Indian equity
benchmarks snapped their three-day losing streak and ended higher by around
half percent on Thursday led by strong buying interest in Metal, Basic
Materials and Realty stocks. Strong global cues also helped the sentiments. The
benchmarks staged a gap up opening and held on to gains as futures and option
contracts for the month of July expired. Sentiments got a boost as Chief
Economic Adviser (CEA) K V Subramanian said that India is expected to hit a
growth rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in
the subsequent years on the back of reforms undertaken by the government.
Sentiments remained positive as Securities and Exchange Board of India's (SEBI)
Chairman, Ajay Tyagi asserted that a large part of the non-banking financial
intermediation is happening through the capital markets. Going forward, the
capital markets are going to play a bigger role in funding the economic growth.
Benchmarks continued to trade in green in second half of the session, as the
Reserve Bank of India (RBI) allowed payment system providers, prepaid card
issuers, card networks and white label ATM operators access to its Centralised
Payment Systems (CPS), such as real time gross settlement (RTGS) and National
Electronic Fund Transfer (NEFT) systems in the first phase of its plan bring
non-banks in the same platform. Some
support came after Centre has launched the Secured Logistics Document Exchange
along with a Calculator for Green House Gas Emissions, in order to further
improve ease of doing business. The Digital initiative is now set to improve
logistics efficiency, reduce logistics cost, and promote multi-modality and
sustainability in a big way. However,
upside remained capped as some cautiousness prevailed in the markets with a private report that the
Indian economy is expected to face some pressure in the current financial year
due to the second wave of the pandemic, coupled with weaker consumer sentiment,
but a large capex by the government can be a saving grace for the economy.
Finally, the BSE Sensex rose 209.36 points or 0.40% to 52,653.07, while the CNX
Nifty was up by 69.05 points or 0.44% to 15,778.45.
The US markets ended higher on
Thursday after the Labor Department released a report showing a modest pullback
in initial jobless claims in the week ended July 24th. The report said initial
jobless claims dipped to 400,000, a decrease of 24,000 from the previous week's
revised level of 424,000. Street had expected jobless claims to drop to 380,000
from the 419,000 originally reported for the previous week. Meanwhile, a report
released by the Commerce Department showed a significant increase in US gross
domestic product in the second quarter of 2021, although the pace of growth
fell short of street estimates. The Commerce Department said real GDP surged up
by 6.5 percent in the second quarter following a 6.3 percent jump in the first
quarter. Street had expected GDP to spike by 8.5 percent. The GDP growth in the
second quarter reflected increases in consumer spending, non-residential fixed
investment, exports, and state and local government spending. The report showed
consumer spending skyrocketed by 11.8 percent in the second quarter after
soaring by 11.4 percent in the first quarter. However, decreases in private
inventory investment, residential fixed investment, and federal government
spending limited the upside along with an increase in imports, which are a
subtraction in the calculation of GDP. Pending home sales in the US
unexpectedly showed a notable decrease in the month of June, according to a
report released by the National Association of Realtors (NAR). NAR said its
pending home sales index tumbled by 1.9 percent to 112.8 in June after soaring
by 8.3 percent to a revised 115.0 in May. The pullback surprised participants,
who had expected pending home sales to edge up by 0.3 percent compared to the
8.0 percent spike originally reported for the previous month.
Crude oil futures ended higher on
Thursday as supplies in the United States further tightened after shrinking to
the smallest levels since January 2020. Data from information provider Genscape
indicated that the inventories at the Cushing, Oklahoma storage hub have
continued to draw. Cushing stockpiles were seen at 36.299 million barrels by
Tuesday, down 360,917 barrels from July 23. Further, a weak dollar contributed
as well to the jump in oil prices. The dollar index dropped to 91.91, losing
more than 0.4%. The dollar drifted lower after the Federal Reserve said on
Wednesday that it has not yet set a time to start tapering its bond purchases. Crude
oil futures for September rose $1.23 or 1.7 percent to settle $73.62 barrel on
the New York Mercantile Exchange. September Brent crude gained $1.30 or 1.7
percent to settle at $76.04 a barrel on London's Intercontinental Exchange.
