex said it has restored nearly 20% of the more
than 400,000 bpd in oil production it lost due to a fire that erupted on an
offshore platform on Sunday. Crude oil futures for October fell $0.94 or 1.4
percent to settle $67.42 barrel on the New York Mercantile Exchange. October
Brent crude dropped $1.03 or 1.45 percent to settle at $70.25 a barrel on
London's Intercontinental Exchange.
Indian rupee ended marginally
higher against dollar on Thursday, on persistent selling of the American
currency by exporters. Traders took some support with private report stating
that the Indian economic growth likely to touch record high in the quarter
through June, reflecting a very weak base last year and a rebound in consumer
spending. The rebound came despite the drag from the deadly second wave of the
coronavirus, which forced states across India to reimpose localised lockdowns
and stop mobility completely from late April to early June. However, gains
remain capped as India recorded a massive spike of 46,307 new Covid-19 cases in
the past 24 hours out of which, over 31,000 were from Kerala. On the global
front, dollar rose from one-week lows on Thursday, supported by U.S. Treasury
yields holding above 1.34% in a quiet market where the focus was firmly trained
on what signals the Federal Reserve might send at its annual Jackson Hole
conference. Finally, the rupee ended 74.22, stronger by 2 paise from its
previous close of 74.24 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity segment and net buyer in debt segment. In equity
segment, the gross buying was of Rs 6896.77 crore against gross selling of Rs
7783.96 crore, while in the debt segment, the gross purchase was of Rs 11306.69
crore with gross sales of Rs 512.91 crore. Besides, in the hybrid segment, the
gross buying was of Rs 12.75 crore against gross selling of Rs 20.84 crore.
The US markets ended lower on
Thursday as the situation in Afghanistan escalated with an explosion near the
Kabul airport and comments from FOMC members favoured tapering by the Federal
Reserve. Asian markets are trading mixed on Friday as slight gains in China
were balanced by declines elsewhere and investors globally turned cautious
ahead of a long-awaited speech by Fed Chair Jerome Powell. Indian markets
closed flat for the second day straight on Thursday but remain within touching
distance of all-time highs, amid the F&O expiry of the August series. Today,
the markets are likely to make flat-to-positive start amid mixed Asian cues.
Some support will come as Finance Minister Nirmala Sitharaman discussed with
her BRICS counterparts the key areas of cooperation that would be crucial in
supporting recovery of the grouping's economies and maintaining macroeconomic
stability, while protecting against future uncertainties posed by the COVID-19
pandemic. However, jitters over the US Federal Reserve's Jackson Hole Symposium
compounded with twin blasts in Afghanistan may keep upside in check. Traders
may be concerned as Moody's Investors Service said second wave of Covid
infections has increased asset risks for Indian banks, but a severe
deterioration is unlikely. It said that the second wave of coronavirus
infections in India has exacerbated stress among individuals and small
businesses that were hit the hardest by the initial outbreak. Still, a number
of factors will prevent sharp increases in problem loans, and banks have
sufficient buffers to absorb anticipated loan losses. Also, Foreign
Institutional Investors (FII) were net sellers of domestic equities for the 8th
consecutive trading session yesterday. FIIs pulled out Rs 1,974 crore from
domestic markets. Besides, India recorded a spike of 44,558 new Covid-19 cases
in the past 24 hours out of which, over 31,000 were from Kerala. Meanwhile, Markets regulator Sebi came out
with detailed modalities for implementation of the accredited investors
framework, a move expected to open up a new channel of raising funds from sophisticated
investors. Aviation stocks will be in
focus as India's air safety regulator said it had cleared Boeing Co's 737 MAX
aircraft to fly with immediate effect, ending its nearly two-and-a-half-years
of regulatory grounding in a key travel market for Boeing. There will be some
reaction in tobacco industry stocks as Indian Tobacco Association said it has
urged the government to include tobacco under the tax rebate scheme RoDTEP
(Remission of Duties and Taxes on Exported Products) with an aim to encourage
exports from the sector. Besides, Two IPOs will open for subscription next
week, continuing the IPO rush on Dalal Street. Ami Organics IPO along with that
of Vijaya Diagnostic Centre. While the latter is looking to raise Rs 1,895
crore from the IPO, the former's public issue will include a fresh issue of
equity shares worth Rs 200 crore and an offer-for-sale (OFS) of up to 60.59
lakh equity shares.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,636.90
|
16,598.96
|
16,679.26
|
BSE
Sensex
|
55,949.10
|
55,831.31
|
56,089.63
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Bharti Airtel
|
258.31
|
586.90
|
576.96
|
604.16
|
Tata Motors
|
178.64
|
284.30
|
281.51
|
287.21
|
State Bank of India
|
158.97
|
410.75
|
408.56
|
414.36
|
Adani Ports and Special Economic Zone
|
149.69
|
721.70
|
715.26
|
730.56
|
ITC
|
148.36
|
204.60
|
203.69
|
206.19
|
Infosys is planning to establish a new digital development centre at its largest Canadian office in Mississauga.
Bharti Airtel is planning to raise funds through equity or equity-linked or debt instruments or any combination thereof.
Kotak Mahindra Bank's subsidiary -- Kotak Securities has launched three new Ace Portfolios- a collection of curated smallcase portfolios for retail investors.
Wipro has entered into strategic partnership with DataRobot, a leader in Augmented Intelligence.