Extending gains for second
straight session, Indian stock markets ended around one percent higher each on
Monday, as signs of progress in developing a Covid-19 treatment offset fears
about resurgence in virus cases that could risk stifling an economic recovery.
Markets made optimistic start and stayed in green for whole day, amid firm cues
from global markets. Traders took encouragement with union minister Nitin
Gadkari's statement that focus on critical infrastructure building through an
integrated approach, right from a number of strategic tunnels and bridges to 22
green expressways, is bound to place India in the league of advanced nations
like the US, UK and Australia in the coming two years. Investors got some
comfort with data showing that investments through participatory notes
(P-notes) in the domestic capital market soared to Rs 63,288 crore till
July-end. Domestic bourses added more strength in second half of the session,
as traders remain energized with Ministry of Finance stating that businesses
with an annual turnover of up to Rs 40 lakh are Goods and Services Tax (GST)
exempt and those with a turnover up to Rs 1.5 crore can opt for the Composition
Scheme and pay only one percent tax. Initially, this limit was Rs 20 lakh.
Adding to the optimism, the government has come out with norms for the
enforcement of rules of origin provisions for allowing preferential rate of
customs duties on products imported under free trade agreements. The new norms have
been framed with a view to checking inbound shipments of low quality products
and dumping of goods by a third country routed through an FTA partner country.
Traders also took a note of US India Strategic and Partnership Forum (USISPF)
president Mukesh Aghi's statement that India needs to look at environmental,
social and governmental (ESG) factors to attract major investors and get the
sustained foreign direct investment (FDI) of $100 billion per annum that the
country needs to get back to 8-9 percent growth. Finally, the BSE Sensex rose
364.36 points or 0.95% to 38,799.08, while the CNX Nifty was up by 94.85 points
or 0.83% to 11,466.45.
The US markets ended higher on
Monday as hopes for a potential COVID-19 treatment bolstered trading for more
growth-sensitive sectors that have lagged the rest of the market. The Food and
Drug Administration (FDA) announced that it has issued an emergency use
authorization for investigational convalescent plasma for the treatment of
COVID-19 in hospitalized patients. The FDA concluded convalescent plasma may be
effective in treating COVID-19 and that the known and potential benefits of the
product outweigh the known and potential risks. FDA Commissioner Dr. Stephen
Hahn said I am committed to releasing safe and potentially helpful treatments
for COVID-19 as quickly as possible in order to save lives. He added the data
from studies conducted this year shows that plasma from patients who've
recovered from COVID-19 has the potential to help treat those who are suffering
from the effects of getting this terrible virus Adding to the positive sentiment,
a private report said the Trump administration is considering fast-tracking an
experimental coronavirus vaccine from the U.K. for use in America ahead of the
presidential election.
Crude oil futures settled in
green on Monday as a pair of tropical storms, which are expected to make
landfall within days of each other, closed in on the Gulf of Mexico, forcing
the shutdown of offshore drilling rigs responsible for more than half of the
region's crude production and nearly half of its natural-gas output. Based on information
submitted by operators, the Bureau of Safety and Environmental Enforcement
estimated that 57.6% of current Gulf oil production has been shut in, along
with 44.6% of natural-gas output. That equates to around 1.1 million barrels a
day of oil output. Crude oil futures for October rose 23 cents or 0.5 percent
to settle at $42.57 a barrel on the New York Mercantile Exchange. October Brent
crude gained 43 cents or 1 percent to settle at $44.78 a barrel on London's
Intercontinental Exchange.
