Extending southward journey for
third straight session, Indian equity benchmarks ended the Monday's trade with
a cut of over half a percent. Markets started the session on pessimistic note,
as sentiments remain dampened with the Reserve Bank of India's (RBI) data
showing that after touching record highs, the foreign exchange reserves
declined by $1.113 billion to $428.797 billion in the week to July 12 - the
first fall after four consecutive weeks of gains - due to a fall in foreign
currency assets. Markets traded in tight band throughout the day as continuous
selling by foreign investors post the presentation of the Budget on July 5 and
corporate results for April - June 2019 quarter that failed to enthuse
investors, dented the overall market sentiment. Some cautiousness also crept in
with report that the Ministry of Statistics and Programme Implementation
indicated as many as 345 infrastructure projects, each worth Rs 150 crore or
more, have shown cost overruns to the tune of over Rs 3.28 lakh crore owing to
delays and other reasons. Traders shrugged off reports that Asian Development
Bank (ADB) has lowered the inflation forecast for India during the current
financial year by 0.2 percentage points to 4.1 percent, on the back of gain in
rupee and cut in the country's GDP projection. The market participants
overlooked NITI Aayog Vice Chairman Rajiv Kumar's statement that India will
achieve Gross domestic product (GDP) growth of 8 percent plus from fiscal year
2020-2021 onwards as structural reforms such as the Goods and Services Tax
(GST), Insolvency and Bankruptcy Code (IBC) are set to produce the benefits.
Meanwhile, SEBI has tweaked the formats for limited review and audit report of
listed entities in order to align them with the revised auditing standards.
This will also be applicable to entities whose accounts are to be consolidated
with the listed entity. Finally, the BSE Sensex lost 305.88 points or 0.80% to
38,031.13, while the CNX Nifty was down by 73.05 points or 0.64% to 11,346.20.
The US markets ended higher on
Monday as investors adjusted expectations around a widely anticipated rate cut
by the Federal Reserve at the end of the month and optimism about upcoming
earnings news, as a slew of big-name companies are due to report their quarterly
results this week. Amazon, Coca-Cola, AT&T, Boeing, Caterpillar, Facebook,
Alphabet, Intel, McDonald's, and Twitter are just a few of the companies due to
report their quarterly results. According to FactSet data, 79 percent of
S&P 500 companies have reported better than expected quarterly earnings so
far this earnings season. Traders were also reluctant to make significant moves
amid a quiet day on the US economic front, looking ahead to reports on new and
existing home sales, durable goods orders, and second quarter GDP in the coming
days. Besides, US-China trade negotiations were in focus, after reports that
the two sides would soon meet face-to-face. US Trade Representative Robert
Lighthizer and US Treasury Secretary Steven Mnuchin would travel to Beijing
next week. Also supporting equity markets were reports that the Congress and
the White House had reached a deal to increase spending levels and suspend the
federal debt limit for two years. Dow Jones Industrial Average added 17.70
points or 0.07 percent to 27171.90, Nasdaq gained 57.65 points or 0.71 percent
to 8204.14 and S&P 500 was up by 8.42 points or 0.28 percent to 2985.03.
Crude oil futures settled higher
with gains of over a percent on Monday as investors watched an increasingly
complicated situation in the Persian Gulf after Iran late last week seized a
British-flagged tanker, and as the UK faces a change in leadership. Oil prices
also saw support after Libya's National Oil Corporation late Friday temporarily
suspended operations at the Sharara oil field after an unidentified group shut
down of a pipeline valve, but production from the oil field resumed early
Monday. Meanwhile, the International Energy Agency (EIA) said it is ready to
act quickly and decisively in the event of a disruption to oil flow in the
region to ensure adequate global oil supplies. Benchmark crude oil futures for
August rose 59 cents or 1.1 percent to settle at $56.22 a barrel on the New
York Mercantile Exchange. September Brent gained 79 cents or 1.3 percent to
settle at $63.26 a barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against the US dollar on Monday
amid heavy selling in domestic equities and rising crude oil prices. Traders
remained concerned about the Reserve Bank of India's (RBI) data showing that
after touching record highs, the foreign exchange reserves declined by $1.113
billion to $428.797 billion in the week to July 12 - the first fall after four consecutive
weeks of gains - due to a fall in foreign currency assets. Besides, dollar's
strength against major global currencies overseas largely led to weaker rupee
sentiment. However, losses remain capped as some optimism remained among the
traders with Asian Development Bank (ADB) has lowered the inflation forecast
for India during the current financial year by 0.2 percentage points to 4.1
percent, on the back of gain in rupee and cut in the country's GDP projection.
