Indian equity indices ended
Monday's session on lower note with losses of over one and half percent, as a
second wave of infections throughout the world, including China and US, gave
jitters to investors. Domestic stock markets started the week on a negative
note, as traders were cautious as the government has not released the headline
IIP growth for April, Consumer Price Inflation (CPI) for May saying that it is
not appropriate to compare these readings with the previous months. The March
IIP reading has been revised further lower to -18.3 percent versus -16.7
percent said earlier. Besides, it said the May CPI combined food price index is
at 9.28 percent and risen up 0.1 percent versus the April reading. Sentiments
remained down-beat with private report stated that with the protracted lockdown
pushing the Indian economy into deep recession in the current fiscal, the
escalating new COVID-19 cases after easing of restrictions poses further downside
risks to the economic outlook. Key gauges added more losses in afternoon
session to trade near day's low, amid India saw a deflation in wholesale prices
in May as the wholesale price index (WPI) contracted 3.21 per cent. Due to
limited information available for the month of April 2020, the provisional
figures of May-2020 are compared with final figures of March, 2020. However, Indian market recovered slightly in
the last hour of trading session, taking support from the Finance Ministry's
statement that public sector banks (PSBs) have disbursed Rs 14,690.84 crore
till June 11, under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme
(ECLGS) for the Micro, Small & Medium Enterprises (MSME) sector, hit hard
by the coronavirus crisis. Finally, the BSE Sensex lost 552.09 points or 1.63%
to 33,228.80, while the CNX Nifty was down by 159.20 points or 1.60% to
9,813.70.
The US markets ended higher on
Monday after the Federal Reserve announced plans to begin buying a broad and
diversified portfolio of corporate bonds to support market liquidity and the
availability of credit for large employers. The Fed said it will buy up to $750
million worth of corporate bonds to create a corporate bond portfolio that is
based on a broad, diversified market index of US corporate bonds. The index
will be made up of all the bonds in the secondary market that have been issued
by US companies that satisfy the facility's minimum rating, maximum maturity,
and other criteria. Further, sentiments were also upbeat as traders continued to
express optimism about the economy as the New York Federal Reserve released a
report showing regional manufacturing activity steadied in June after seeing
sharp contractions in April and May. The New York Fed said its general business
conditions index spiked to negative 0.2 in June from negative 48.5 in May. A
negative reading indicates a contraction in regional manufacturing activity.
The jump by the index far exceeded the estimates of participants, who had
expected the index to surge up to negative 27.5. However, upside remained
capped amid concerns about a second wave of coronavirus infections after
Beijing recorded a spate of new Covid-19 cases in a major wholesale food
market. Data compiled by the New York Times also showed a recent increase in coronavirus
cases in more than 20 states, including California, Florida, and Nevada. Texas
and North Carolina also reported a record number of coronavirus-related
hospitalizations on Saturday, adding to worries that businesses reopening may
drive a second wave.
Crude oil futures ended higher on
Monday as hopes about production cuts outweighed concerns about the outlook for
energy demand. The OPEC members and allies were complying well with their
output reduction deal. The UAE energy minister reportedly said that he is
confident that those oil producers with poor compliance would meet their
commitments. However, reports about a surge in new cases of coronavirus
infections in the US, China and Japan limited oil's uptick. Several states in
the US reported a surge in new coronavirus infections following the reopening
of businesses. Over 25,000 new US cases were reported on Saturday alone as more
states reported record new infections and hospitalizations. Crude oil futures
for July gained 86 cents or 2.4 percent to settle at $37.12 a barrel on the New
York Mercantile Exchange. August Brent crude rose 99 cents or 2.6 percent to
settle at $39.72 a barrel on London's Intercontinental Exchange.
