Buying in final hour of trade
helped markets to end the session with gain of around half a percent, with
frontline gauges recapturing their crucial 32,000 (Sensex) and 9,900 (Nifty)
bastions. Markets started the day on optimistic note with traders taking some
encouragement with an Asian Development Bank's (ADB) supplement report stating
that India is expected to achieve the projected growth rate of 7.4% in 2017 and
further up 7.6% next year on strong consumption demand, with South Asia leading
the growth chart in Asia and the Pacific. Upbeat earnings from market
heavyweight Reliance Industries too aided sentiments with company reporting a
consolidated quarterly net profit increase of 28%, helped by
higher-than-expected refining and petrochemicals margins and a one-time gain.
Net profit rose to Rs 9,079 crore in the quarter ended June from Rs 7,077 crore
a year earlier. Revenue rose to Rs 92,661 crore, an increase of 25.5% from Rs
73,829 crore a year ago. Markets in the second half took U-turn and entered
into red terrain, as anxiety spread among the investors with ADB's statement
that the goods and services tax is expected to boost growth in the medium term,
however there may be some teething pains as firms adjust to the new system.
Domestic bourses even went to test psychological 31,800 (Sensex) and 9,850
(Nifty) levels, but the key gauges got some support near those intraday low
levels as they trim their losses from thereon and ended near intraday high
levels, as investors continued hunt for fundamentally strong stocks. Some
support also came with the private report stating that strong import growth in
June points to continued recovery in India's domestic demand and highlighted
that economic expansion will accelerate from the April-June quarter. Finally,
the BSE Sensex surged 124.49 points or 0.39% to 32,028.89, while the CNX Nifty
was up by 41.95 points or 0.42% to 9915.25.
The US markets ended the Friday's
trade slightly in red, as a lack of major U.S. economic data kept some traders
on the sidelines. Uncertainty about the near-term outlook for the markets too
contributed to the choppy trading following the recent move to record highs by
the major averages. Market participants also stayed away from investing in
risky assets ahead of Federal Reserve meet next week, with the central bank due
to announce its latest monetary policy decision next Wednesday. Moreover, a
negative reaction to earnings news from some big-name companies weighed on Wall
Street, with shares of General Electric (GE) showing a notable decline. GE
slumped by 2.9 percent after the conglomerate reported better than expected
second quarter earnings but warned of full-year profits at the low end of its
forecasts. Shares of Microsoft (MSFT) also moved lower on the day even though
the software giant reported fiscal fourth quarter results that exceeded
forecasts. The Dow Jones Industrial Average lost 31.71 points or 0.15 percent
to 21,580.07, S&P 500 slipped by 0.91 points or 0.04 percent to 2,472.54 and
Nasdaq was down by 2.25 points or 0.04 percent to 6,387.75.
Crude oil futures tumbled on
Friday, losing over 2 percent for the day, amid concerns that next week's OPEC
meeting will fail to address the global supply glut. Sentiment soured after
data indicated that Opec's supply was set to rise compared to June reduced
investor confidence in Opec's ability to curb production. Though, reports
suggested Saudi Arabia will insist on compliance from Libya and Nigeria, the
two OPEC nations that have been thus far exempt from supply cuts. Meanwhile, oilfield
services firm Baker Hughes reported its weekly count of oil rigs operating in
the United States ticked down by one rig to a total of 764. Benchmark crude oil
futures for August delivery declined by $1.15 or 2.5 percent to $45.77 on the
New York Mercantile Exchange. In London, Brent crude for August delivery ended
lower by 2.76 percent at $47.94 a barrel on the ICE.
Snapping
its previous session's losses, Indian rupee ended stronger on Friday, on
heightened selling of the US currency by banks and exporters. The domestic
currency looked strong from the very beginning and was supported by the
positive gains in the local equity markets. Some support also came with the
private report stating that strong import growth in June points to continued
recovery in India's domestic demand and also indicating that economic expansion
will accelerate from the April-June quarter. On the global front, dollar headed
for weekly losses on Friday, wallowing at its lowest levels against euro in
nearly two years after what markets perceived as hawkish talk from European
Central Bank chief Mario Draghi. Finally, the rupee ended at 64.31, 12 paise
stronger from its previous close of 64.43 on Thursday.
The
FIIs as per Friday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
4314.40 crore against gross selling of Rs 4139.31 crore, while in the debt
segment, the gross purchase was of Rs 494.90 crore with gross sales of Rs
1639.16 crore.
The US markets ended marginally
in red in the last session, mainly reacting to some weak earnings by big names,
while the Asian markets have mostly made a soft start ahead of a Federal
Reserve interest-rate decision later in the week. Japanese market was down by
about a percent as the yen rose for a fifth day. The Indian markets supported
by some late hour buying ahead of the weekend, posted decent gains in the last
session. Today, the start of the F&O expiry week is likely to remain
cautious amid sluggish global cues, though some good earnings during the
weekend will support the market from any major fall. Meanwhile, Finance
Minister Arun Jaitley has said demonetisation and GST will make cash
transactions a lot more difficult and lead to greater compliance as well as
expansion of tax base. The banking
sector will keep buzzing, as RBI Deputy Governor Viral Acharya has said the
cleaning of banks' balance sheet is the "number one priority" for the
central bank. Last month, he had said that targeted interventions like reducing
standard asset provisions for home loans, which will make them cheaper, will
help revive the sagging growth rather than rate cuts. The aviation stocks will
be in action on reports that domestic air traffic were up 20% in June. Domestic
airlines flew 95.86 lakh passengers in June, registering a growth of 20 per
cent over the 79.75-lakh passengers flown during the same month in the previous
year. Port and Shipping's stocks too will be buzzing, as the Major Port
Authorities Bill, introduced in Parliament, seeks to convert 11 of the 12 ports
owned by the Centre from trusts into authorities, as part of a compromise plan
drafted by the Nitin Gadkari-led Shipping Ministry. There will be lots of
important earnings announcements that will keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9915.25
|
9860.60
|
9947.30
|
BSE Sensex
|
32028.89
|
31871.14
|
32124.44
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Reliance Industries
|
222.05
|
1585.00
|
1556.07
|
1602.82
|
Wipro
|
163.92
|
286.05
|
280.57
|
291.22
|
ITC
|
131.74
|
288.90
|
286.38
|
291.58
|
Bharti Airtel
|
109.45
|
411.30
|
403.60
|
418.00
|
Hindalco
|
98.97
|
214.55
|
209.83
|
217.43
|
Wipro has reported 1.15% rise in its consolidated net profit at Rs 2,082.60 crore for the quarter ended June 30, 2017 as compared to Rs 2,059.00 crore for the corresponding quarter in the FY17.
Kotak Mahindra Bank has received an approval from its shareholders for raising up to Rs 65,000 crore to fund business expansion.
Tata Motors has rolled out the first batch of its soon-to-be launched 5-seater SUV, the Nexon from its Ranjangaon facility.
Reliance Industries has reported 28.29% rise in its consolidated net profit at Rs 9,079 crore for the quarter ended June 30, 2017 as compared to Rs 7,077 crore for the corresponding quarter in the FY17.