Indian equity indices remained in
good mood on Tuesday, with Sensex and Nifty closing above their crucial
psychological levels of 39,100 and 11,650, respectively. Markets made a
cautious start of the day, as India's exports fell by 9.71% in the month of
June 2019 over the same period in the previous year, due to a fall in shipments
of gems and jewellery, engineering goods and petroleum products. However,
markets soon staged sharp recovery, taking support with Finance Minister
Nirmala Sitharaman's statement that GST collection of states and union
territories (UTs) increased to Rs 5.18 lakh crore in the full financial year
2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18. Key
indices extended their gains in the last hour of the trade, tracking firm
European markets. The street remained positive with Commerce and Industry
Minister Piyush Goyal's statement that India is open to ideas from all sides to
strengthen investors' confidence so that they can invest and participate in the
country's development. He added that the government aims to give confidence to
international investors, with the best of technologies, to come to India and
invest. Some support also came with a private report stating that domestic
catalysts suggest a largely positive outlook for the bond market in the
short-term, despite the recent correction in Indian bond yields. Finally, the
BSE Sensex gained 234.33 points or 0.60% to 39,131.04, while the CNX Nifty was
up by 74.25 points or 0.64% to 11,662.60.
The US markets ended lower on
Tuesday after President Donald Trump said that US-China trade talks still have
a long way to go and once again threatened to impose tariffs on another $325
billion worth of Chinese goods. Further, cautiousness also prevailed in the
markets as a mixed batch of US economic data led to uncertainty about the
near-term outlook for interest rates. Raising concerns the Federal Reserve
could refrain from cutting rates later this month, the Commerce Department
released a report showing much stronger than expected US retail sales growth.
The Commerce Department said retail sales rose by 0.4 percent in June, matching
the downwardly revised increase in May. Street had expected retail sales to
inch up by 0.1 percent. Closely watched core retail sales, which exclude autos,
gasoline, building materials and food services, jumped by 0.7 percent in June
after climbing by an upwardly revised 0.6 percent in May. ING Chief
International Economist James Knightley said the report suggests consumer
spending rose robustly in the second quarter, which he expects to help keep GDP
growth above 2 percent. Meanwhile, a separate report from the Fed showed US
industrial production was unexpectedly flat June, as a steep drop in utilities
output offset increases in manufacturing and mining output. The Fed said
industrial production was unchanged in June after climbing by 0.4 percent in
May. Street had expected production to edge up by 0.2 percent. Besides, traders
were also digesting earnings news from big-name companies such as Goldman
Sachs, Johnson & Johnson, JPMorgan, and Wells Fargo. Dow Jones Industrial
Average declined 23.53 points or 0.09 percent to 27335.63, Nasdaq fell 35.39
points or 0.43 percent to 8222.80 and S&P 500 was down by 10.26 points or
0.34 percent to 3004.04.
Crude oil futures ended sharply
lower on Tuesday on reports that US Secretary of State Mike Pompeo said Iran is
ready to enter negotiations over its missile program, easing concerns about
tensions between Washington and Tehran that had put the flow of oil in the
Middle East at risk. The report followed concerns that Iran may have seized a
small United Arab Emirates oil tanker traveling through the Strait of Hormuz
over the weekend. Besides, US oil inventories data are due out from the Energy
Information Administration (EIA) on Wednesday. Benchmark crude oil futures for
August declined $1.96 or 3.3 percent to settle at $57.62 a barrel on the New
York Mercantile Exchange. September Brent dropped $2.13 or 2 percent to settle
at $64.35 a barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against dollar on Tuesday, due to
fresh demand for the American currency from banks and importers and rising
crude oil prices. Traders remained concerned as the country's exports entered
the negative zone after a gap of eight months. According to the government
data, India's exports fell by 9.71% in the month of June 2019 over the same
period in the previous year, due to a fall in shipments of gems and jewellery,
engineering goods and petroleum products. US dollar's gain against other
currencies overseas also weighed on the local unit. On the global front, euro
fell on Tuesday as investors waited for a sentiment reading of Germany's
economy, although the prospect of more central bank easing starting with the
Federal Reserve later this month kept currency moves limited. Finally, the
rupee ended at 68.71, 17 paise weaker from its previous close of 68.54 on
Monday.
