Extending previous session's
strong gains, Indian equity indices closed the Friday's session on a positive
note. Markets made an optimistic start of the day, amid reports that the
government is likely to withdraw higher surcharge on foreign portfolio
investors (FPIs). In this regard, Finance minister Nirmala Sitharaman will meet
market participants, including senior officials of foreign portfolio investors
and mutual funds, later in the day to ascertain views on current issues
relating to financial markets. Some support also came after India Inc said the
government has assured to take action soon to revive the industry and push
economic growth, which is showing signs of a slowdown. Finance Minister Nirmala
Sitharaman & ministry officials met captains of the industry to deliberate
upon the issues about the economy and sagging industrial growth. Sentiments
remained positive, as Agriculture Minister Narendra Singh Tomar said that the
deficit in southwest monsoon has narrowed and the sowing of summer (Kharif)
crops is progressing well across the country. Firm trade persisted during the
whole day, supported by report that the Confederation of All India Traders
(CAIT) launched an initiative Digi Vyapari-Safal Vyapari, to accelerate
acceptance of digital payments among merchants across the country. For this
initiative, CAIT partnered with HDFC Bank, Mastercard, Common Service Centres
(CSCs) of Ministry of Electronics and Information Technology (Meity) and Global
Linkers. The street paid no heed towards Ind-Ra's latest report stating that
the huge Rs 3 trillion capital infusion by the government into Public Sector
Banks (PSBs) between FY14 and FY19 has helped them cut losses but has failed to
contribute meaningfully to credit growth. Finally, the BSE Sensex gained 254.55
points or 0.68% to 37,581.91, while the CNX Nifty was up by 77.20 points or
0.70% to 11,109.65.
The US markets end in red with
cut of over one percent on Monday on lingering worries over US-China trade
tensions and continued unrest in Hong Kong. President Donald Trump recently
indicated he feels no sense of urgency to resolve the dispute. Trump said last
Friday that he is not ready to make a deal with China and suggested the US
could skip the next round of trade talks in September. Trump denied that
Americans are paying the price for his trade war with China, arguing that
Beijing's efforts to depress their currency prove that the Chinese are paying
for it. Besides, concerns about the impact of increasingly violent protests in
Hong Kong also weighed on markets, with the Hong Kong International Airport
canceling all departing flights due to the disruption caused by protesters. The
pro-democracy demonstrations in Hong Kong have intensified following
allegations of unnecessary police violence. On the economic front, the German
think tank ifo said in a report that an intensification of trade tensions,
especially between the US and China, is having considerable adverse effects on
the world economy. The ifo World Economic Climate indicator dropped to -10.1 in
the third quarter from -2.4 in the previous three months. In the first quarter,
the reading was -13.1. The current situation index of the survey fell to -5.4
from 1.4 in the previous quarter. The reading was the weakest since January
2017, when it was in negative territory last time. The expectations measure
dropped to -14.7 from -6.1. In the first quarter, the reading was -27.7. Dow
Jones Industrial Average plunged 389.73 points or 1.48 percent to 25897.71,
Nasdaq dropped 95.73 points or 1.20 percent to 7863.41 and S&P 500 was down
by 35.56 points or 1.22 percent to 2883.09.
Crude oil futures end higher on
Monday, appearing to shrug off worries over global economic growth that has
been fanned by the deepening US-China trade war. Crude oil prices, after
dropping around 15% over the past month of trading to seven-month lows last
week appear to have stabilized, albeit temporarily, over the past couple of
trading days as traders balance fears of slowing demand growth against
expectations of tightened supplies on account of producer output cuts and
reduced Iranian and Venezuelan exports and fears of potential supply disruption
in the Persian Gulf. Benchmark crude oil futures for September gained 28 cents
or 0.5 percent to settle at $54.78 a barrel on the New York Mercantile
Exchange. October Brent added 14 cents or 0.2 percent to settle at $58.65 a
barrel on London's Intercontinental Exchange.
Indian
rupee ended marginally weaker against the US dollar on Friday, due to increased
demand of the greenback from the importers and the banks. Investors remained
concerned ahead of key macro data - index of industrial production (IIP) for
June scheduled to be released later today. However, losses remain capped as
traders found some support with Finance Minister Nirmala Sitharaman assuring
industry leaders that the RBI and the government are on the 'same page' and
making efforts to boost the economy. On the global front, Sterling has hit a
near-ten year low against the euro after data unexpectedly showed that British
gross domestic product contracted in the second quarter for the first time
since 2012. Finally, the rupee ended at 70.78, 9 paise weaker from its previous
close of 70.69 on Thursday.
The
FIIs as per Friday's data were net sellers in equity segment, while they were
net buyers in debt segment, In equity segment, the gross buying was of Rs
5451.77 crore against gross selling of Rs 6517.36 crore, while in the debt
segment, the gross purchase was of Rs 1674.11 crore with gross sales of Rs
1162.28 crore. Besides, in the hybrid segment, the gross buying was of Rs 3.52
crore against gross selling of Rs 4.76 crore.
The US markets declined on
Monday, dragged down by financial shares, as investors fled riskier assets on
fears that a drawn-out trade war between the US and China could force the
global economy into recession. Asian markets are trading in red on Tuesday amid
fears about a drawn out Sino-US trade war, protests in Hong Kong. Indian markets
ended higher for second straight session on Friday as the sentiment turned
positive on strong buzz that the government may axe higher foreign portfolio
investment (FPI) tax. Markets remain closed on Monday on account of Bakrid.
Today, the start of the truncated week is likely to be in green as investors
looking for the development over expected measures to revive economy as well as
the roll-back of super-rich tax. Traders will also be looking to the
macroeconomic data including CPI inflation and balance of trade for the month
of July to be release later in the day. Some support will come with report that
the government is working on a set of measures to remove friction points in the
economy with a view to ensuring easy availability of funds to productive sectors
and stimulate overall growth. Besides, the government is working on a proposal
to allow 100 percent FDI in contract manufacturing with a view to attract
overseas investments. According to the existing foreign investment policy, 100
percent foreign direct investment (FDI) is permitted in the manufacturing
sector under the automatic route. However, some cautiousness may come in amid
weakness in global markets. There may be some concern with report that
continuing with their selling spree, foreign investors pulled out a net amount
of Rs 9,197 crore in just seven trading sessions in August due to unconducive
domestic and global factors. According to latest depositories data, foreign
portfolio investors (FPIs) withdrew a net amount of Rs 11,134.60 from equities
while pumping in Rs 1,937.54 into the debt segment during August 1-9, taking
the total net withdrawal to Rs 9,197.06 crore. Meanwhile, SEBI has said
investment provisions for domestic Alternative Investment Funds (AIFs) will
also be applicable for such entities operating in international financial
services centre (IFSC). There will be some buzz in the power stocks with report
that average spot power price is likely to be around Rs 3.40 per unit in August
on account of higher supplies especially from hydro and wind energy segments.
Also, coal stocks will be in focus with report that the country's coal imports
increased by 28.7 percent to 24.14 million tonnes in June on the back of
softening of non-coking coal prices in the international markets.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,109.65
|
11,054.48
|
11,173.13
|
BSE Sensex
|
37,581.91
|
37,389.60
|
37,790.89
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,870.31
|
82.15
|
78.05
|
89.35
|
Tata Motors
|
392.45
|
122.05
|
119.67
|
125.47
|
Indiabulls Housing Finance
|
374.75
|
505.25
|
461.17
|
535.17
|
SBI
|
233.78
|
291.35
|
288.27
|
296.22
|
ICICI Bank
|
176.64
|
420.15
|
415.63
|
423.53
|
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