Friday turned out to be a choppy
day of trade for Indian equity benchmarks, where Sensex and Nifty went home
with marginal cut, as market participants opted to remain on sidelines ahead of
the quarterly earnings starting next week. Markets started the session on
pessimistic note and extended southward journey, breaching their crucial 31,300
(Sensex) and 9,650 (Nifty) levels, as traders remained cautious with the report
that India slipped by one spot to become the fourth-largest foreign investor
into the UK. India set up 127 new projects in Britain last year and safeguarded
7,645 existing jobs as a result and created 3,999 new jobs in 2016-17. Traders
also stayed on sidelines ahead of outcome of the G20 Summit began on July 7, as
world leaders assembled to discuss fight against terrorism and ways to improve
open trade. However, markets witnessed recovery in afternoon deals and get back
their crucial bastions, as traders took some solace with report that net direct
tax collection grew by 14.8 percent to Rs 1.42 lakh crore at the end of first
quarter on account of surge in advance tax payments. According to the Ministry
of Finance, the net direct tax collection represents 14.5% of the total Budget
estimates of direct taxes of Rs 9.8 lakh crore for FY18. Traders also took some
relief with Finance Minister Arun Jaitley's statement that the rollout of the
Goods and Services Tax has been smooth, without causing much disruption. He
said the economy has not been disrupted and we don't expect any disruption
ahead, refuting critics who had thought that the GST rollout would impact trade
and industry. Finally, the BSE Sensex shed 8.71 points or 0.03% to 31,360.63,
while the CNX Nifty was down by 8.75 points or 0.09% to 9,665.80.
The US markets showed splendid
performance and all the indices went home with decent gains on Friday, as
investors opted to buy beaten down but fundamentally strong stocks after
previous session's drubbing. Sentiments remained up-beat following the release
of a report from the Labor Department showing much stronger than expected job
growth in the month of June. The report said non-farm payroll employment jumped
by 222,000 jobs in June following an upwardly revised increase of 152,000 jobs
in May. The street had expected employment to climb by 179,000 jobs compared to
the addition of 138,000 jobs originally reported for the previous month. Despite the stronger than expected job
growth, the unemployment rate inched up to 4.4 percent in June from 4.3 percent
in May. Economists had expected the unemployment rate to hold steady. The Labor
Department also said average hourly employee earnings rose by 0.2 percent to
$26.25. Average hourly earnings in June were up by 2.5 percent year-over-year.
Meanwhile, Traders kept an eye on developments out of the G20 summit in
Hamburg, Germany, where President Donald Trump held his first face-to-face
meeting with Russian President Vladimir Putin. The Dow Jones Industrial Average
gained 94.30 points or 0.44 percent to 21,414.34, Nasdaq surged 63.62 points or
1.04 percent to 6,153.08, and S&P 500 edged higher by 15.43 points or 0.64
percent to 2,425.18.
Crude oil futures tumbled again
on Friday, making it another week of losses, after oil services firm Baker
Hughes reported that the number of active U.S. rigs drilling for oil rose by 7
to 763 rigs this week, the 24th weekly rise in 25 weeks. While, the OPEC
exports hit a 2017 high, casting doubt over efforts by producers to curb global
oversupply. Traders even overlooked the good economic data of the U.S. creating
222,000 new jobs in June. Benchmark crude oil futures for August delivery declined
by $1.29 or 2.8 percent to $44.23 on the New York Mercantile Exchange. In
London, Brent crude for August delivery ended up by $1.36 or 2.8 percent at
$46.75 a barrel on the ICE.
Indian rupee
ended substantially stronger against dollar on Friday due to selling of
American currency by banks and exporters. Besides, dollar weakness against some
other currencies overseas added to the rupee gains. Some support also came with
report that net direct tax collection grew by 14.8 per cent to Rs 1.42 lakh
crore at the end of first quarter on account of surge in advance tax payments.
As per the finance ministry the net direct tax collection represents 14.5 per
cent of the total Budget Estimates of direct taxes of Rs 9.8 lakh crore for
2017-18. The domestic currency remained unaffected by the weak trade in
domestic equity market. On the global front, dollar hit a seven-week high
against yen on Friday after the Bank of Japan increased its purchases of government
bonds, expanding monetary policy at a time when other major central banks are
moving towards tightening. Finally, the rupee ended at 64.59, 18 paise stronger
from its previous close of 64.77 on Thursday.
The
FIIs as per Friday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4829.86 crore against gross selling
of Rs 4223.68 crore, while in the debt segment, the gross purchase was of Rs
2523.51 crore with gross sales of Rs 930.13 crore.
The US markets came out of the
sluggish mood in the last session and posted good gains on getting an upbeat
job data, with the Labor Department showing much stronger than expected job
growth in the month of June. The Asian markets have made mostly a positive start
led by the Japanese market which is up by over half a percent in early deals as
the yen fell. The Chinese shares were lower even though producer prices showed
robust demand in Asia's largest economy. The Indian markets showed good
recovery attempt in the final hours of the last session but ended marginally in
red. Today, the start of the new week is likely to be in green tailing the
positive global cues, though traders will be eyeing the start of the official
earnings season this week to gauge the performance of India Inc in the first
quarter. Traders will also be getting some support with reports that foreign
investors have pumped in nearly USD 23 billion into the Indian capital markets
in January-June 2017 on several factors, including expectations of accelerated
pace of reforms. Meanwhile, Prime Minister Narendra Modi, noting that the GST
(Goods and Services Tax), which was implemented last week, was the biggest tax
reform in the last 70 years has said it would help businesses and create a
unified market of 1.3 billion people. Modi also underlined support for free and
open trade regime of World Trade Organization (WTO). There will be some buzz in
the aviation sector, as the Finance Ministry has exempted aircraft imported on
lease from the 5 per cent Goods and Service Tax (GST) levy. Under the recently
introduced GST regime, aircraft imported on lease basis attracted integrated
GST (iGST) of 5 per cent.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9665.80
|
9644.22
|
9685.82
|
BSE Sensex
|
31360.63
|
31289.40
|
31429.07
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ITC
|
99.20
|
334.30
|
332.17
|
337.32
|
Bank of Baroda
|
91.83
|
160.55
|
159.05
|
163.00
|
ICICI Bank
|
84.77
|
289.70
|
288.10
|
292.40
|
Vedanta
|
82.31
|
257.10
|
255.15
|
260.20
|
Reliance Industries
|
81.94
|
1491.15
|
1454.85
|
1512.60
|
Tata Motors has slashed prices of its commercial vehicles post GST in order to pass on benefits to its customers.
Bajaj Auto's Austrian arm KTM has reduced the prices of bikes in India by up to Rs 8,600 to pass on the GST benefit to customers.
Infosys is planning to open its next Technology and Innovation Hub in North Carolina and hire 2,000 American workers in the state by 2021.
Wipro is mulling alternative proposals for its second project in Kolkata.