Continuing their record closing
streak, Indian equity benchmarks ended the range-bound session with a gain of
around quarter a percent, with frontline gauges settling above their crucial
9,800 (Nifty) and 31,800 (Sensex) levels for the first time ever. Sentiments
remained upbeat for most part of the day's trade with statement of Revenue
Secretary Hasmukh Adhia that the Goods and Services Tax (GST) will help bring
down the inflation by one to two percent by the end of this year. He also said
that the government's objective is to ensure that inflation does not increase,
and added that the government has tried to keep items frequently used by the
consumers under the lower tax bracket. Traders also took some encouragement
with Finance minister Arun Jaitley's statement where he called for more credit
disbursement towards the unorganized sector, saying it will help push
employment growth. Jaitley said diverting resources of banks and financial
institutions through various schemes towards the unorganized sector will help
create more jobs in the country. However, gains remained capped, as traders
opted to stay away from taking positions in risky assets ahead of the IIP and
inflation data to be announced after the market hours today. Also, the street
is keeping an eye on corporate earnings for further direction including Tata
Consultancy Services scheduled on Thursday and Infosys on Friday. Some pressure
crept in during the trade after CRISIL said that the sharp appreciation in the
rupee against the dollar in recent months is likely to have dented the
first-quarter (current fiscal) profitability of exporters that source locally
and have limited pricing power. Finally, the BSE Sensex gained 57.73 points or
0.18% to 31,804.82, while the CNX Nifty was up by 30.05 points or 0.31% to
9,816.10.
The US markets closed higher on
Wednesday, with the Dow industrials setting its first closing record in nearly
a month, as Federal Reserve Chairwoman Janet Yellen emphasized the central
bank's gradual approach to normalizing monetary policy and expressed optimism
about the economy in congressional testimony. According to the central bank's
latest deep dive on the economy, a shortage of qualified workers in the US has
limited hiring, but there's little evidence firms are raising wages to attract
jobseekers. The so-called Beige Book, the Fed's regular survey of business
conditions around the country, said economic growth was slight to moderate from
late May through June. On the economy front, Mortgage Bankers Association data
released showed that US mortgage application activity recorded its steepest
drop since December as interest rates on 30-year fixed-rate home loans climbed
to their highest level in nearly two months. The Washington-based group said
its seasonally adjusted index for mortgage applications fell to 391.9 in the
week ended July 7, down 7.4 percent from the prior week which marked its
biggest decline since a 12.1 percent fall in the December 23 week. The Dow
Jones Industrial Average added 123.07 points or 0.57 percent to 21,532.14, the
Nasdaq added 67.86 points or 1.10 percent to 6,261.17, while S&P 500 edged
higher by 17.72 points or 0.73 percent to 2,443.25.
Crude oil futures strengthened
further on Wednesday, supported by data showing that supplies of U.S. crude
fell by more than expected. The U.S. Energy Information Administration (EIA) reported
that domestic crude supplies dropped 7.6 million barrels for the week ended
July 7, confounding expectations of draw of about only 2.9m barrels. Gasoline
inventories unexpectedly fell by roughly 1.65m barrels, while distillate
stockpiles rose by 3.13m barrels. But total U.S. crude production edged up by
59,000 barrels a day to 9.397 million barrels a day last week, according to the
EIA figures. Benchmark crude oil futures for August delivery added $0.45 or 1percent
to $45.49 on the New York Mercantile Exchange. In London, Brent crude for
August delivery ended up by 0.44 percent at $47.73 a barrel on the ICE.
Indian
rupee appreciated against US dollar on Wednesday, ahead of key economic data
i.e. May IIP and June CPI data, scheduled to be released later in the day.
Traders took some support with statement of Revenue Secretary Hasmukh Adhia
that the Goods and Services Tax (GST) will help bring down the inflation by one
to two percent by the end of this year. He also said that the government's
objective is to ensure that inflation does not increase, and added that the
government has tried to keep items frequently used by the consumers under the
lower tax bracket. Moreover, positive gains in domestic equities along with
dollar's weakness against other currencies overseas buoyed the rupee sentiment.
On the global front, US dollar fell against yen and languished at 14-month lows
against euro on Wednesday ahead of Federal Reserve Chair Janet Yellen's
appearance in Congress to give testimony on monetary policy. Finally, the rupee
ended at 64.53, 5 paise stronger from its previous close of 64.58 on Tuesday.
The
FIIs as per Wednesday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 5676.71 crore against gross selling
of Rs 5516.09 crore, while in the debt segment, the gross purchase was of Rs
8907.26 crore with gross sales of Rs 1054.28 crore.
The US markets bounced back and
posted good gains in the last session with Dow reaching a record closing high
in reaction to Federal Reserve Chair Janet Yellen's remarks before the House
Financial Services Committee. Yellen noted that there remains uncertainty about
the outlook for inflation and said the Fed will be monitoring inflation
developments closely in the months ahead. The Asian markets have made mostly a
positive start and some of the indices are up by over half a percent in early
deals after Janet Yellen signaled the Federal Reserve won't rush to tighten
monetary policy. The Indian markets after a choppy day of trade ended with
modest gains in the last session, caution ahead of key macro data as well as
Fed Chair Janet Yellen's testimony kept the gains under check. Today, the start
is likely to be in green on positive global cues and on hopes of rate cut by
Reserve Bank of India after the industrial output growth dropped to 1.7 percent
in May from 8 percent in the same month last year. On the other hand, retail
inflation hit new low of 1.54 percent in June, down from 2.18 per cent in May.
Tepid data of industrial output coupled with record low inflation figures have
rekindled hopes of a rate cut when the RBI reviews its monetary policy on
August 2. Though, there will be some cautiousness too, with Chief Economic
Adviser Arvind Subramanian's statement that the historically low level of
retail inflation at 1.54 percent in June reflects the firm and ongoing
consolidation of macro-economic stability and that all policy makers look at
data "very, very carefully". There will
be some support to the markets with ratings agency Fitch report that the global
sovereign credit cycle is likely to turn less negative in 2017 as the global
GDP growth forecast for 2017 and 2018 had improved. The whole IT sector stocks
will be buzzing today, with TCS, the largest domestic IT firm by sales slated
to announce its first quarter numbers.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9816.10
|
9794.22
|
9831.47
|
BSE Sensex
|
31804.82
|
31735.60
|
31869.86
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ONGC
|
129.66
|
162.85
|
160.63
|
165.48
|
ITC
|
102.49
|
328.85
|
326.30
|
332.50
|
Bank of Baroda
|
86.55
|
163.50
|
161.43
|
164.78
|
Hindalco
|
83.30
|
200.60
|
198.97
|
202.32
|
ICICI Bank
|
80.91
|
292.35
|
289.10
|
295.10
|
Yes Bank is aiming to serve 2.5 lakh retail borrowers through digital interventions in FY18 which should reduce processing times.
Axis Bank has entered into collaboration with Inter- American Investment Corporation, which will help traders boost relations between India and Latin America and the Caribbean.
Tata Motors has launched three new products in the SCV Range with the XL portfolio - Ace Mega XL, Ace Zip XL and Ace XL.
Reliance Industries has received environment clearance for expansion of its petrochemical complex in Gujarat, entailing an investment of Rs 2,100 crore.