Indian rupee ended on weak note
against US dollar on Monday, as weak domestic equities and sustained foreign fund
outflows weighed on investors' sentiment. Traders remained wary as the
government has not released the headline IIP growth for April, Consumer Price
Inflation (CPI) for May saying that it is not appropriate to compare these
readings with the previous months. The March IIP reading has been revised
further lower to -18.3 percent versus -16.7 percent said earlier. Besides, it
said the May CPI combined food price index is at 9.28 percent and risen up 0.1
percent versus the April reading. Some pessimism also came with private report
stated that with the protracted lockdown pushing the Indian economy into deep
recession in the current fiscal, the escalating new COVID-19 cases after easing
of restrictions poses further downside risks to the economic outlook. On the
global front, dollar rose and commodity currencies fell as a 'risk-off'
sentiment dominated markets, driven in part by fears of a second wave of
COVID-19 infections after new cases were recorded in Beijing and U.S. numbers
spiked over the weekend. Finally, the rupee ended at 76.03, 19 paise weaker
from its previous close of 75.84 on Friday.
The FIIs as per Monday's data
were net buyers in both equity and debt segments. In equity segment, the gross
buying was of Rs 5401.18 crore against gross selling of Rs 4906.28 crore, while
in the debt segment, the gross purchase was of Rs 854.63 crore with gross sales
of Rs 795.62 crore. Besides, in the hybrid segment, the gross buying was of Rs
4.02 crore against gross selling of Rs 1.53 crore.
The US markets ended higher on
Monday as traders continued to express optimism about the economy as the New
York Federal Reserve released a report showing regional manufacturing activity
steadied in June after seeing sharp contractions in April and May. Asian
markets are trading in green on Tuesday after the Federal Reserve's fresh move
to support financial markets through the coronavirus pandemic cheered investors.
Indian markets ended sharply lower on Monday, mirroring losses in other global
markets amid reports that coronavirus infections in China, Japan and the United
States raised concerns of a resurgence of the virus and added to uncertainty
about growth outlook. Today, the markets are likely to make positive start
following firm global cues. Prime Minister Narendra Modi will hold a video
conference with the leaders of 21 states and union territories today and
tomorrow to discuss the increasing number of coronavirus cases in the country.
Though, rising coronavirus canes may impact sentiments. The total number of
coronavirus cases in the country has reached 343,026 and nearly 10,000 have
died from the highly contagious disease. Traders may be concerned with the data
released by the Commerce and Industry Ministry showing that contracting for the
third straight month, India's exports declined 36.47 percent in May to $19.05
billion, mainly on account of drop in shipments by key sectors such as
petroleum, textiles, engineering, gems and jewellery. Imports too plunged 51
percent to $22.2 billion in May, leaving a trade deficit of $3.15 billion,
compared to $15.36 billion in the same month previous year. Meanwhile, India
may impose anti-dumping duty on imports of polystyrene, used in refrigerators
and air conditioners, from Iran, Malaysia, Singapore, Chinese Taipei, UAE and
the US with a view to guard domestic players from cheap imports from these
countries. Also, Retirement fund body Employees Provident Fund Organisation
(EPFO) said it has launched a multi-location claim settlement facility to
expedite member claims, moving away from the existing system of geographical
jurisdiction for claim processing. There will be some reaction in agriculture
stocks as buoyed by increase in futures prices and the minimum support price
(MSP), cotton farmers have increased acreage under the cash crop by shifting
from maize and soybean in the early kharif sowing season.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9,813.70
|
9,712.25
|
9,929.25
|
BSE Sensex
|
33,228.80
|
32,878.18
|
33,624.99
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
693.20
|
100.50
|
98.82
|
103.42
|
State Bank of India
|
636.17
|
173.70
|
171.18
|
177.03
|
Zee Entertainment
Enterprises
|
461.59
|
165.50
|
160.33
|
173.83
|
Indusind Bank
|
450.36
|
490.55
|
474.37
|
515.87
|
ICICI Bank
|
435.02
|
331.10
|
323.65
|
340.40
|
TPG is planning to invest Rs 4,546.80 crore in Jio Platforms, a wholly-owned subsidiary of Reliance Industries, at an equity value of Rs 4.91 lakh crore.
Tata Motors has signed an agreement to purchase the balance 50% shareholding from the joint venture partner -- Jayem Automotives in JT Special Vehicles.
Wipro has launched its Digital Inspection Solution for improved workplace safety and experience.
Tata Steel has launched specialised Coated Brands for Emerging Corporate Accounts.