Indian equity benchmarks ended
the splendid performance with a gain of over half a percent on Monday, settling
at fresh all time closing high levels. Key gauges traded firmly throughout the
session and ended above their crucial 10,050 (Nifty) and 32,500 (Sensex) levels
amid rate cut optimism. Market participants expects the Reserve Bank of India
(RBI) to cut rates by 25 bps on falling inflation in the coming policy meet,
which will start tomorrow. Meanwhile, ahead of the next monetary policy review,
Reserve Bank Governor Urjit Patel on Friday called on Finance Minister Arun
Jaitley and is believed to have discussed various macro-economic issues.
Traders also took some encouragement with Finance Minister Arun Jaitley's
statement, who underlining the government's push on reforms has said that in
the last three years, the prime minister has been forcing one or two important
changes. India has to become a country where it is easy to do business and the
businesses are done in the most ethical way. Adding to the optimism, Prime
Minister Narendra Modi highlighted the success of the Goods and Services Tax
(GST) Bill and said it has transformed the economy. Terming the GST as pro-poor
and an example of cooperative federalism, he said the government's effort is to
ensure there is no extra burden on the poor. Markets extended their northward
journey in second half as market participants got some boost on report that
India's exports of engineering goods to China saw a whopping 123 percent growth
at $629 million during April-June this fiscal, driven by an upsurge in
shipments of non-ferrous metals. The country's shipments to China stood at $282
million in the April-June quarter of the previous fiscal. Finally, the BSE
Sensex surged 205.06 points or 0.63% to 32,514.94, while the CNX Nifty was up
by 62.60 points or 0.63% to 10,077.10.
The US markets closed mostly
lower on Monday, while the Dow industrials finished at an all-time high, but
the broader market's gains were hobbled by losses in the technology sector. For
the month, the Dow registered a 2.5% return, while the S&P ended up 1.9%
and the Nasdaq climbed 3.4% in July. The Nasdaq, which lost ground in June, has
posted eight positive months out of the past nine. On the economy front, the
economy in the Chicago region grew rapidly in July but cooled a bit from
earlier in the summer, indicating that businesses are still confident despite
political drama in Washington. The Chicago business barometer, or Chicago PMI,
slipped to 58.9 in July from a three-year high of 65.7 in June. On the other
hand, home-purchase contract signings jumped in June after three months of
declines, another reflection of choppy momentum in the housing market. The
pending home sales index from the National Association of Realtors rose 1.5% to
a level of 110.2. May's reading was revised upward. The Nasdaq lost 26.56
points or 0.42 percent to 6,348.12, S&P 500 edged lower by 1.8 points or
0.07 percent to 2,470.30, while the Dow Jones Industrial Average added 60.81 points
or 0.28 percent to 21,891.12.
Crude oil futures kept their
momentum going and ended higher on Monday, traders cheered news of a producers'
meeting slated for next week and possible sanctions from the U.S against
Opec-member Venezuela. With US production
possibly slowing and OPEC determined to re-balance oil markets, there are hopes
that crude oil should hang around $50 a barrel for the year. Benchmark crude
oil futures for September delivery gained $0.46 or 0.9 percent to $50.17 on the
New York Mercantile Exchange. In London, Brent crude for September delivery
ended higher by 0.3 percent at $52.62 a barrel on the ICE.
Indian
rupee ended marginally weaker against the US dollar on Monday, following fresh
demand for the US currency from banks and importers to meet the month end
dollar demand. Traders maintained cautious approach ahead of the Reserve Bank
of India's bi-monthly policy on August 02. However, the dollar's slide overseas
amid concerns over renewed show of strength on the Korean Peninsula and a
strong domestic equity market restricted the rupee's losses. On the global
front, dollar held near a 13-month low against a basket of currencies on
Monday, weighed down by political uncertainty and increased short positions,
but markets were wary of pushing it lower before data due later this week.
Finally, the rupee ended at 64.19, 4 paise weaker from its previous close of
64.15 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 5204.81 crore against gross
selling of Rs 5216.26 crore, while in the debt segment, the gross purchase was
of Rs 1316.94 crore with gross sales of Rs 275.08 crore.
The US markets once again showed
a lackluster trade and made another mixed closing in the last session, but despite
the choppy trading, the Dow reached another new record closing high. Traders
seemed reluctant to make significant moves ahead of the release of the monthly
jobs report on Friday. The Asian markets have made mostly a positive start
supported by Chinese manufacturing and South Korean export data. The Japanese
stock market too has rebounded, with the increase in commodity prices lifting
resources stock. The Indian markets made a jubilant start of the new week,
coming from a cautious start the benchmarks posted handsome gains, reaching new
record highs in the last session. Today, the start of the new week is likely to
be in green though traders will be eyeing the RBI's policy review meeting starting
from today. Also the July Manufacturing readings too will be released later in
the day. Traders may get some support with report that the collection of
Integrated Goods and Services Tax from imports crossed Rs 20,000 crore in July
- the first month of the roll out of the new indirect tax regime. In other
positive, global rating agency Moody's has reported that India's GDP growth
will remain in the range of 6.5-7.5 percent over the next 12-18 months and GST
will support the momentum for faster growth. Meanwhile, Prime Minister Narendra
Modi met with his party MPs from several states, and emphasised the need to
ensure continuance of the "benefit chain" under GST. The prime
minister also asked small businesses and traders to register under the recently
rolled out goods and services tax. There will be some cautiousness in the
markets too, as the growth of eight core sectors slowed to 0.4% in June due to
contraction in output of coal, refinery products, fertiliser and cement. The growth rate of eight infrastructure
sectors was 7% in June last year. The oil marketing companies will keep
buzzing, as the government has asked oil marketing companies to raise the
prices of subsidised cooking gas by Rs 4 per cylinder every month. The aviation
stocks may see some action as Boeing is betting big on India saying that it is
the highest growth market in world. There will be lots of important earnings
and auto stocks will be in focus on reporting their monthly sales number.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10077.10
|
10034.07
|
10103.02
|
BSE Sensex
|
32514.94
|
32377.43
|
32599.48
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
415.48
|
312.50
|
302.38
|
318.23
|
ICICI Bank
|
215.26
|
302.60
|
297.08
|
307.28
|
ITC
|
212.47
|
285.25
|
283.07
|
288.87
|
Bank of Baroda
|
158.78
|
166.05
|
161.57
|
169.52
|
ONGC
|
138.99
|
169.40
|
166.27
|
171.27
|
Cipla is looking to file more than 20 applications seeking approval for its generic medicines from the US health regulator this fiscal.
ITC is entering into the fruits, vegetables and other perishables segment as part of its drive to build an agri-based industry for the future.
SBI has introduced 2 tier saving bank interest rate with effect from July 31, 2017.
HDFC will issue secured redeemable non-convertible debentures worth Rs 2000 crore on a private placement basis.