Indian equity
benchmarks closed at record closing highs for the third consecutive session on
Thursday aided by gains in banking, energy and PSU stocks. Besides, a firm
global market mood and recently introduced reforms for the telecom and auto
sector pushed the indices to fresh peaks. Markets made positive opening, as
sentiments got boost with report that the United Nations Conference on Trade
and Development (UNCTAD) has pegged India's economic growth rate to hit a
four-year high of 7.2 per cent for 2021 against a contraction of 7 per cent in
2020. At this rate, India would be the fastest growing economy after China,
which is projected to grow by 8.3 per cent. Calculations are based on GDP at
constant dollars in 2015. Further, some support came in as defence Minister
Rajnath Singh said the trust between the government and the industry has gone
up following the scrapping of the retrospective taxation regime and the Centre
is open to new ideas to further boost the country's economic growth. Key
indices extended gains in afternoon session, as traders remained positive with
Niti Aayog Vice Chairman Rajiv Kumar's statement that the global economic
recovery is strengthening and this is the opportune moment for a change in the
world order. He emphasised that a new world order will usher in if the global
economy remains open. Additional support came with private report stating that
investments by private equity and venture capital funds surged to $10.7 billion
in August from $2.2 billion in the same month last year, and $9.7 billion in
July this year. Adding to the optimism, Retailers Association of India (RAI) in
its latest survey has said that retail sales improved in August and reached 88
percent of the pre-pandemic levels. In July, retail sales stood at 72 per cent
of the pre-pandemic levels of July 2019. Finally, the BSE Sensex rose 417.96
points or 0.71% to 59,141.16 and the CNX Nifty was up by 110.05 points or 0.63%
to 17,629.50.
The US
markets ended mostly lower on Thursday following report from the Labor
Department showed first-time claims for US unemployment benefits rebounded by
slightly more than expected in the week ended September 11th. The report said
initial jobless claims climbed to 332,000, an increase of 20,000 from the
previous week's revised level of 312,000. Street had expected initial jobless
claims to rise to 328,000 from the 310,000 originally reported for the previous
week. The modest increase came after initial jobless claims fell to their lowest
level since March of 2020 in the previous week. Meanwhile, a report from the
Commerce Department showed an unexpected rebound in US retail sales in the
month of August. The Commerce Department said retail sales climbed by 0.7
percent in August after plunging by a revised 1.8 percent in July. The rebound
surprised participants, who had expected retail sales to decrease by another
0.8 percent compared to the 1.1 percent slump originally reported for the
previous month. Excluding a continued nosedive in sales by motor vehicle and
parts dealers, retail sales surged up by 1.8 percent in August after tumbling
by a revised 1.0 percent in July. Street had expected ex-auto sales to edge
down by 0.2 percent compared to the 0.4 percent drop originally reported for the
previous month. While the rebound in retail sales partly reflected a shift back
to online spending amid the spread of the delta variant of the coronavirus, the
resilience shown by consumers may encourage the Federal Reserve to follow
through on plans to begin tapering its asset purchases later this year.
Crude
oil futures ended flat on Thursday after hitting a multi-week high a day
earlier as the threat to US Gulf crude production from Hurricane Nicholas
receded. Traders remained cautious on concerns over China's decision to release
some crude oil from its strategic petroleum reserve. China said last week that
it plans to release oil from its strategic reserve in order to better stabilize
domestic market supply and demand, and effectively guarantee the country's
energy security. Crude oil futures unchanged to settle at $72.61 barrel on the
New York Mercantile Exchange. November Brent crude rose 21 cents or 0.3 percent
to settle at $ 75.67 a barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against
the US dollar on Thursday, on increased demand for the greenback from importers
and banks. Traders seem to have overlooked report that United Nations
Conference on Trade and Development (UNCTAD) has pegged India's economic growth
rate to hit a four-year high of 7.2 per cent for 2021 against a contraction of
7 per cent in 2020. At this rate, India would be the fastest growing economy
after China, which is projected to grow by 8.3 per cent. Meanwhile, defence
Minister Rajnath Singh said the trust between the government and the industry
has gone up following the scrapping of the retrospective taxation regime and
the Centre is open to new ideas to further boost the country's economic growth.
