Indian equity benchmarks settled
on a positive note with gains of over half percent on Friday after a largely
volatile trade session, boosted by rupee's gain against the US dollar as well
as positive leads from Asian markets. Key indices took gaining streak to third
straight session, recapturing their crucial 10,600 (Nifty) and 36,000 (Sensex)
bastions. Markets made positive start, as traders took encouragement with union
finance and revenue secretary Ajay Bhushan Pandey's statement that that the GST
information technology (IT) system is quite robust as more than 46 crore tax
returns have been filed through the system in last three years, which has
helped in making the historical indirect tax reform a success. Some support
also came as Prime Minister Narendra Modi and Russian President Vladimir Putin
discussed the coronavirus crisis and resolved to strengthen the Indo-Russia
ties for jointly addressing the challenges of the post-Covid world. Barometer
gauges extended their gains in late morning deals, as traders remained
enthusiastic with the World Bank's statement that it will provide a $750
million budget support to 15 lakh MSMEs to increase liquidity access for viable
small businesses impacted by COVID-19. The $750 million support is in addition
to the $2 billion funding the World Bank has already announced for the social
and health sector. Sentiments remained positive with reports that India's first
indigenous Covid-19 vaccine (BBV152 COVID vaccine) may be launched by August
15. The Indian Council of Medical Research (ICMR) has written to select medical
institutions and hospitals to fast-track clinical trial approvals for the
vaccine. However, markets pared some gains in late trade as a private sector
survey showed India's crippled services industry, the lifeblood of economic
growth and jobs, contracted sharply in June as an extended lockdown imposed to
stop the spread of the coronavirus stalled business activity. Although the pace
of decline moderated from May - the Nikkei/IHS Markit Services Purchasing
Managers' Index jumped to 33.7 in June from May's 12.6 - it remained a long way
from the 50-mark separating growth from contraction. Finally, the BSE Sensex
gained 177.72 points or 0.50% to 36,021.42, while the CNX Nifty was up by 55.65
points or 0.53% to 10,607.35.
The US markets remained closed on
Friday, for the observance of the Independence Day holiday.
Rising for the second straight
day, Indian rupee ended stronger against dollar on Friday due to fresh selling
of the American currency by banks and exporters. The domestic currency was trading
strong from the start, on expectation of positive outcome over India and China
tension. Positive equity markets and progress in covid-19 vaccine also
supported Rupee. Traders' mood remained positive as World Bank Country Director
in India Junaid Ahmad has said that the World Bank will provide a $750 million
budget support to 15 lakh Micro, Small and Medium Enterprises (MSMEs) to
increase liquidity access for viable small businesses impacted by nationwide
lockdown due to Covid-19 outbreak. On the global front, dollar edged up on
Friday and currency traders' risk appetite was boosted only slightly by
better-than-expected jobs data in the United States, as surging coronavirus
cases continued to taper market optimism. Finally, the rupee ended at 74.66, 38
paise stronger from its previous close of 75.04 on Thursday.
The FIIs as per Friday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 4015.82 crore against gross selling of Rs 4347.07 crore, while
in the debt segment, the gross purchase was of Rs 919.12 crore with gross sales
of Rs 1041.97 crore. Besides, in the hybrid segment, the gross buying was of Rs
13.68 crore against gross selling of Rs 24.97 crore.
The US markets were shut on
Friday for Independent Day. Asian markets are trading in green on Monday as
investors counted on super-cheap liquidity and fiscal stimulus to sustain the
global economic recovery. Indian markets pared some early gains but still ended
higher on Friday, making it the third straight week to end with gains. Today,
the start of new week is likely to be positive tracking firm cues from Asian
peers. Traders will be getting some encouragement with report that in the
fourth years of the goods and service tax (GST) regime, the government is
determined to focus on the simplification of tax administration and ease of
compliance for taxpayers. Some support will come with the latest data from the Reserve
Bank of India (RBI) showing that after falling in the previous week, the
country's foreign exchange reserves rose $1.27 billion to $506.84 billion in
the week ended June 26. Investors will react to a report that farm activity has
seen an uptick in June, aided by heavy rainfall, with 87% more area coming
under cultivation of various key crops so far in the season compared to last
year. Traders may take note that industry body Assocham has identified 15 large
import items for ramping up the country's domestic capacity to achieve the
objective of Aatmanirbhar Bharat or self-reliant India in 2-3 years. Meanwhile,
the commerce ministry is considering to replace the multi-modal transportation
of goods act with a full-fledged national logistics law with a view to promote
growth of the sector. However, there may be some cautiousness with over 23,000
new cases, India has now replaced Russia as the country with third-most
Covid-19 infections. The total number of coronavirus cases in India stands at
697,836 and 19,700 people have died from the disease so far. Three will be some
buzz in fertiliser stocks with the government's statement that fertiliser sales
jumped 83% in April-June to record 111.61 lakh tonnes despite the nationwide
lockdown to curb the spread of coronavirus. Banking stocks will be ion focus as
the finance ministry may assess the capital requirement of public sector banks
after the September quarter as there would be greater clarity about a spike in
bad loans by that time. There will be some reaction in the aviation stocks with
ICRA's report that the recommencement of commercial passenger flight services
in a graded manner is unlikely to help the domestic aviation industry recover
in the current financial year with domestic air traffic expected to shrink by
41-46% and international travel demand by a negative 67-72% Y-o-Y owing to
COVID-19.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,607.35
|
10,569.57
|
10,638.22
|
BSE Sensex
|
36,021.42
|
35,892.46
|
36,130.29
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
873.13
|
103.45
|
101.58
|
105.83
|
State Bank of India
|
380.51
|
184.70
|
183.12
|
186.57
|
ITC
|
378.96
|
207.55
|
206.20
|
208.70
|
Axis Bank
|
310.44
|
428.45
|
424.20
|
432.15
|
ICICI Bank
|
287.79
|
361.00
|
358.15
|
365.50
|
Kotak Mahindra Bank and Innoviti Payment Solutions have collaborated to offer convenient EMI billing options on Kotak Debit Cards swiped on Innoviti POS terminals.
Housing Development Finance Corporation is planning to raise Rs 1.25 lakh crore in a year by issuing debt securities through various modes.
Intel Capital is planning to invest Rs 1,894.50 crore in Jio Platforms, a wholly-owned subsidiary of Reliance Industries, at an equity value of Rs 4.91 lakh crore.
HDFC Bank is extending its digital auto loans product, which delivers credit in less than 10 seconds, to 1,000 cities across the country.