Monday turned out to be a
fabulous day of trade for Indian equity markets, with bulls tightening their
grip with frontline indices ending at all time closing highs. Sensex surpassed
its crucial 31,700 level, while Nifty50 achieved 9,750 mark for the first time
ever despite trading remained shut on NSE in cash and F&O segment for 3
hours in the morning trade due to a technical glitch. Markets traded jubilantly
throughout the session on report that Associated Chambers of Commerce and
Industry of India (Assocham) said that the Goods and Services Tax (GST) will
boost the competitiveness of micro, small and medium enterprises (MSMEs).
Traders also took some encouragement after Prime Minister Narendra Modi, noting
that the GST, 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). Adding to the optimism, Union
minister Mukhtar Abbas Naqvi said that the new tax regime would prove to be a
game changer for the country's economy, terming the GST a revolutionary reform
taken in the interest of common people and small traders. The introduction of
the new tax system by the Narendra Modi Government was the biggest economic
reform since the Independence. Some support also came with reports that Foreign
Portfolio Investment (FPI) inflows during the period between January-June 2017
(H12017) stood at nearly $23 billion into the Indian capital markets, largely
driven by several factors, including expectations from the government that it
would speed up development and economic reforms. Finally, the BSE Sensex surged
355.01 points or 1.13% to 31,715.64, while the CNX Nifty was up by 105.25
points or 1.09% to 9,771.05.
The US markets closed mostly
higher on Monday, with the Nasdaq and S&P 500 finishing higher as a pair
embattled sectors, technology and energy, drew bidders, while the Dow
industrials closed fractionally lower. Fed Chair Janet Yellen's semi-annual
testimony may be the highlight this week for investors looking for clues on
further interest rate hikes. She will testify on Wednesday and Thursday. The
New York Federal Reserve reported in its latest monthly survey of consumer
expectations that consumers expect to boost spending in the months ahead and
voiced confidence they are more likely to find a job and less likely to lose
one in a strong labor market. Nearly 35 percent of the 1,300 heads of household
included in the June poll said they were better off economically than a year
ago, a record in the four years the survey has been conducted. On the economy
front, consumer credit expanded in May at the fastest rate in seven months, in
what could be a sign that strong levels of confidence will lead to growth in
consumption. US consumer credit rose at a seasonally adjusted annual rate of
5.8%, for growth of $18.4 billion, in May. The Nasdaq added 23.31 points or
0.38 percent to 6,176.39, S&P 500 edged higher by 2.25 points or 0.09
percent to 2,427.43, while the Dow Jones Industrial Average lost 5.82 points or
0.03 percent to 21,408.52.
Crude oil futures though
recovered to end higher on Monday but sentiment on oil remained negative as
fears grew that rising output from the United States, Nigeria and Libya would
continue to weigh on Opec and its allies' efforts to rein in supply. Though, OPEC
is expected to insist Libya and Nigeria take part in the cartel's supply quota
plan. The two African nations have been exempt for the past six months, but
production there has risen more than OPEC anticipated. Traders were also
waiting for mid-week testimony from Federal Reserve Chair Janet Yellen for
clues about when the Fed will again raise interest rates. Benchmark crude oil
futures for August delivery added $0.17 or 0.3 percent to $44.40 on the New
York Mercantile Exchange. In London, Brent crude for August delivery ended up
by $0.37 at $46.93 a barrel on the ICE.
Rising
for the third straight day, Indian rupee ended marginally higher against dollar
on Monday, due to sustained selling of the US currency by exporters and banks.
Sentiments remained positive with the report that Foreign Portfolio Investment
(FPI) inflows during the period between January-June 2017 (H12017) stood at
nearly $23 billion into the Indian capital markets, largely driven by several
factors, including expectations from the government that it would speed up
development and economic reforms. Moreover, the domestic indices zoomed to
record highs clearing the way for the rupee's up-move, but the dollar made
headway overseas after US jobs data, restricting the further move. On the
global front, dollar traded at a two-month high against yen on Monday, helping
to lift a broader dollar index, as the gap between US rates and Japanese rates
favored the US currency for now. Finally, the rupee ended at 64.53, 6 paise
stronger from its previous close of 64.59 on Friday.
The
FIIs as per Monday'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
3717.12 crore against gross selling of Rs 4136.98 crore, while in the debt
segment, the gross purchase was of Rs 1603.15 crore with gross sales of Rs
1130.23 crore.
The US markets turned into mood
of consolidation and posted modest gains in last session after initially showing
a lack of direction, traders remained cautious ahead of Federal Reserve Chair
Janet Yellen's semiannual testimony before Congress. The Asian markets have
made a mixed start, while some of the indices are up by about half a percent
others are modestly in red on low trading volumes, as investors awaited a
potential new catalyst for further moves. The Indian markets despite the
technical glitch at NSE which disrupted trade at the premier bourse for almost
half of the day, managed to reach their highest levels in last session. Today,
the start is likely to be a bit cautious on mixed global cues. On the domestic
front there will be some concern with a terror attack on Amarnath pilgrims in
Kashmir. Meanwhile, IMF chief Christine Lagarde, warning against complacency in
the current phase of global economic recovery has asked the members of G20
group, which includes India, to step up reforms by reducing trade barriers and
subsidies to promote a level playing field. The auto sector stocks will be in
somber mood on SIAM's report that domestic automobile sales saw a muted growth
of one per cent in June as the passenger vehicle (cars, utility vehicles and
vans) segment declined more than 11 per cent. A four per cent growth in
two-wheelers, however, helped the industry remain in the green. Sugar stocks
too will be in action, as the government has hiked the import duty on sugar
from 40 per cent to 50 per cent, to check cheap imports. Cheaper imports have
been adversely affecting domestic sugar mills.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9771.05
|
9684.28
|
9819.98
|
BSE Sensex
|
31715.64
|
31535.24
|
31832.22
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Bank of Baroda
|
60.39
|
166.60
|
164.60
|
168.05
|
Hindalco
|
32.25
|
195.80
|
194.13
|
197.33
|
SBI
|
20.96
|
285.55
|
283.50
|
287.30
|
Bharti Airtel
|
18.94
|
405.70
|
393.85
|
413.85
|
Power Grid
|
16.00
|
211.35
|
210.23
|
212.23
|
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ONGC's overseas arm -- ONGC Videsh -- has received two-year extension to explore Vietnamese oil block in the contested waters of the South China Sea.
Lupin has received final approval for its Flucytosine Capsules USP, 250 mg and 500 mg from the USFDA to market a generic version of Valeant Pharmaceuticals International Inc's Ancobon Capsules, 250 mg and 500 mg.