Extending jubilation for third
straight day, Indian equity benchmarks ended the Tuesday's trade with a gains
of over around a percent, recapturing their crucial 36,200 (Sensex) and 10,900
(Nifty) levels, amid firm global cues. After a positive start, there appeared
not even an iota of profit booking in the session with benchmarks fervently
gaining from strength to strength to end near intraday highs, as investors
continued hunt for fundamentally strong stocks. Sentiments remained up-beat
throughout the session with rating agency Crisil's latest report stating that
India Inc will deliver the highest quarterly revenue growth in three years at
12.8% in the April-June period, but high oil prices will narrow profit margins
by 0.20%. Traders also took some encouragement with NITI Aayog vice-chairman
Rajiv Kumar making a case for promoting Zero Budget Natural Farming (ZBNF) in
states, saying it would help in doubling farmers' income by 2022. Some support
also came with the Reserve Bank of India (RBI) in its latest report revealing
that private corporate business sector records robust sales growth in fourth
quarter of 2017-18, with the companies posting sales of Rs 9.25 trillion as
compared Rs 8.41 trillion in the last quarter of 2016-17. A performance
analysis report is based on the abridged financial results of 2,723 listed
non-government non-financial (NGNF) companies for the Q4 FY18. Markets extended
gains in last leg of trade with a private report stating that India and South
Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade
by updating their existing free-trade agreement, called the comprehensive
economic partnership agreement (CEPA). Investors also took support from BSE
Managing Director and CEO Ashishkumar Chauhan's statement that there was no
need to panic over risk management firm Kroll's observations about Indian
economy as the country was a thought leader in corporate governance worldwide.
The street paid no heed towards a private report stating that Indian inflation
likely rose to a near two-year high in June, driven by surging oil and food
prices, a development that would strengthen calls for more monetary policy
tightening by the RBI. Finally, the BSE Sensex surged 304.90 points or 0.85% to
36,239.62, while the CNX Nifty was up by 94.35 points or 0.87% to 10,947.25.
Magnifying their gains fourth
straight day, the US markets ended higher on Tuesday, as optimism about the
upcoming earnings season has overshadowed recent trade concerns. Snack food and
beverage giant PepsiCo (PEP) released its second quarter results, reporting
earnings that exceeded street estimates. Financial giants Citigroup (C),
JPMorgan Chase (JPM) and Wells Fargo (WFC) are due to report their quarterly
results before the start of trading on Friday. Earnings are expected to show growth
of more than 20% year-over-year for the second quarter. Recent economic reports
have been seen as underlining the strength of the U.S. economy at a time when
many investors are concerned about worsening relations between Washington and
its major trading partners. Meanwhile, investors are bracing for a round of
quarterly earnings reports that are expected to underscore American
corporations' health. On the economic front, a June report on U.S.
small-business confidence showed sentiment has slipped, but it's still high by
historical standards. A May reading on U.S. job openings showed that openings
fell to 6.64 million from a record 6.84 million the previous month. The Dow
Jones Industrial Average surged 143.07 points or 0.58 percent to 24919.66, the
S&P 500 rose 9.67 points or 0.35 percent to 2793.84 and the Nasdaq was up
by 3 points or 0.04 percent to 7759.20.
Extending
previous session's gain, Crude oil futures ended higher on Tuesday with the
global benchmark briefly tapping a session high near the $80-a-barrel
threshold, as strikes by workers in Norway and Gabon added to global production
outages. Contributing to supply concerns was a strike by oil workers in Norway
that forced the shut in of 23,000 barrels a day of crude. A strike in Gabon is
expected to take 54,000 barrels a day of production offline. Supply risk
continues to be a major driver of both short and long-term price movements as
the market assesses the degree to which renewed U.S. sanctions against Iran
will halt Iranian oil exports. Benchmark crude oil futures for August gained 26
cents or 0.4 percent to settle at $74.11 a barrel on the New York Mercantile
Exchange. September Brent crude rose 79 cents or 1 percent at $78.86 a barrel
on London's Intercontinental Exchange.
