Extending
record hitting spree for fourth straight session, Indian equity benchmarks once
again settled at fresh closing highs. Key gauges started on pessimistic note,
as traders remained cautious with 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. Some anxiety
remained among the local traders with Moody's Investors Service's report which
stated that the GST Council's decision to lower rates on several goods and also
rationalise rates on some services will impact government's fiscal
consolidation effort. Investors took note of Reserve Bank of India's (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. The mood on the street also
remained cautious ahead of the RBI's monetary policy outcome. However, buying
which emerged in last leg of trade mainly helped markets to settle above their
crucial 37,600 (Sensex) and 11,350 (Nifty) levels. Sentiments turned positive
on report that the government sought Parliament's approval for additional gross
additional expenditure of Rs 11,697.92 crore for the current fiscal. Traders
took note of a private report stating that GDP growth is likely to peak in
April-June quarter and then moderate to 7.2% in the second half of 2018 from
around 7.8% in first half. Market participants also took some support from
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. Finally, the
BSE Sensex surged 112.18 points or 0.30% to 37,606.58, while the CNX Nifty was
up by 36.95 points or 0.33% to 11,356.50.
The US markets ended on an
optimistic note with all the major indices settling in green terrain, as
sentiments remained up-beat with a private report indicating the U.S. and China
are trying to restart talks aimed at averting a full-blown trade war. Some
support also came with the latest batch of U.S. economic data, including a
report from the Commerce Department showing personal income and spending both
increased in line with the street estimates in the month of June. The report
said personal income climbed by 0.4 percent in June, matching the increase seen
in May as well as expectations. The Commerce Department said personal spending
also rose by 0.4 percent in June after climbing by an upwardly revised 0.5
percent in May. The street had expected spending to increase by 0.4 percent
compared to the 0.2 percent uptick originally reported for the previous month.
A separate report from the Conference Board showed a modest rebound in consumer
confidence in the month of July. The Conference Board said its consumer confidence
index inched up to 127.4 in July from an upwardly revised 127.1 in June. Meanwhile,
traders seemed reluctant to make more significant moves ahead of the Federal
Reserve's money policy announcement on August 1. The Fed is widely expected to
leave interest rates unchanged, but the accompanying statement is likely to be
closely examined for any hints about future rate hikes. The S&P 500 gained
13.69 points or 0.49 percent to 2,816.29 and the Nasdaq jumped 41.78 points or
0.55 percent to 7,671.79 and the Dow Jones Industrial Average was up by 108.36
points or 0.43 percent to 25,415.19.
Crude oil
futures ended lower on Tuesday, as investors expressed concerns over increased
output from OPEC which appeared to reach its high for the year in July.
Besides, concerns surrounding Iranian oil eased and traders' attention started
to shift to weekly data on US petroleum inventories. Investors looked ahead to
data on US supplies, with the American Petroleum Institute slated to deliver
its estimate on weekly inventories after Tuesday's close. The Energy
Information Administration's (EIA) more closely watched tally is due on
Wednesday. As per a private report, the EIA to report a decline of 2.4 million
barrels in crude stockpiles for the week ended July 27. Benchmark crude oil
futures for September declined $1.37 or 2 percent to settle at $68.76 a barrel
on the New York Mercantile Exchange. September Brent crude fell 72 cents or 1
percent at $74.25 a barrel on London's Intercontinental Exchange.
Indian
rupee strengthened against dollar on Tuesday, on good bouts of dollar-selling
by banks and exporters. Market participants took support with a private report
stating that GDP growth is likely to peak in April-June quarter and then
moderate to 7.2% in the second half of 2018 from around 7.8% in first half.
Some comfort also came 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. However, gains remained capped as anxiety remained among
traders ahead of the Reserve Bank of India's (RBI) decision on the monetary
policy and key interest rates on August 01. On the global front, Japanese yen
fell against dollar and is poised to register its biggest daily loss in nearly
three weeks on Tuesday after the central bank pledged to keep interest rates
low and adopted a forward guidance model to strengthen its commitment for its
massive policy stimulus. Finally, the rupee ended at 68.55, 12 paise stronger
from its previous close of 68.67 on Monday.
The FIIs as per Tuesday'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 4635.32 crore against gross
selling of Rs 4779.98 crore, while in the debt segment, the gross purchase was
of Rs 1437.18 crore with gross sales of Rs 720.87 crore. Beside, in the hybrid
segment, the gross buying was of Rs 3.99 crore against gross selling of Rs
10.39 crore.
The US markets ended higher on
Tuesday, following good earnings and economic data and a report that US-China
trade talks would resume. Asian markets were trading mostly in green on
Wednesday, following gains on Wall Street, as a report of attempts to renew
talks between the US and China eased trade war fears, but investors will be
keeping a close eye on data due today. Buying in last leg of trade helped
Indian equity markets to end Tuesday's session in green territory, with Sensex
and Nifty ending at record closing high, supported by IT, energy, metal and
pharma stocks. Today, the start of the new month is likely to be on a positive
side, ahead of the Reserve Bank of India's (RBI's) monetary policy meeting
outcome as well as an outcome from FOMC meeting which will be out later in the
day. RBI's monetary policy committee is expected to maintain its neutral policy
stance given the volatility in crude oil and food prices. Investors will also
be eyeing manufacturing PMI data to be out later in the day. Traders will be
getting encouragement with the commerce and industry ministry's data showing
that growth of eight core sectors expanded to 7-month high of 6.7% in June on
the back of better performance by cement, refinery and coal segments. Investors
may get some support with a private report that the Indian economy is likely to
have witnessed solid economic growth in the April-June quarter but leading
indicators suggest a slowdown in the coming months. The report stated that GDP
growth to peak in April-June quarter and then moderate to 7.2% in the second
half of 2018 from around 7.8% in first half. Traders will also be reacting to
the Controller General of Accounts' (CGA) data showing that government's
finances have shown improvement in the June quarter of 2018-19 with fiscal
deficit working out to 68.7% of the Budget Estimate, mainly on account of
higher revenue collection. There will be some important earnings announcements
too to keep the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,356.50
|
11,294.17
|
11,392.42
|
BSE Sensex
|
37,606.58
|
37,388.69
|
37,734.53
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
365.10
|
293.50
|
289.40
|
300.00
|
Axis Bank
|
217.35
|
550.40
|
537.45
|
573.90
|
ICICI Bank
|
208.24
|
304.25
|
301.47
|
307.77
|
ITC
|
145.63
|
297.70
|
295.05
|
300.85
|
Reliance
|
138.75
|
1,186.00
|
1,158.63
|
1,201.88
|
Axis Bank has reported 46.30% fall in its net profit at Rs 701.09 crore for Q1FY19 as compared to Rs 1,305.60 crore for Q1FY18.
Hero MotoCorp is planning to launch new scooters and motorcycles in Iran and Turkey as part of its global expansion strategy.
Coal India has decided to procure mining equipments of Rs 12,000-13,000 crore through global tender over the next three years to ramp up coal production to meet the growing demand.
Mahindra & Mahindra is all set to launch its global model -- Marazzo -- in Q2 of FY-2019.