Extending their
record-breaking spree for third straight session, Indian equity benchmarks
ended the session with a gain of around half a percent with Nifty conquering
11,300 mark, while Sensex ending just shy of 37,500 level. Markets soon after a
positive start entered into red terrain as traders turned cautious ahead of the
Reserve Bank of India (RBI) policy meet that begins on July 30. Sentiments remained
dampened with a private report stating that the RBI's rate-setting panel will
go for a status quo on key policy rates at the August monetary policy review.
Sentiments also remained dampened with rating agency Moody's report stating
that the recent Goods and Services Tax (GST) rate cuts on 88 items will weigh
on government's revenue collection and is credit negative as it will put
pressure on efforts of fiscal consolidation. Investors took note of Niti Aayog
CEO Amitabh Kant's statement that the country needs to improve its human
development index (HDI) to achieve a growth of around 10%. However, markets
recouped losses and entered into green terrain, as traders took some
encouragement with report that foreign investors have put in over Rs 1,800
crore in the Indian equity markets so far in July after pulling out massive
funds in the preceding month. The latest inflow comes after such investors had
taken out more than Rs 20,000 crore from the stock market during April-June.
Markets extended gains to end near fresh all-time highs, as sentiments remained
upbeat with Union Minister of State for Finance Shiv Pratap Shukla's statement
that the government is making concerted efforts to double the farmers' income
by 2022. He also said that the government has also taken concrete steps as per
the recommendations of the Swaminathan committee reports. Meanwhile, the
government removed restrictions for imports of urea for industrial,
non-agriculture and technical grade. Finally, the BSE Sensex surged 157.55
points or 0.42% to 37,494.40, while the CNX Nifty was up by 41.20 points or
0.37% to 11,319.55.
Extending their southward
journey, the US markets ended lower for second straight session, as shares of
technology companies tumbled, and investors braced for a busy week of corporate
earnings and central-bank meetings. The Fed's strategy has been to raise rates
gradually, signaling two additional rate rises before the end of the year. The
central bank, which begins its two-day policy meeting Tuesday, is not expected
to raise rates again until September. On economic front, the National
Association of Realtors released a report showing a much bigger than expected
rebound in pending home sales in the month of June. NAR said its pending home
sales index climbed by 0.9 percent to 106.9 in June after falling by 0.5
percent to 105.9 in May. Traders had expected pending home sales to inch up
by 0.1 percent. Despite the much bigger than expected increase, pending home
sales in June were down by 2.5 percent compared to the same month a year ago,
reflecting the sixth straight year-over-year decrease. A pending home sale is
one in which a contract was signed but not yet closed. Normally, it takes four
to six weeks to close a contracted sale. Meanwhile, overall trading activity
was somewhat subdued as traders looked ahead to the Federal Reserve's monetary
policy announcement on August 1. The Fed is widely expected to leave interest
rates unchanged, but traders are likely to keep a close eye on the accompanying
statement for clues about the outlook for rates. The S&P 500 shed 16.22
points or 0.58 percent to 2,802.60 and the Nasdaq declined 107.42 points or
1.39 percent to 7630.00 and the Dow Jones Industrial Average was down by 144.23
points or 0.57 percent to 25,306.83.
Crude oil
futures ended higher on Monday, amid speculation of increased fuel demand in
US, and on concerns over supply outlook due to imminent sanctions on Iran.
Besides, the US benchmark settled above $70 a barrel for the first time in
nearly three weeks. Concerns about the prospect of an oil supply shortage
returned on Monday, as investors continued to weigh supply disruptions in Saudi
Arabia and declining output from and Venezuela, Iran and Libya. Saudi Arabia
announced it would suspend shipments of oil through the key Bab el-Mandeb
Strait, after Houthi rebels in Yemen attacked a pair of oil tankers in the Red
Sea. Benchmark crude oil futures for September rose $1.44 or 2.1 percent to
settle at $70.13 a barrel on the New York Mercantile Exchange. September Brent
crude was up by 68 cents or 0.9 percent at $74.97 a barrel on London's
Intercontinental Exchange.