Snapping
its two-day appreciating string, Indian rupee ended weaker against dollar on
Tuesday, due to demand for greenback by banks and importers. Sentiments turned
pessimistic with report that the US-China trade war will impact foreign
investment into the country, and the Reserve Bank of India (RBI) will have to
sell foreign currencies to defend the rupee at the 69 level to a dollar. Some
concern also came with a private report stating that Indian inflation likely
rose to a near two-year high in June, driven by surging oil and food prices a
development that would strengthen calls for more monetary policy tightening by
the Reserve Bank of India. Moreover, dollar's strength against a basket of some
currencies overseas too weighed on the rupee, though, rally in domestic
equities limited further depreciation of Indian currency. On the global front,
pound tumbled amid political jitters as the resignations of Foreign Secretary
Boris Johnson and Brexit Secretary David Davis raised questions over Theresa
May's future as Prime Minister. Finally, the rupee ended at 68.82, 10 paise
weaker from its previous close of 68.72 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 4489.23 crore against gross selling of Rs 5231.01 crore, while
in the debt segment, the gross purchase was of Rs 282.73 crore with gross sales
of Rs 529.79 crore. Besides, in the hybrid segment, the gross buying was of Rs
1.72 crore against gross selling of Rs 1.50 crore.
The US markets ended higher for
fourth straight session on Tuesday as Wall Street shifted from consternation
over global trade disputes to enthusiasm over coming second-quarter earnings
results following a string of strong economic data that has refreshed investor
optimism. Asian markets were trading in red on Wednesday, following the release
of a list of an additional $200 billion in Chinese goods on which the US is
considering imposing tariffs. Indian equity markets ended higher on Tuesday, as
investors shifted their focus to upcoming corporate earnings and put global
trade concerns aside. Today, the markets are likely to make cautious start,
following mixed global cues. Traders will remain concern about a private report
that Indian inflation likely rose to a near two-year high in June, driven by
surging oil and food prices, a development that would strengthen calls for more
monetary policy tightening by the Reserve Bank of India. There will be some
cautiousness with India's G-20 Sherpa Shaktikanta Das, expressing concern over
increasing protectionism and trade conflicts across the world, said that
countries ought to work out arrangements that are beneficial to all in the
larger interest of reviving global growth. However, traders may get some
support later in the day with report that India and South Korea signed 11
agreements to expand business ties and more than double mutual trade to $50
billion by 2030. Meanwhile, India has imposed anti-dumping duty of up to $528
per tonne for 5 years on a Chinese polyester yarn used in automobile and other
industries. Besides, the Global Innovation Index (GII) has ranked India as the
57th most innovative nation in the world. The country has improved its ranking from
60th position last year. India has been improving steadily since it was ranked
81st in 2015. There will be some reaction in IT sector stocks, after Tata
Consultancy Services (TCS), India's biggest software services exporter, posted
a better-than-expected 23% jump in first-quarter net profit to Rs 7,340 crore,
buoyed by robust growth at the banking, financial services and insurance (BFSI)
and digital verticals. 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
|
10,947.25
|
10,896.97
|
10,977.22
|
BSE Sensex
|
36,239.62
|
36,081.39
|
36,336.09
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
204.04
|
371.40
|
363.23
|
376.33
|
ICICI Bank
|
144.51
|
273.40
|
271.55
|
275.60
|
Hindalco
Industries
|
115.51
|
229.05
|
225.38
|
231.38
|
SBI
|
114.87
|
263.75
|
262.18
|
265.53
|
ITC
|
114.86
|
277.05
|
274.27
|
278.67
|
HCL Technologies has received an approval from the commerce ministry to set up a new IT SEZ in Vijayawada, Andhra Pradesh.
Tata Motors Group global wholesales in June 2018, including Jaguar Land Rover, stood at 100,135 units, higher by 12%, over June 2017.
IndusInd Bank has reported 23.81% rise in its net profit at Rs 1,035.72 crore for the quarter ended June 30, 2018 as compared to Rs 836.55 crore in Q1FY18.
SBI is planning to raise dollar funds through its maiden issuance of green bonds in the international market.