Extending northward journey for
second straight session, Indian equity benchmarks ended Friday's session with
gains of over one and half percent each, propelled by stellar gains in
index-heavyweight Reliance Industries amid positive sentiment in global markets
and fresh foreign fund inflows. Key indices made positive start and managed to
keep heads above water, as traders took some support with Prime Minister
Narendra Modi's statement that economic indicators show that India is ready for
a swift bounce back as business activity and demand are back to the level seen
before the Covid-19 pandemic. Buying further crept in as United Nations
Conference on Trade and Development (UNCTAD) said that India's economy could
prove the most resilient in South Asia and its large market will continue to
attract market-seeking investments to the country even as it expects a dramatic
fall in global foreign direct investment (FDI). Domestic indices extended their
upside in late afternoon session, taking support from report that opening of
the coal sector to private players will generate jobs, reduce dependence on
fuel import, stimulate the economy and catalyse the country's path towards a
$5-trillion economy. Adding to the optimism, State Bank of India's (SBI)
chairman Rajnish Kumar said that there is enough liquidity available in the
system and also interest rates have moderated to a large extent. He further
states that both the RBI and the government have taken measures to bring back
the economy, derailed by the pandemic, back on track. Traders ignored Asian
Development Bank (ADB) in a supplement to its Asian Development Outlook (ADO)
has forecasted that the Indian economy is expected to contract by 4% during the
current financial year, hit hard by the COVID-19 pandemic. It added that
countries in Developing Asia will barely grow in 2020. However, it also
said China is expected to record a positive growth of 1.8% in 2020, sharply
down from 6.1% in 2019. Finally, the BSE Sensex gained 523.68 points or 1.53%
to 34,731.73, while the CNX Nifty was up by 152.75 points or 1.51% to
10,244.40.
The US markets gave up early
gains and ended mostly lower on Friday. Markets made firm start on optimism
about economic recovery in the wake of recent strong data on employment and
retail sales. But, reports showing a surge in coronavirus infections in several
states in America and the World Health Organization's warning that the pandemic
is accelerating and the world is in a new and dangerous phase unsettled the
markets. The Trump administration has declared there will not be another
shutdown, but Apple Inc. (AAPL) announced that it is temporarily shuttering
stores again in US states where the novel coronavirus cases have been spiking in
recent weeks. Texas and Arizona reported record spikes in new cases on Friday.
Florida, California, South Carolina and North Carolina were among the other
states to report a jump in new cases of virus infections. The market also
reacted to Boston Federal Reserve President Eric Rosengren's remarks that the
US economy may not see a fast recovery and that it would need more support from
the Fed and Congress. He made these comments in a webcast to the Providence
Chamber of Commerce. Rosengren said Unemployment remains very high, and because
of the continued community spread of the disease and the acceleration of new
cases in many states, I expect the economic rebound in the second half of the
year to be less than was hoped for at the outset of the pandemic. On the
economic data front, the US current-account deficit, a measure of the nation's
debt to other countries, slipped 0.1% in the first quarter. The current-account
deficit fell to $104.2 billion from a revised $104.3 billion in the 2019 fourth
quarter. The small decline reflected a lower trade deficit in goods.
Crude oil futures settled higher
for second straight session on Friday as Organization of the Petroleum
Exporting Countries (OPEC) members and allies tightened the reins on output
cuts and some signs of improvement in the global economy brightened the outlook
for energy demand. OPEC and non-OPEC oil-producing nations promised full
conformity with oil output cuts from July through September to balance the
global oil market. the 23-member group said Attainment of 100 percent
conformity from all participating countries is not only fair and equitable, but
vital for the ongoing and timely rebalancing efforts and helping deliver a
sustainable oil market stability. Meanwhile, a report from Baker Hughes said oil
rig count in the US dropped by 13 to 266 this week, falling for a seventh
successive week and hitting a record low as well. Crude oil futures for July
jumped 91 cents or 2.3 percent to settle at $39.75 a barrel on the New York
Mercantile Exchange. August Brent crude rose 68 cent or 1.6 percent to settle
at $42.19 a barrel on London's Intercontinental Exchange.