On the global front, dollar pushed higher against the yen on Monday as
investors tempered expectations for an aggressive Federal Reserve interest rate
cut later this month. Finally, the rupee ended at 68.92, 12 paise weaker from
its previous close of 68.80 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 4815.69 crore against gross
selling of Rs 5899.51 crore ,while in the debt segment, the gross purchase was
of Rs 1839.37 crore with gross sales of Rs 1111.95 crore. Besides, in the
hybrid segment, the gross buying was of Rs 11.25 crore against gross selling of
Rs 4.93 crore.
The US markets closed in green on
Monday as investors awaited key central bank meetings for direction on the path
of interest rates and earnings from marquee names including Facebook and Amazon
that are set to report this week. Asian markets are trading higher on Tuesday
as investors braced for a busy week of US corporate earnings and potential
developments in trade negotiations. Indian markets extended losses for third
straight session on Monday led by losses in financial services stocks amid
concerns over foreign fund outflows and weak global cues. Today, the start of
session is likely to be slightly in green tracking positive trend in global
markets. Some support will come with report that betting on the infrastructure
theme, Minister of Information and Broadcasting Prakash Javadekar said that in
the next five years, the government is planning to invest around Rs 100 lakh
crore in that sector. Some support will also come with Reserve Bank of India
(RBI) Governor Shaktikanta Das' statement that he sees signs of a recovery in
economic growth and further monetary policy steps will depend on incoming data.
Besides, the government has set a target of adding 1.3 crore income tax filers
in the current financial year against 1.1 crore new filers last year. However,
there may be some cautiousness with report that investments through participatory
notes (P-notes) in the capital market slipped to Rs 81,913 crore in June after
posting growth for the previous four months. Traders may take note of report
that the Economic Advisory Council to the Prime Minister (EAC-PM) member Rathin
Roy has urged the government to issue a white paper on medium-term fiscal
framework, arguing that it would be difficult to meet the budgetary tax
collection target for 2019-20. He also expressed his reservations over the
government's decision to start raising a part of its gross borrowing programme
from external markets in foreign currencies. There will be some buzz in the
power stocks with report that the private transmission industry wants the
government to initiate a number of policy changes which would give them more flexibility
in network planning. There will be some reaction in sugar stocks with report
that outstanding payment dues to sugarcane farmers have shot up by 54 times in
just one year, as sugar mills grapple with tight liquidity amid a surge in
production. Sugar mills have held back Rs 15,565 crore of the sugarcane-growing
farmers in 2018-19, which was Rs 285 crore in the previous year. 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
|
11,346.20
|
11,298.92
|
11,395.82
|
BSE Sensex
|
38,031.13
|
37,836.46
|
38,279.66
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
2,087.59
|
91.15
|
84.40
|
95.20
|
Indian Oil Corporation
|
397.17
|
147.95
|
144.83
|
151.18
|
SBI
|
196.82
|
350.85
|
346.52
|
357.37
|
ICICI Bank
|
179.37
|
411.50
|
406.18
|
414.88
|
Vedanta
|
176.55
|
167.25
|
162.78
|
170.23
|
Axis Bank has received approval for raising funds up to Rs 18,000 crore through an issue of equity shares, depository receipts or convertible securities.
Bajaj Auto has launched an all-new version of its entry-level motorcycle model CT110 priced in the range of Rs 37,997 and Rs 44,480.
Reliance Industries' telecom arm -- Jio has become the top mobile service provider in the Kolkata circle.
Tata Steel is planning to raise $600 million in FY20 to fund the second phase of increasing production capacity at its Kalinganagar plant to 8 mtpa from 3 mtpa, and refinance old loans.