It turned out to be a dismal
performance from the benchmark indices on Tuesday, as they failed to snap the
session in the positive territory and settled marginally below the neutral
lines. The frontline indices took a breather, a session after showcasing a
scintillating performance, as market participants turned cautious after North
Korea test-launched an intermediate-range ballistic missile days before leaders
from the Group of 20 nations are due to discuss steps to rein in Pyongyang's
weapons programmes. On the domestic front, fear of uncertainty over the
implementation of the Goods and Services Tax (GST) has cast its shadow on
manufacturing activities as growth in the sector fell to a four-month low in
June, showed the widely-tracked Nikkei purchasing managers' index (PMI). The
PMI dropped to 50.9 in June from 51.6 the previous month, as a softer rise in
new orders resulted in weaker growth in production. However, losses in the
benchmark indices were capped with the Railway Minister Suresh Prabhu's
statement that the India's GDP growth to the tune of 8-9% was expected and the
new tax rates would contribute significantly towards this. He also said the GST
aims at increasing the number of taxpayers and, as the tax revenue rises, the
GDP will also increase. Some support also came with the report that the
Financial Stability Board (FSB), an international body for global financial
system, placed India in the league of countries that are ‘compliant or largely
compliant' on implementation of priority area reforms. Finally, the BSE Sensex
declined 11.83 points or 0.04% to 31209.79, while the CNX Nifty was down by
1.70 points or 0.02% to 9,613.30.
The US markets remained closed on
Tuesday on account of 'Independence Day' holiday.
Crude oil futures managed to
reverse the early losses in a holiday thinned trade, due to the U.S. Independence
Day' holiday. Oil had settled higher for eight sessions in a row as part of an
extended recovery from multi-month lows. A supply glut has been eroding the
impact of output cuts by major producers, though a latest weekly Baker Hughes
data showed a fall in the US oil rig count for the first time since the start
of the year. Benchmark crude oil futures for August delivery gained $0.10 or
0.21 percent to $47.17 on the New York Mercantile Exchange. In London, Brent
crude for August delivery ended up 0.08 cents at $49.76 a barrel on the ICE.
Indian
rupee appreciated against US dollar on Tuesday, as fresh sale of the US
currency by exporters paced up. Local currency got some support with the
Railway Minister Suresh Prabhu's statement that the India's GDP growth to the
tune of 8-9% was expected and the new tax rates would contribute significantly
towards this. He also said the Goods and Services Tax (GST) aims at increasing
the number of taxpayers and, as the tax revenue rises, the GDP will also
increase. Moreover, the local unit was in a sweet spot also because of a weak
dollar overseas. On the global front, US dollar pared its loss against yen on
Tuesday, with the greenback having been pushed lower as news of North Korea's
missile testing prompted haven bids for Japan's currency. Finally, the rupee
ended at 64.73, 14 paise stronger from its previous close of 64.87 on Monday.
The
FIIs as per Tuesday's data were net sellers in equity and debt segments both. In
equity segment, the gross buying was of Rs 3532.61 crore against gross selling
of Rs 4428.71 crore, while in the debt segment, the gross purchase was of Rs
242.78 crore with gross sales of Rs 1721.61 crore.
The US markets remained closed in
last session unable to give any cues to the other markets, while the Asian
markets have made mostly a soft start on looming geopolitical concern over
North Korea's nuclear weapons program after US confirmed North Korea's claim
that it had launched an intercontinental ballistic missile. Japanese shares
were weighed down by the strengthening yen. The Indian markets after much of
dilly-dallying ended flat with a negative bias in the last session. Today, the
start is likely to be flat-to-soft tailing the weakness in regional markets on
geopolitical worries. North Korea said that it successfully test-launched a
first intercontinental ballistic missile, (ICBM), which many experts said could
put all of the US state of Alaska within range for the first time. Traders may
also be cautious with a Fitch Ratings' report stating that the
newly-implemented goods and services tax (GST) will support productivity and
boost the long-term growth prospects but is unlikely to increase tax revenue in
the short-term. Meanwhile, Revenue Secretary Hasmukh Adhia has said that about
two lakh new registrations on GST have been done since it reopened last week.
Of these, 39,000 have already been approved. Logistics stocks will see some
upmove, as the Union Road Transport and Shipping Minister Nitin Gadkari has
said that logistic sector will gain most with GST, as on the
back-of-the-envelope calculations logistics costs would come down by at least
20 per cent. Gems and jewellary stocks too will see some action on report that
India's gems and jewellery exports rose over 11 per cent to $6.78 billion
during the first two months of the current fiscal, largely driven by demand in
major markets like the US.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9613.30
|
9588.98
|
9644.13
|
BSE Sensex
|
31209.79
|
31132.95
|
31320.04
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Hindalco
|
159.43
|
198.40
|
196.98
|
199.98
|
Vedanta
|
119.71
|
255.25
|
252.48
|
258.73
|
ITC
|
112.32
|
337.25
|
334.52
|
341.72
|
ICICI Bank
|
83.36
|
289.50
|
287.80
|
292.00
|
SBI
|
78.56
|
273.00
|
271.22
|
275.62
|
Sun Pharmaceutical Industries has entered into a strategic long-term manufacturing agreement with Samsung BioLogics for Tildrakizumab.
Bajaj Auto is all set to start producing Husqvarna range of motorcycles from its Chakan plant near Pune by the end of next year.
ONGC's overseas arm - ONGC Videsh has signed definitive binding agreements with Tullow Namibia, a wholly owned subsidiary of Tullow Oil plc, to acquire 30 per cent participating interest in three blocks.
Mahindra and Mahindra's South Korean subsidiary SsangYong Motor, has sold a total of 12,697 units in June 2017 - 10,535 units in domestic sales and 2,162 in exports.