Swinging in between gains and
losses, domestic benchmark indices ended a choppy day of trade with marginal
gains on Monday, as IT, FMCG and TECK stocks witnessed buying. After making
cautious start, key indices fell sharply as traders got anxious with FICCI's
statement that the recent rise in smuggling in the northeastern region can be
attributed to economic distress insinuated by Covid-19 pandemic. After that,
key gauges trimmed some of their initial losses and traded in range-bound for
most part of the day, as rising coronavirus cases in the country kept the
inventors nervous. Sentiments remained in lackluster mood with former Reserve
Bank Governor Raghuram Rajan stated that the negative GDP growth numbers should
alarm everyone. Emphasising on the importance of government relief or support
in the given scenario, he pointed out that it is meagre so far. However,
domestic markets erased all the losses and managed to end marginally higher, taking
support from Finance Minister Nirmala Sitharaman's statement that India's
commitment to reform is being taken seriously by foreign investors, which is
evident from the good inflow of FDI even during the time of COVID-19. Between
April-July, the Foreign Direct Investment (FDI) into India stood at $20
billion. Market participants also took a note of Former Union finance minister
P Chidambaram's statement that the government needs to borrow more to help
stimulate demand and revive the country's Gross Domestic Product (GDP) growth.
He also suggested some measures to raise money which include relaxing FRBM
norms, accelerating disinvestment and borrowing money from global banks.
Finally, the BSE Sensex rose 60.05 points or 0.16% to 38,417.23, while the CNX
Nifty was up by 21.20 points or 0.19% to 11,355.05.
The US markets were closed on
Monday on account of Labor Day.
Indian rupee depreciated
significantly against dollar on Monday, on account of sustained dollar demand
from importers and banks. Sentiment remained downbeat despite finance ministry
in its Monthly Economic Review for August has said the country is witnessing a
V-shaped pattern of recovery. Meanwhile, former Union finance minister P
Chidambaram suggested that the government to borrow more to help stimulate
demand and revive the country's Gross Domestic Product (GDP) growth. He also
suggested some measures to raise money which include relaxing FRBM norms,
accelerating disinvestment and borrowing money from global banks. On the global
front; euro-dollar exchange rate steadied above $1.18 on Monday as traders took
stock of the latest U.S. jobs data and prepared for the European Central Bank
meeting on Thursday to see if policymakers will introduce yet more stimulus.
Finally, the rupee ended at 73.35, 21 paise weaker from its previous close of
73.14 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 3796.92 crore against gross
selling of Rs 6604.23 crore, while in the debt segment, the gross purchase was
of Rs 1361.68 crore with gross sales of Rs 244.75 crore. Besides, in the hybrid
segment, the gross buying was of Rs 5.13 crore against gross selling of Rs
23.00 crore.
The US markets remained closed on
Monday on account of Labor Day. Asian markets are trading mostly in green on
Tuesday as Japan released revised gross domestic product figures for the second
quarter. Indian markets ended marginally higher after a volatile session on
Monday led by IT, FMCG stocks and heavyweights HDFC and RIL. Today, the markets
are likely to make flat-to-positive start following gains in Asian peers. Some
support will come with report that the Reserve Bank of India (RBI) announced a
special round of simultaneous sale and purchase of government securities
(G-Secs) for Rs 10,000 crore each, on September 10, 2020. It has released
details of the sale and purchase of securities, which will be done using the
multiple price auction method. Traders may take note of the Kamath Committee's
recommendations for Covid-19-related debt restructuring. The committee has
recommended financial ratios for 26 sectors which could be factored in by
lending institutions while finalising a resolution plan for a borrower.
Meanwhile, a day after a record spike of over 90,000, India has seen a major
drop in the number of new cases. The country's tally now stands at 4,277,584.
Though, geo-political concerns may weight down on gains in the markets.
According to reports, an incident of firing took place on the Line of Actual
Control in Eastern Ladakh sector where troops of India and China have been
engaged in a stand-off for over three months. Traders will be concerned as
global credit rating agency Fitch revised India's FY21 central government
fiscal deficit forecast to 8.2 percent of GDP from 7.2 percent due to higher
than anticipated willingness of govt to spend amid weak revenue collection.
There may be some cautiousness with Moody's Investors Service's report that the
continued rise in new infection rates across parts of Europe and Asia
highlights the risk of a second wave of infections which could lead to renewed
closures and a sustained pullback in consumption. The MSME stocks will be in
focus as the Finance Ministry said banks have sanctioned loans of about Rs
1,61,017 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme
(ECLGS) for the MSME sector reeling under the slowdown caused by the
coronavirus pandemic. There will be some reaction in aviation stocks as rating
agency ICRA said air passenger traffic in the country logged a 26 per cent month-on-month
growth at 2.6 million passengers in August, with airlines scaling up capacity
by 27 per cent over July.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,355.05
|
11,277.45
|
11,406.90
|
BSE Sensex
|
38,417.23
|
38,145.34
|
38,604.52
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
826.19
|
149.40
|
147.60
|
151.60
|
Bharti Infratel
|
547.29
|
231.00
|
220.01
|
238.71
|
Zee Entertainment
Enterprises
|
429.80
|
223.95
|
217.91
|
227.91
|
State Bank of India
|
356.88
|
207.90
|
205.65
|
209.90
|
ITC
|
326.64
|
189.10
|
183.10
|
192.80
|
L&T's construction arm -- L&T construction has won prestigious package for its Power Transmission and Distribution Business.
HDFC has approved home loans of over Rs 47,000 crore to more than 2 lakh first-time homebuyers under the government's CLSS.
TCS has partnered with Transnet Port Terminals in South Africa to help the latter develop an integrated online marketplace platform.
State Bank of India has planned a voluntary retirement scheme under which about 30,190 employees are eligible.