Indian rupee ended significantly
stronger against dollar on Thursday amid favorable US Fed meet outcome. Federal
Reserve kept its accommodative monetary policies and signaled that economic
recovery was on track. Investors also remained energized as Chief Economic
Adviser (CEA) K V Subramanian stated that India is expected to hit a growth
rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in the
subsequent years on the back of reforms undertaken by the government. Adding
more support, SEBI Chairman Ajay Tyagi asserted that a large part of the non-banking
financial intermediation is happening through the capital markets. Going
forward, the capital markets are going to play a bigger role in funding the
economic growth. Besides, healthy gains in domestic equity markets also
supported rupee. On the global front, dollar slipped to a one-month low on
Thursday after the U.S. Fed's reassurance that interest rate hikes remain
distant. Finally, the rupee ended 74.29, stronger by 9 paise from its previous
close of 74.38 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 6882.89 crore against gross selling of Rs
9325.85 crore, while in the debt segment, the gross purchase was of Rs 725.61
crore with gross sales of Rs 410.38 crore. Besides, in the hybrid segment, the
gross buying was of Rs 8.62 crore against gross selling of Rs 14.45 crore.
The US markets ended higher on
Thursday helped by strong company earnings and solid economic growth data.
Asian markets are trading mostly in red on Friday with a gauge of regional
equities set for its biggest monthly drop since the height of global pandemic
lockdowns last March. Indian markets ended higher on Thursday led by gains in
metals and IT stocks amid positive global cues. Today, the markets are likely
to open lower following losses in Asian peers. There will be some cautiousness
as 3 southern states report spike in new infections. Kerala reported more than
22,000 fresh Covid-19 cases for the third day straight: the spike prompting the
state to announce a weekend lockdown. Karnataka and Tamil Nadu recorded a rise
in new infections on Thursday as well, taking India's daily case count to
nearly 45,000, the highest in 22 days. A state-backed committee of experts
recommended conducting a study on mixing doses of Covishield and Covaxin
vaccines for Covid-19. however, traders may take encouragement later in the day
with India Ratings and Research's statement that outbound shipments from India,
which have been languishing for quite some time, can benefit from the
favourable trade growth outlook of 2021 and consolidate further from the level
achieved in the first quarter of this fiscal. Some support may come as Chief
Economic Advisor K V Subramanian said headline inflation will come down under
the 6 percent mark in July itself but will stay at an elevated level of over 5
percent for some time. Traders may take note of report that Finance Minister
Nirmala Sitharaman said that the Factoring Regulation (Amendment) Bill, 2021
will expand credit facilities for small businesses, and will help them in
accessing funds from 9,500 non-banking financial companies (NBFC). There will
be some buzz in the telecom stocks reacting to telecom regulator Trai's
subscribers' data. Jio added 35.54 lakh mobile users during the month, raising
its subscriber base to 43.12 crore. Both Airtel and Vodafone Idea suffered
massive subscriber losses in May. Aviation stocks will be in focus as the Lok
Sabha passed the Airport Economic Regulatory Authority (AERA) Amendment Bill
paving the way for privatisation of a small loss making airport by clubbing it
with a larger airport. There will be some reaction in oil and gas sector stocks
as the government permitted 100 per cent foreign investment under the automatic
route in oil and gas PSUs which have received in-principle approval for
strategic disinvestment. Meanwhile, some interest is likely in the primary
markets as Rolex Rings IPO closes today. The IPO has been subscribed 9.2 times
so far.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
15,778.45
|
15,738.39
|
15,817.94
|
BSE
Sensex
|
52,653.07
|
52,550.58
|
52,766.37
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Hindalco Industries
|
614.14
|
458.10
|
425.26
|
482.46
|
Tata Motors
|
577.33
|
292.90
|
288.50
|
296.35
|
State Bank of India
|
352.63
|
441.55
|
430.16
|
448.26
|
Tata Steel
|
300.61
|
1458.60
|
1,390.46
|
1,504.26
|
Power Grid Corporation of India
|
214.57
|
167.40
|
165.19
|
171.59
|
Tata Motors has launched Nexon EV in Nepal.
Infosys has unveiled a new set of Enterprise Agile DevOps capabilities that will help businesses strengthen customer centricity and innovation.
M&M is adopting a 58 MWp captive solar plant that is expected to generate about 100 million units of power annually beginning 2022.
HDFC has enhanced its existing limit to raise capital through medium-term notes to up to $ 2.8 billion (about Rs 20,875.65 crore).