Indian equity benchmarks
cherished the economic survey on Thursday, with Sensex and Nifty closing higher
by 69 and 30 points, respectively. After a firm start, key indices remained
positive for the whole day, with Steel Minister Dharmendra Pradhan's statement
that we are working on a mission mode to build India into a $5 trillion
economy as envisioned by Prime Minister Narendra Modi. Adding more comfort
among market participants, Commerce & Industry Minister Piyush Goyal said
that India will get additional $217 million of revenue from the retaliatory
tariffs it imposed on 28 American products. Despite some volatility, markets
managed to hold their gains, as the economic survey predicated 7% Gross
Domestic Product (GDP) growth for FY20 on stable macro-economic conditions.
Traders remained positive with the United Nations Conference on Trade and
Development's (UNCTAD) annual World Investment Report (WIR), which found that
Foreign Direct Investment (FDI) into Bahrain and India rose to $1.5 billion and
$42 billion respectively in 2018. India's $42 billion also represented a 6%
rise from the previous year, as well as the largest share of South Asia's $54
billion total. Finally, the BSE Sensex gained 68.81 points or 0.17% to
39,908.06, while the CNX Nifty was up by 30.00 points or 0.25% to 11,946.75.
The US markets remained closed on
Thursday in observance of Independence Day.
Indian rupee ended considerably stronger against dollar on
Thursday on increased selling of the American currency by exporters and banks
and easing crude oil prices. Sentiments remained positive after the Economic
Survey, tabled in Parliament by finance minister Nirmala Sitharaman projected
GDP (gross domestic product) growth at 7 percent in the 2019-20 fiscal year
from an estimated 6.8 percent in the previous year. Investment rate has been
seen picking up in FY20 on higher credit growth and improved demand. The
domestic unit also found support from dollar weakened overseas. On the global
front, euro was stuck near two-week lows on Thursday and the dollar drifted
away from recent highs as sliding government bond yields pressured both
currencies. Finally, the rupee ended at 68.50, 39 paise stronger from its
previous close of 68.89 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 2385.51 crore against gross selling of Rs 3666.70 crore, while
in the debt segment, the gross purchase was of Rs 772.39 crore with gross sales
of Rs 1505.80 crore. Besides, in the hybrid segment, the gross buying was of Rs
1.61 crore against gross selling of Rs 0.47 crore.
The US markets remained closed on
Thursday on account of the Independence Day. Asian markets are trading mixed on
Friday ahead of the upcoming release of the US nonfarm payrolls report, which
may provide clues as to whether the Federal Reserve will cut interest rates at
its monetary policy meeting at the end of July. Indian markets ended higher for
fourth straight session on Thursday after the Finance Ministry's Economic
Survey report pegged India's growth at 7% for financial year 2019-20. Today,
the markets are likely to continue pre-budget rally with positive start as
Finance minister Nirmala Sitharaman will present her first Union Budget in the
Parliament later in the day. Investors expect that the government could
announce measures in the fiscal Budget to ease liquidity situation and boost
the slowing economy. Traders will be getting some encouragement with Former
Finance Minister Arun Jaitley's statement that Indian economic growth graph was
on an upward trajectory after past policy uncertainties have been replaced by
certainties. Traders may took note of Chief Economic Adviser K V Subramanian's
statement that India needs to accelerate investment in excess of 35% of the GDP
to achieve 8% sustained growth which is essential for becoming a $5 trillion
economy by 2024-25. However, there may be some cautiousness with subdued cues
from global markets. Also, a report stated that investment by Foreign Portfolio
Investors (FPI) witnessed a net outflow of Rs 38,931 crore in 2018-19, compared
to a net inflow of Rs 1,44,681 crore in 2017-18. There will be some buzz in the
pharma stocks with ICRA's report that Indian pharmaceutical industry is likely
to grow by 11-13 per cent in the current fiscal, on the back of healthy demand
from the domestic market, given increasing spend on healthcare along with
improving access. There will be some reaction in telecom stocks with the
Economic Survey 2018-19 stating that the telecom industry's contribution to GDP
is estimated to reach 8.2% by 2020, by when industry players are slated to also
leverage 5G technologies to connect with global markets and ring in a fully
networked, knowledge and services economy.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,946.75
|
11,923.85
|
11,969.45
|
BSE Sensex
|
39,908.06
|
39,851.23
|
39,972.00
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,081.05
|
96.25
|
93.58
|
100.53
|
Indiabulls Housing
Finance
|
309.35
|
703.85
|
687.73
|
724.48
|
Tata Motors
|
195.13
|
165.20
|
162.22
|
167.97
|
SBIN
|
195.13
|
367.40
|
365.43
|
370.13
|
UPL
|
124.88
|
698.35
|
665.52
|
718.57
|
HDFC Bank has joined hand with Manipal Global Academy of BFSI with aim to hire 5,000 freshers over the next three years, after they finish a year-long training at the institute.
L&T has acquired equity shares to an extent 60.06 percent of the total shareholding of the Mindtree and has acquired control and is categorised as promoter pursuant to Sebi.
Reliance Industries telecom arm - Jio has launched a digital literacy initiative to empower first-time internet users with digital literacy and understanding of the internet.
Power Grid Corporation of India has received an investment approval for System Strengthening - XXV in Southern Region, at an estimated cost of Rs 154.72 crore.