Key Indian equity indices
finished Tuesday's trading session in red terrain, with Sensex and Nifty
falling 0.13% each. After a cautious start, markets managed to trade in green
terrain for the most part of the session, amid reports that the government has set
a target of adding 1.3 crore income tax filers in the current financial year
against 1.1 crore new filers last year. Some relief also came after the
Ministry of New and Renewable Energy (MNRE) issued guidelines for rollout of
the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM-KUSUM)
Scheme, with a central aid of Rs 34,422 crore to provide financial and water
security to farmers through harnessing solar energy capacities of 25.75
gigawatt (GW) by 2022. But, key indices slipped in red terrain in the last leg
of trade to close the lackluster day on negative note. Domestic sentiments got
hit, after outgoing Reserve Bank of India Deputy Governor Viral Acharya said
that an increase in government borrowing runs the risk of flooding the debt market,
and puts upward pressure on interest rates, making it more expensive for
companies to borrow. The market participants got anxious, as the share of
foreign portfolio investments (FPI) in domestic capital markets through
participatory notes (P-notes) slipped to Rs 81,913 crore at June-end. Finally,
the BSE Sensex lost 48.39 points or 0.13% to 37,982.74, while the CNX Nifty was
down by 15.15 points or 0.13% to 11,331.05.
The US markets ended higher with
gains of over half a percent on Tuesday on the heels of reports indicating US
officials will soon travel to China for face-to-face trade talks. US Trade
Representative Robert Lighthizer and a small team of senior US officials will
travel to China. A private report said US officials will travel to China for
discussions sometime between Friday and Thursday, August 1. Lighthizer and
Treasury Secretary Steven Mnuchin have spoken with their Chinese counterparts
by phone, although this would be the first face-to-face meeting since talks
broke down in May. Besides, a positive reaction to the latest earnings reports
contributed to strength on markets, with shares of Coca-Coca surging up by
6.1%. The jump by Coca-Cola came after the beverage giant reported second
quarter results that beat street estimates and raised its full-year revenue
forecast. On the economic front, after reporting a notable increase in US
existing home sales in the previous month, the National Association of Realtors
(NAR) released a report showing existing home sales pulled back by much more
than anticipated in the month of June. NAR said existing home sales tumbled by
1.7% to annual rate of 5.27 million in June after soaring by 2.9% to an
upwardly revised rate of 5.36 million in May. Street had expected existing home
sales to edge down by 0.2% to a rate of 5.33 million from the 5.34 million
originally reported for the previous month. The report said the median existing
home price for all housing types reached an all-time high of $285,700 in June,
up 4.3% from $273,800 in the same month a year ago. Dow Jones Industrial
Average surged 177.29 points or 0.65 percent to 27349.19, Nasdaq gained 47.27
points or 0.58 percent to 8251.40 and S&P 500 was up by 20.44 points or
0.68 percent to 3005.47.
Crude oil futures ended higher on
Tuesday, a day ahead of data that is expected to reveal a sixth consecutive
weekly decline in US crude supplies. The Energy Information Administration
(EIA) is expected to reveal a fall of 4.4 million barrels in crude supplies for
the week ended July 19. Besides, the US and China will hold trade talks next
week also helped to ease worries about energy demand, after the International
Monetary Fund cut its global economic forecast-feeding the potential for a
slowdown in oil consumption. US trade negotiators will head to China next week
for in-person trade talks. Benchmark crude oil futures for September surged 55
cents or 1 percent to settle at $56.77 a barrel on the New York Mercantile
Exchange. September Brent rose 57 cents or 0.9 percent to settle at $63.83 a
barrel on London's Intercontinental Exchange.
Indian rupee ended marginally lower against US dollar on
Tuesday, due to fresh demand for the American currency from banks and
importers. Investors failed to get any solace with Department for Promotion of
Industry and Internal Trade (DPIIT) Secretary Ramesh Abhishek stating that
India is hopeful of further improving its ranking in an index of the world's
most innovative economies from the current 57th. Strengthening of the U.S.
Dollar against other currencies overseas and rising crude oil prices also kept
pressure on the Indian Rupee. On the global front, US dollar strengthened
against its major rivals as investors awaited major central banks' next
monetary moves. Finally, the rupee ended at 68.94, 2 paise weaker from its
previous close of 68.92 on Monday.
The
FIIs as per Tuesday's data were net sellers in both equity and debt segments.
In equity segment, the gross buying was of Rs 3381.66 crore against gross
selling of Rs 5310.89 crore, while in the debt segment, the gross purchase was
of Rs 1153.88 crore with gross sales of Rs 1683.29 crore. Besides, in the
hybrid segment, the gross buying was of Rs 2.18 crore against gross selling of
Rs 1.43 crore.
The US markets ended higher on
Tuesday amid reports that face-to-face talks between US and Chinese trade
negotiators would begin next week. A batch of stronger-than-expected earnings
also lifted investors' sentiment. Asian markets are trading mixed on Wednesday
amid hints of progress in the Sino-US trade saga. Indian markets continued
their southward journey for fourth straight session and ended marginal in red
on Tuesday amid heavy selling by foreign investors. Today, the markets are
likely to make a cautious start amid mixed cues from Asian peers. There will be
some cautiousness with report that the International Monetary Fund (IMF)
projected a slower growth rate for India in 2019 and 2020, a downward revision
of 0.3 per cent for both the years, saying its GDP will now grow respectively
at the rate of 7 and 7.2 per cent reflecting a weaker-than expected outlook for
domestic demand. Though, it also said India will still be the fastest growing
major economy of the world and much ahead of China. However, some support may
come with Minister of Shipping Mansukh Mandaviya's statement that the Centre
plans to bring down logistics cost down from 14 percent of the GDP to 9
percent. Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has
launched Utkarsh 2022, the central banks' medium-term strategy framework, in
line with evolving macro-economic environment. The framework has been launched
to achieve excellence in the performance of RBI's mandates and strengthening
the trust of citizens and other institutions. Besides, five state-run banks-
State Bank of India, Union Bank of India, Oriental Bank of Commerce,
Corporation Bank and Andhra Bank will offer in-principle approval up to Rs 5
crore to MSME borrowers through PSB Loans in 59 Minutes platform. There will be
some buzz in the sugar stocks with report that Cane dues to be paid by sugar
mills to farmers has come down to Rs 15,222 crore so far in marketing year
2018-19, that will end in September, because of government's intervention.
There will be some reaction in housing finance companies stocks amid CARE
Ratings' report that the National Housing Bank's (NHB) direction on interest
subvention products is likely to have an impact on the sales velocity of the
developers. It added that the loan book growth of the housing finance companies
(HFCs) is likely to be affected owing to this dip in sales. 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
|
11,331.05
|
11,289.85
|
11,385.20
|
BSE Sensex
|
37,982.74
|
37,848.49
|
38,167.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
1,649.64
|
90.65
|
87.20
|
94.00
|
Indian Oil Corporation
|
466.71
|
147.35
|
145.40
|
149.00
|
SBI
|
279.56
|
342.20
|
337.80
|
349.80
|
ITC
|
143.97
|
270.65
|
266.53
|
273.23
|
ICICI Bank
|
142.07
|
411.95
|
409.13
|
415.38
|
HDFC Bank has signed a MoU with CSC eGovernance Services India and CAIT to offer a full range of banking products and services to all CAIT members.
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TCS has successfully completed a large-scale cloud migration project for Randstad, a global leader in the HR services industry.
Dr. Reddy's Laboratories has launched Ramelteon Tablets, 8 mg, a therapeutically equivalent generic version of Rozerem Tablets, approved by the USFDA.