Indian
rupee ended almost flat against dollar on Monday, as traders remained on
sidelines ahead of the Reserve Bank of India (RBI) policy meeting. The Reserve
Bank is likely to maintain status quo on the key interest rate on Wednesday
notwithstanding elevated oil prices and government's announcement to steeply
hike minimum support price for kharif crops. Moreover, fresh month-end demand
of the U.S. currency from importers also weighed on the domestic unit. However,
a record breaking rally in domestic stocks helped rupee to recover from its
initial losses. On the global front, U.S. dollar weakened against a basket of
its major rivals on Monday, as traders prepared for a week filled with monetary
policy updates from Japan, the U.S. and the U.K. Finally, the rupee ended at
68.67, 1 paise weaker from its previous close of 68.66 on Friday.
The FIIs as per Monday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 4911.35 crore against gross
selling of Rs 4351.10 crore, while in the debt segment, the gross purchase was
of Rs 312.75 crore with gross sales of Rs 499.72 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.56 crore against gross selling of Rs 3.92
crore.
The US markets ended lower on
Monday, as investors braced for a busy week of corporate earnings and
central-bank meetings. Asian markets were trading in red in early deals on
Tuesday, taking cues from the rout in global technology shares, while the yen
edged higher ahead of the Bank of Japan's rate review, at which it could flag a
shift away from its massive monetary stimulus. Indian equity markets,
continuing their record-breaching spree, ended higher on Monday, with Sensex
and Nifty ending at record closing high, on the back of healthy quarterly
earnings. Today, markets are likely to make a cautious start, amid weak global
cues. Investors will be eyeing the Reserve Bank of India (RBI) policy meeting
to decide on the key interest rate amid elevated oil prices and inflation
hovering around 5%. There will be some cautiousness with RBI's data showing
that India Inc raised $2.71 billion through external commercial borrowing (ECB)
and rupee-denominated bonds (RDBs) in June 2018, up by 66.3% over the same
month last year. As per the data, Indian companies had raised $1.63 billion
from overseas sources in June 2017. Traders will also be reacting to a private
report that corporate India's business optimism index for the July-September
quarter registered an 11.7% increase over last year, while on a
quarter-on-quarter basis it has declined. However, traders may get some support
later in the day, with Crisil's report that India is much better placed than
many other emerging market peers or compared to its own situation in 2013 during
the taper tantrum, to tackle risks arising out of asymmetry in monetary policy
of advanced economies, the rise in crude prices and the escalation of trade war
tension. Meanwhile, Commerce Minister Suresh Prabhu has said that the
government is taking legislative as well as administrative measures for an
integrated strategy to reduce logistics related hurdles for boosting domestic
and global trade. There will be buzz in markets, as around 108 companies will
declare results for June quarter which includes Ajanta Pharma, Bank of India,
Bharat Electronics, Castrol India, Dabur India, Mahanagar Gas, Tata Motors,
Vedanta, and V-Guard.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,319.55
|
11,277.97
|
11,344.62
|
BSE Sensex
|
37,494.40
|
37,346.73
|
37,587.78
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ICICI Bank
|
561.19
|
307.35
|
298.25
|
312.45
|
SBI
|
409.50
|
297.40
|
291.22
|
301.57
|
ITC
|
170.81
|
301.05
|
299.50
|
303.10
|
Reliance
Industries
|
138.72
|
1,151.40
|
1,133.83
|
1,163.13
|
Axis Bank
|
129.50
|
569.65
|
556.57
|
576.97
|
Infosys will expand its presence in Noida and Uttar Pradesh with the commencement of work on its new software development center.
Sun Pharmaceutical Industries is recalling over 2500 bottles of Metformin hydrochloride extended release tablets from Arizona in the United States.
NTPC has received an approval for raising funds upto Rs 12,000 crore through issuance of secured/ unsecured, redeemable, taxable/ tax-free, cumulative/ non-cumulative, NCDs.
HDFC has reported 53.74% rise in its net profit at Rs 2,190.00 crore for Q1FY19 as compared to Rs 1,424.47 crore for Q1FY18.