Indian equity benchmarks ended
the choppy day of trade with marginal gains, where frontline gauges, despite
some hiccups, managed to keep their head above water, as traders opted for
bargain hunting after registering losses in the preceding two trading sessions.
Markets traded mostly in green through the session with traders taking support
with DIPP's report that FDI flow into the country grew 37% to $10.4 billion
during the first quarter of this financial year. India received $7.59 billion
FDI during April-June 2016-17. Some support also came with foreign brokerage
firm's report that India is expected to see a modest recovery in GDP growth at
6.6% for the April-June quarter as compared to 6.1% in January-March, which was
affected by demonetization. Meanwhile, Prime Minister Narendra Modi is slated
to interact with 200 CEOs to attain their views and suggestions to carry
forward the 'New India' initiative. The two-day discussion involves groups
consisting of around 35 industry leaders and government secretaries, who will
deliberate on an array of topics, namely- New India by 2022, Make in India,
Cities of Tomorrow, World Class Infrastructure, Doubling Farmers Income and
Fixing Finance: Reporting the Financial Sector. However, gains remained capped
as some cautiousness crept in on report that leading stock exchange BSE
announced on Monday that it will ‘compulsorily' delist 200 firms this week and
bar their promoters from the markets for 10 years as trading in these shares
have remained suspended for over a decade. All these companies will be delisted
from August 23. Traders also remained concerned with a private survey stating
that consumer confidence in India declined in the second quarter of this year amid
concerns regarding job security and lower optimism on employment prospects.
Finally, the BSE Sensex gained 33.00 points or 0.11% to 31,291.85, while the
CNX Nifty was up by 11.20 points or 0.11% to 9,765.55.
The US markets closed higher on
Tuesday, with the Dow industrials and the Nasdaq turning in their best session
in months, as a surge in appetite for technology shares and health-care stocks
underlined a measure of bullishness returning to markets after a rough patch.
Stocks gained momentum following a Politico report that President Donald
Trump's top aides and congressional leaders are making progress on shaping a
tax-reform plan. Traders were already focusing on the Kansas City Federal
Reserve Bank's central bank symposium in Jackson Hole, Wyo., which starts
Thursday and runs through Saturday. Federal Reserve Chairwoman Janet Yellen and
European Central Bank President Mario Draghi are among top speakers, with
investors hoping to get hints on the future monetary policy path from both
institutions. The minutes from a discussion of the discount rate showed that
all of the Federal Reserve's 12 regional banks wanted to hold steady the rate
commercial banks are charged for emergency loans ahead of the US central bank's
last policy meeting. The Dow Jones Industrial Average added 196.14 points or
0.90 percent to 21,899.89, the Nasdaq gained 84.35 points or 1.36 percent to
6,297.48, while the S&P 500 edged higher by 24.14 points or 0.99 percent to
2,452.51.
Crude oil futures moved higher on
Tuesday ahead of the inventory data with traders expecting the data to show US
supplies of crude oil fell for an eighth-straight week. Gasoline inventories are
expected to be closely watched, as gasoline demand tends to ease, following the
end of the U.S. 'summer driving season'. Meanwhile OPEC is meeting this week in
Vienna to discuss its supply quota plan. OPEC officials estimated the cartel
and other producing countries in July have delivered 94 percent of their
pledged oil output cuts. Benchmark crude oil futures for October delivery ended
up by $0.27 or 0.5 percent to $47.64 on the New York Mercantile Exchange. In
London, Brent crude for October delivery ended higher by $0.32 at $51.98 a
barrel on the ICE.
Indian
rupee ended marginally higher against the American currency on Tuesday on
continued dollar selling by banks and exporter. Though, trades were thin as
public sectors banks were on strike. Investors took some support with report
that Foreign Direct Investment (FDI) into the country grew by 37% to $10.4
billion during the first quarter of the current fiscal. According to DIPP,
India had received $7.59 billion FDI during April-June 2016-17. The domestic
unit also found some support from dollar weakened overseas along with gains in
the local equity markets. On the global front, dollar pushed higher against a
basket of the other major currencies on Tuesday as investors awaited the annual
gathering of central bankers in Jackson Hole later this week for clues on how
policymakers view the economy. Finally, the rupee ended at 64.10, 3 paise
stronger from its previous close of 64.13 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
4312.11 crore against gross selling of Rs 6101.47 crore, while in the debt
segment, the gross purchase was of Rs 1781.12 crore with gross sales of Rs
491.28 crore.
The US markets surged in the last
session, with tech-heavy Nasdaq rebounding strongly after ending the previous
session at its lowest closing level in well over a month, amid easing concerns
about recent political turmoil in Washington. The Asian markets have made
mostly a positive start, tracking overnight gains on Wall Street, as political
tensions took a back seat to optimism about U.S. tax reform and global central
bankers' commitment to loose monetary policy. The Indian markets after
dilly-dallying throughout the day, managed a modestly positive close in last
session, supported by some firmness in the global markets. Today, the start is
likely to be in positive terrain on supportive global cues. Traders will be
getting some support with a blog on Asian Development Bank's website, stating
that the goods and services tax in India will benefit the lower and lower-middle
income class as it is likely to reduce the tax rate on goods. It further stated
that in general, GST is likely to reduce the tax rate on goods as compared to
previously, while tax rates on services are expected to increase. Meanwhile,
the Financial Stability & Development Council (FSDC) has said that India
has macro-economic stability today on the back of improvement in its
macro-economic fundamentals and structural reforms with the launch of the Goods
and Services Tax (GST). The Council, comprising regulators, took note of the
overall stability that has been achieved on the back of improvements in
macro-economic fundamentals, structural reforms with the launch of the Goods
and Services Tax (GST), action being taken to address the twin balance sheet
challenge and financial market confidence. There will be some buzz in the
market with BSE compulsorily delisting 200 companies with effect from today and
bar promoters of these companies from accessing the securities market for 10
years. There will be some action in the telecom stocks, as the
Inter-Ministerial Group (IMG) on telecom industry has hinted on extending the
timeline for deferred spectrum payment by telcos to 16 years instead of 10 at
present.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9,765.55
|
9735.95
|
9811.80
|
BSE Sensex
|
31291.85
|
31194.14
|
31436.92
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Infosys
|
246.21
|
875.40
|
857.92
|
894.97
|
Bank of Baroda
|
176.98
|
139.35
|
137.12
|
142.67
|
Hindalco
|
122.01
|
228.90
|
225.92
|
231.77
|
ITC
|
119.57
|
282.90
|
280.50
|
285.15
|
SBI
|
118.14
|
273.90
|
271.07
|
276.87
|
Lupin has received notification that the inspection carried out by the USFDA in April 2017 at its Aurangabad facility is now closed and the agency has issued an EIR.
ONGC has received an in-principle approval to acquire the government's 51.11% stake in HPCL.
SBI has unveiled processing fee waiver of up to 100% on car loans, gold loans and personal loans for a limited period.
Axis Bank has tied-up with the worldwide cab hailing firm Uber for Unified Payments Interface-based payments.