Indian rupee ended weaker against
dollar on Friday, on emergence of demand for the greenback from importers.
Investors' sentiment remained fragile as the Asian Development Bank (ADB) in a
supplement to its Asian Development Outlook (ADO) has forecasted that the
Indian economy is expected to contract by 4% during the current financial year,
hit hard by the COVID-19 pandemic. However, downside remained capped as gains
in domestic equity markets provided some support to the rupee. On the global
front, Sterling rose slightly on Friday after hitting almost three-week lows as
retail sales rebounded in May more strongly than hoped with the country gradually
relaxing its coronavirus lockdown. Finally, the rupee ended at 76.20, 6 paise
weaker from its previous close of 76.14 on Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 5105.72 crore against gross
selling of Rs 4549.11 crore, while in the debt segment, the gross purchase was
of Rs 1082.39 crore with gross sales of Rs 1765.27 crore. Besides, in the
hybrid segment, the gross buying was of Rs 3.61 crore against gross selling of
Rs 0.64 crore.
The US markets closed mostly
lower on Friday, after the World Health Organization signaled that the
coronavirus pandemic remains a deadly threat. Asian markets are trading mixed
on Monday as rising coronavirus cases in the United States raised more doubts
about a quick economic rebound from the massive downturn triggered by the
pandemic. Indian markets settled higher on Friday with notable gains amid
positive global cues and hopes of a V-shaped recovery in earnings growth in the
second half of fiscal year 2020-21. Today, the markets are likely to make
flat-to-negative start of new week amid mixed cues from Asian peers. There will
be some cautiousness with Worldometer report that India went past the 4
lakh-mark on June 21 with the biggest single-day spike of 15,915 new
infections, while the death toll rose to 13,294. However, some respite may come
later in the day with Chief Economic Advisor Krishnamurthy V Subramanian's
statement that demand in the economy will increase when the uncertainty
regarding health in the wake of COVID-19 outbreak ends. Some support may also
come with the Reserve Bank of India's (RBI) data showing that India's forex
reserves rose substantially by $5.942 billion to touch a life-time high of
$507.644 billion in the week to June 12, helped by a significant jump in the
foreign currency assets (FCA). Traders may react to the report that foreign
portfolio investors (FPI) have infused a net Rs 17,985 crore into the Indian
capital markets in June so far amid increasing liquidity and higher risk
appetite. Meanwhile, Prime Minister Narendra Modi met with the ministers and
top officials from infrastructure and commerce ministries, to discuss ways to
boost local manufacturing and exports amid continuing tensions with China.
There will be some buzz in the banking stocks with the latest data from the RBI
showing that bank credit and deposits grew 6.24 per cent and 11.28 per cent to
Rs 102.54 lakh crore and Rs 139.55 lakh crore, respectively, in the fortnight
ended June 5. Aviation stocks will be in focus as Civil Aviation Minister
Hardeep Singh Puri expects the domestic market to return to full capacity by
the end of the year, but sees little chance of international travel reopening
anytime soon with border restrictions in place. There will be some reaction in
power stocks with report that intense heat wave during the third week of June
has helped further narrowing of power demand slump to 9.76% from 10.5% in the
previous week, showing commercial and industrial activities are yet to reach
optimum levels.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,244.40
|
10,120.57
|
10,320.32
|
BSE Sensex
|
34,731.73
|
34,295.96
|
35,007.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
1,354.64
|
102.50
|
97.43
|
105.73
|
State Bank of India
|
768.98
|
184.50
|
181.02
|
186.47
|
Axis Bank
|
520.86
|
417.05
|
408.93
|
423.73
|
ICICI Bank
|
513.68
|
363.80
|
353.52
|
369.77
|
Reliance Industries
|
488.29
|
1,759.40
|
1,684.67
|
1,811.47
|
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Dr. Reddy's Laboratories has launched Abiraterone Acetate Tablets USP, 250 mg, a therapeutic equivalent generic version of Zytiga.