The FIIs as per Tuesday'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 3623.46 crore against gross
selling of Rs 3813.41 crore,while in the debt segment, the gross purchase was
of Rs 1698.25 crore with gross sales of Rs 649.19 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.03 crore against gross selling of Rs 5.94
crore.
The US markets settled lower on
Tuesday after President Donald Trump said an agreement with China on trade
tariffs has a long way to go. Asian
markets are trading lower in early deals on Wednesday following overnight
developments on the US-China trade front. Markets closed higher on Tuesday as
all sectoral indices were higher except IT which lost over half a percent.
Today, the start of the session is likely to be on negative side on weak global
cues. There will be some cautiousness with Chief Economic Advisor K V
Subramanian's statement that there is a need to tap foreign capital to
accelerate growth from the current level of 7 per cent to 8 per cent. He added
that achieving $5-trillion economy by 2024-25 is possible although the goal is
slightly stretched. Traders may also remain concern on report that Tax
officials detected Rs 37,946 crore worth of tax fraud in 2018-19 and Rs 6,520
crore in the April-June period of the current financial year after the GST
implementation. However, traders may
take some support later the day With Finance Minister Nirmala Sitharaman' s
statement that total bad loans of commercial banks declined by Rs 1.02 lakh
crore to Rs 9.34 lakh crore in the 2018-19 fiscal on the back of steps taken by
the government. The government has instituted a comprehensive 4R's strategy for
recognition of non-performing assets (NPAs) transparently, resolution and
recovery of value from stressed assets, recapitalising of public sector banks
(PSBs) and reforms in PSBs so as to reduce their bad loans. Meanwhile, the
government has invited proposals from entities for the deployment of electric
vehicle charging infrastructure in big and smart cities. Proposals are invited
from entities that intend to develop EV charging infrastructure in million-plus
cities as per the 2011 census; and smart cities as notified by the Ministry of
Housing and Urban Affairs. There will be some buzz in the solar stocks on
report that a total of 80.46 GW of renewable energy capacity has been installed
in the country as on June 30, 2019 which includes 29.55 GW from Solar &
36.37 GW from Wind power. The retail sector stocks will also keep buzzing with
Commerce and industry minister Piyush Goyal stating that India's foreign direct
investment (FDI) norms in the multi-brand retail sector are a very well thought
out policy which are unlikely to change any time soon. He said the 49 per cent FDI threshold in multi-brand
retail must be respected in letter and spirit by all foreign brands. There will
be some earnings announcements too to keep the markets buzzing.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE Nifty
|
11,662.60
|
11,601.02
|
11,697.12
|
BSE
Sensex
|
39,131.04
|
38,926.24
|
39,254.86
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,286.82
|
103.85
|
95.23
|
109.48
|
Tata Motors
|
390.25
|
170.00
|
162.38
|
174.28
|
SBIN
|
162.52
|
364.35
|
359.33
|
367.68
|
Indiabulls Housing
Finance
|
144.07
|
646.35
|
622.70
|
660.85
|
ONGC
|
128.65
|
152.25
|
150.50
|
154.20
|
Cipla's wholly owned subsidiary -- Cipla EU has entered into a joint venture agreement with Jiangsu Acebright for incorporation of a joint venture company in China.
NTPC has raised Rs 4,300 crore through bonds, which would be used for capital expenditure and general corporate requirement.
HDFC Bank and Government of India's Common Service Centre SPV have launched a co-branded Small Business MoneyBack Credit Card.
Tech Mahindra's CSR arm --Tech Mahindra Foundation has set up a SMART Academy for Digital Media in Hyderabad.