On the global front; sterling rose against the euro and fell versus the dollar
on Thursday as traders assessed the Bank of England's next move after data
showed British inflation hit a more than nine-year high in August, fuelling
expectation of a rate increase. Finally, the rupee ended 73.52, weaker by 2 paise
from its previous close of 73.50 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity segment and net sellers in debt segment. In equity
segment, the gross buying was of Rs 9703.34 crore against gross selling of Rs
8870.73 crore, while in the debt segment, the gross purchase was of Rs 957.68
crore with gross sales of Rs 1057.20 crore. Besides, in the hybrid segment, the
gross buying was of Rs 1466.16 crore against gross selling of Rs 11.10 crore.
The US
markets ended mostly lower on Thursday as investors weighed mixed signals in
the latest US economic data. Asian markets are trading mostly lower in early
deals on Friday following mixed cues from US markets. Indian equity markets
settled at fresh closing highs on Thursday. Today, the start is likely to
remain jubilant and the markets will extend their gains encouraged by Union
Finance Minister Nirmala Sitharaman's statement that the National Asset
Reconstruction Company (NARCL) would be operational soon, and it had to ensure
resolving bad loans within five years, beyond which the guarantee to be issued
by the government would expire. The Cabinet approved a government guarantee of
Rs 30,600 crore to be provided for the security receipts issued by the NARCL to
buy bad loans of lenders. There will be some support as the Reserve Bank of
India (RBI) said the inflation trajectory is coming down faster than
anticipated and the inflation print of 5.3 per cent in August has proven the
monetary policy committee's (MPC) move to look through May's price shock as the
right call. Meanwhile, RBI in its latest article has said that the uptick in
the credit growth in the recent months notwithstanding the second COVID-19 wave
augurs well for the economy. Bank credit growth has witnessed significant fluctuations
in the past one and a half decades. It said the period between 2007-08 and
2013-14 could be characterised as a bank credit boom period in the Indian
economy, as non-food credit registered double-digit growth, primarily driven by
robust credit growth to the industrial sector. Traders may take note of report
that European Commission and the High Representative adopted a Joint
Communication on the EU Strategy for cooperation in the Indo-Pacific. This is
seen as a major development for the region ahead of the first in-person Quad
meeting in Washington next week, in which key players of the Indo-Pacific i.e.
India, Japan, Australia and the US are taking part. There will be some buzz in
aviation stocks on report that the Directorate General of Civil Aviation (DGCA)
said around 6.7 million domestic passengers travelled by air in August, 33.83
per cent higher than 5 million who travelled in July. The cap on capacity was
increased to 72.5 per cent from August 12. Earlier airlines could only operate
up to 65 per cent of their capacity. All airlines have reported an increase in
load factors.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,629.50
|
17,545.10
|
17,679.25
|
BSE
Sensex
|
59,141.16
|
58,826.34
|
59,330.13
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
149.24
|
230.30
|
219.85
|
237.20
|
Bharti Airtel
|
441.73
|
715.75
|
708.43
|
730.03
|
SBIN
|
426.37
|
465.00
|
449.80
|
473.15
|
Indusind Bank
|
272.30
|
1,131.00
|
1,072.50
|
1,188.00
|
Tata Motors
|
262.49
|
311.00
|
307.43
|
314.78
|
Power Grid Corporation of India has infused fresh equity of Rs 407.49 crore in Energy Efficiency Services, a Joint Venture Company of Power Grid, NTPC, PFC and REC.
Tata Motors has launched its first electric sedan under the XPRES brand - the XPRES-T EV, exclusively for fleet customers, with a price starting at Rs 9.54 lakh.
Infosys has launched Infosys Equinox to help enterprises securely deliver hyper-segmented, personalized omnichannel commerce experiences for B2B and B2C buyers.
Wipro has secured a multiyear contract from Kuala Lumpur- headquartered Maxis Broadband Sdn Bhd, a leading converged solutions provider.