Indian rupee ended substantially
stronger on fresh selling of American currency by banks and exporters, in line
with upbeat domestic equities and sustained foreign fund inflows. Besides,
weaker American dollar against key global currencies also supported the Indian
unit. Sentiments remained upbeat as Ministry of Finance has said that
businesses with an annual turnover of up to Rs 40 lakh are Goods and Services
Tax (GST) exempt and those with a turnover up to Rs 1.5 crore can opt for the
Composition Scheme and pay only one percent tax. Meanwhile, investments through
participatory notes (P-notes) in the domestic capital market soared to Rs
63,288 crore till July-end. P-notes are issued by registered foreign portfolio
investors (FPIs) to overseas investors who wish to be part of the Indian stock
market without registering themselves directly. On the global front; dollar
fell on Monday, riskier currencies gained and European markets opened higher,
with the pickup in sentiment to U.S. regulators approving a treatment for
COVID-19 patients. Finally, the rupee ended at 74.32, 52 paise stronger from
its previous close of 74.84 on Friday.
The FIIs as per Monday's data
were net buyers in both equity segment and debt segment. In equity segment, the
gross buying was of Rs 3915.56 crore against gross selling of Rs 3477.79 crore,
while in the debt segment, the gross purchase was of Rs 1445.97 crore with
gross sales of Rs 477.75 crore. Besides, in the hybrid segment, the gross
buying was of Rs 3.03 crore against gross selling of Rs 13.41 crore.
The US markets ended higher on
Monday following upbeat news on the
coronavirus front, with companies that have been hit hardest by the pandemic,
like cruise operators and airlines, helping lead the markets higher. Asian
markets are trading mostly in green on Tuesday following rally on Wall Street
overnight. Indian markets ended higher on Monday led by financial stocks and
Eicher Motors. Today, the markets are likely to continue optimism with positive
start for second consecutive day tracking firm global cues. Traders will be
getting some encouragement with a private report that the phase 2 human clinical
trial of the Oxford COVID-19 vaccine candidate by Pune-based Serum Institute of
India (SII) is set to begin from Tuesday. The observer-blind, randomised
controlled study to determine the safety and immunogenicity of Covishield on
healthy Indian adults will begin at Bharati Vidyapeeth Medical College and
Hospital in Pune. Some support will also come as ratings agency Crisil said it
expects India's retail food inflation, measured through the Consumer Price
Index (CPI), to ease in the second half of this financial year owing to the
effect of high base of previous year coupled with a bumper rabi harvest and
good prospect of kharif harvest. Traders may take note of report that the
government is considering a proposal to permit foreign direct investment (FDI)
in limited liability partnership (LLP) firms engaged in construction
development with a view to attracting overseas fund inflows. Meanwhile, the
government has extended the validity of expiring driving licence and motor
vehicle documents till December 31 in view of the prevailing condition in the
country due to coronavirus. Though, rising coronavirus cases in the country may
keep upside in check. India has recorded 59,696 coronavirus cases in the past
24 hours, taking its total to 3,164,881. With 854 fatalities reported on
Monday, the country's death toll has surged to 58,546 - only a notch below
Mexico. Telecom stocks will be in focus as the Supreme Court reserved its
judgment on the AGR case after several rounds of hearing. The court observed
that if telecom companies are unwilling to pay their dues, it would direct the
Union government to cancel their spectrum allocation and licence.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,466.45
|
11,418.99
|
11,505.59
|
BSE Sensex
|
38,799.08
|
38,598.24
|
38,947.42
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Zee Entertainment
Enterprises
|
746.94
|
201.60
|
195.41
|
205.81
|
State Bank of India
|
538.67
|
201.45
|
199.10
|
203.30
|
NTPC
|
491.55
|
105.40
|
103.44
|
107.69
|
ICICI Bank
|
329.08
|
380.35
|
375.74
|
383.09
|
Tata Motors
|
312.97
|
121.20
|
120.34
|
122.54
|
NTPC has received the approval of Niti Aayog and DIPAM to set up a wholly-owned company for its renewable energy business.
State Bank of India has received an approval to raise Rs 8,931 crore.
Maruti Suzuki India's multi-purpose vehicle XL6 has crossed the 25,000-unit sales milestone in a year of its launch.
Axis Bank is planning to acquire 17.002% of the equity share capital of Max Life Insurance Company, resulting in total ownership of 18.0% post the transaction.