NSE Intra-day chart (30 August 2019) | | | Top Gainers | | | Top Losers | | | World Indices | | | Indices | | | FII Activity(Rs. Cr) | | | DII Investments(Rs. Cr) | | |
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Market Commentary | | 03 September 2019 | |
Markets to make a negative start on weak economic data
Indian equity bourses staged
recovery to end the last trading day of the week on higher note, with the
Sensex and the Nifty gaining over 250 and 50 points, respectively. After a
positive start of the trading day, markets turned sluggish and traded in red
terrain, ahead to the April-June quarter (Q1FY20) Gross Domestic Product (GDP)
numbers to be out later in the day. However, in the second half of the session,
key indices erased all of their losses, taking support from Union Home Minister
Amit Shah's statement that India's macroeconomic fundamentals are quite strong
and its economy is currently growing at the fastest pace in the world. Recovery
on the street was also because of firm cues from global markets. Market
participants took comfort with Union Finance Minister Nirmala Sitharaman's
statement that the Centre will announce two more big steps in the coming days
to give momentum to industry. She said the government has decided to increase
spending and has announced a slew of measures to arrest the sluggishness in the
automobile market. Separately, Union Minister Prakash Javadekar, executing
confidence that India will become a five trillion dollar economy in the next
five years, said that good governance and zero corruption are needed for
sustainable economic development in the country. Finally, the BSE Sensex gained
263.86 points or 0.71% to 37,332.79, while the CNX Nifty was up by 74.95 points
or 0.68% to 11,023.25.
The US markets remained closed on
Monday on account of Labor Day.
Indian
rupee ended significantly higher against dollar on Friday on persistent selling
of the American currency by exporters. Rupee throughout the day remained
positive, taking support from Union Home Minister Amit Shah's statement that
India's macroeconomic fundamentals are quite strong and its economy is
currently growing at the fastest pace in the world. Also, last hour splendid
recovery in local equity markets and easing crude oil prices gave the uptrend
some momentum. However, there was some cautiousness too ahead of release the
April-June quarter (Q1FY20) Gross Domestic Product (GDP) numbers later in the
day. On the global front, dollar held firm against the yen on Friday, as
comments from Beijing sparked renewed hopes that China and the United States
(US) could get full-fledged negotiations back on track to resolve their
protracted trade dispute. Finally, the rupee ended at 71.42, 38 paise stronger
from its previous close of 71.80 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 4420.11 crore against gross
selling of Rs 5047.33 crore, while in the debt segment, the gross purchase was
of Rs 1268.46 crore with gross sales of Rs 532.84 crore. Besides, in the hybrid
segment, the gross buying was of Rs 10.60 crore against gross selling of Rs
10.29 crore.
Asian markets are trading mixed
on Tuesday as the US-China trade tensions continue to rise after China lodged a
complaint against the United States at the World Trade Organization over US
import duties. Indian equity benchmarks ended in green on Friday propelled by
gains in index heavyweights HDFC, ICICI Bank and HUL amid positive cues from
the global markets. Markets remain
closed on Monday on account of Ganesh Chaturthi. Today, the start of the
session is likely to be on negative side on weak regional cues. Traders will
remain concern on report that India's economic growth has slumped for the fifth
straight quarter to an over six-year low of 5% in the first three months
(April-June) of current fiscal year (Q1FY20). The growth slumped as consumer
demand and private investment slowed amid deteriorating global environment. The
previous low in Gross Domestic Product (GDP) growth was recorded at 4.3% in the
January-March quarter of 2012-13. Also,
India's manufacturing growth declined to its 15-month low in August. The IHS
Markit India Manufacturing Purchasing Managers' Index (PMI), fell to 51.4 in
August, its lowest mark since May 2018, from 52.5 in July, as most survey
indicators fell since July to signal a widespread loss of momentum. There will
also be concerned with the government data showing that growth of eight core
industries industries -- coal, crude oil, natural gas, refinery products,
fertiliser, steel, cement and electricity -- dropped to 2.1 per cent in July,
mainly due to contraction in coal, crude oil and natural gas production. The
eight core sector industries had expanded by 7.3 per cent in July last year.
The banking sector stocks will be in action on report that the government
unveiled a mega plan to merge 10 public sector banks into four as part of plans
to create fewer and stronger global-sized lenders as it looks to boost economic
growth. Finance Minister Nirmala Sitharaman announced four new set of mergers
-- Punjab National Bank, Oriental Bank of Commerce and United Bank of India
will combine to form the nation's second-largest lender; Canara Bank and
Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank
and Corporation Bank; and Indian Bank will merge with Allahabad Bank. There
will be some buzz in agriculture stocks with Crisil Research in its Agriculture
Report 2019 stating that Farmers' profit from kharif crops this year could shrink
to 10-12% from 37% a year ago, mainly on account of lower production. The
automobile stocks will keep buzzing on report that India's automakers reported
their monthly sales numbers, which showed that sales of four- and two-wheelers
almost halved in August, compared to the equivalent month last year.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
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Previous close
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Support
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Resistance
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NSE Nifty
|
11,023.25
|
10,917.83
|
11,085.63
|
BSE Sensex
|
37,332.79
|
36,975.74
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37,543.90
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
2,263.95
|
59.95
|
56.65
|
62.10
|
Sun Pharma
|
123.08
|
450.40
|
435.63
|
459.28
|
ZEEL
|
48.51
|
373.10
|
364.90
|
378.65
|
IndusInd Bank
|
52.55
|
1,395.75
|
1,350.05
|
1,421.55
|
Tata Steel
|
179.72
|
344.90
|
338.90
|
349.20
|
NTPC has incorporated a wholly owned subsidiary in the name of NTPC Mining with Registrar of Companies, NCT of Delhi on August 29, 2019 for taking up coal mining business. The NDRF has signed a MoU with Wipro 3D to work together in design for additive manufacturing of aerospace systems and developing related industry standards. M&M has launched 'New Bolero City Pik-Up', an addition to its 'pick-up' range, priced at Rs 6.25 lakh. L&T and Mitsubishi Hitachi Power Systems' JV company -- L&T -MHPS Boilers has secured large order from THDC India.
News Analysis
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