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NSE Intra-day chart (28 July 2020)
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Market Commentary 29 July 2020
Benchmarks likely to open marginally in green


Indian equity benchmarks have showcased a strong performance on Tuesday, by gaining more than a percent each in the session and settling above the psychological 11,300 (Nifty) and 38,450 (Sensex) levels, amid buying across sectors, as equities across Asia rose on hopes that another flood of US stimulus would cushion the global impact of renewed coronavirus outbreaks. Markets made an optimistic start and traded in fine fettle, as RBI Governor Shaktikanta Das made a strong case for stepping up investments in the infrastructure sector to restart the economy reeling under the impact of the COVID-19 pandemic. Some support also came in with Commerce and Industry Minister Piyush Goyal's statement that the government will soon set up a single window system for clearances and approvals for industry, and is working on creating a land bank with a view to attract investments. Key gauges extended their upside in second half of the session, taking support from the Finance Ministry's statement that the Centre has released over Rs 1.65 lakh crore as GST compensation to states for 2019-20 financial year, including Rs 13,806 crore for March. Traders remained optimistic with private report that the digitalisation of small and medium businesses (SMBs) could add up to $216 billion to India's GDP by 2024 and contribute to the country's economic recovery after COVID-19. Market participants paid no heed to 15th Finance Commission Chairman N K Singh's statement that India will see a sharp V-shaped recovery in the third and fourth quarter of the current fiscal, but FY21 GDP growth would ultimately be in negative territory as the coronavirus lockdown led to serious demand and supply dislocations. Finally, the BSE Sensex gained 558.22 points or 1.47% to 38,492.95, while the CNX Nifty was up by 168.75 points or 1.52% to 11,300.55.


The US markets settled lower on Tuesday as investors monitored talks between Republicans and Democrats on a second coronavirus aid package and tuned in to a deluge of second-quarter corporate results. The GOP bill includes popular provisions like another $1,200 stimulus payment to American as well as more funding for the Paycheck Protection Program. However, the legislation also slashes unemployment benefits and provides liability protections for businesses and doctors, which could lead to an impasse in negotiations with Democrats. Senate Majority Leader Mitch McConnell said he will not bring up a bill in the Senate that does not include liability protections. A negative reaction to earnings news from Dow components 3M and McDonald's also contributed to the weakness on markets. Shares of 3M tumbled by 4.8 percent after the diversified manufacturer reported second quarter results that missed street estimates on both the top and bottom lines. McDonald's also slumped by 2.5 percent after the fast food giant reported weaker than expected second quarter earnings on a slightly bigger than expected drop in comparable-restaurant sales. Besides, negative sentiment was also generated by a report from the Conference Board showing consumer confidence deteriorated by more than expected in the month of July. The Conference Board said its consumer confidence index slumped to 92.6 in July after jumping to an upwardly revised 98.3 in June. Street had expected the consumer confidence index to pull back to 95.7 from the 98.1 originally reported for the previous month.


Crude oil futures ended lower on Tuesday amid concerns about the outlook for near term energy demand due to the surge in coronavirus cases and fears of fresh lockdown measures. A report from World Health Organization (WHO) said global Covid-19 cases doubled over the past six weeks. WHO Director-General Tedros Adhanom Ghebreyesus said he would resume the Emergency Committee on Thursday to re-evaluate the Covid-19 pandemic. Meanwhile, the market oil is also preparing for a surge in supply from the Organization of the Petroleum Exporting Countries and their allies, who agreed to relax curbs on output by 2 million barrels a day beginning in August. Crude oil futures for September dropped 56 cents or 1.4 percent to settle at $41.04 a barrel on the New York Mercantile Exchange. September Brent crude declined 19 cents or 0.4 percent to settle at $43.22 a barrel on London's Intercontinental Exchange.


Indian rupee ended marginally weak against the US dollar on Tuesday, on increased demand for the greenback from importers and banks. Sentiments remained fragile with the Chairman of 15th Finance Commission N K Singh's statement that India will see a sharp V-shaped recovery in the third and fourth quarter of the current fiscal (FY21), while he said Gross Domestic Product (GDP) growth in FY21 would ultimately be in negative territory as the coronavirus lockdown led to serious demand and supply dislocations. However, gains in domestic equity markets provided some support to the rupee, keeping the downside in check. On the global front; dollar bounced off a two-year low on Tuesday as selling pressure faded ahead of a Federal Reserve meeting and as political wrangling over the next U.S. fiscal rescue package moved closer to a conclusion. Finally, the rupee ended at 74.84, 1 paise weaker from its previous close of 74.83 on Monday.


The FIIs as per Tuesday's data were net buyers in both equity segment and debt segment. In equity segment, the gross buying was of Rs 4603.03 crore against gross selling of Rs 4563.58 crore, while in the debt segment, the gross purchase was of Rs 820.61 crore with gross sales of Rs 805.81 crore. Besides, in the hybrid segment, the gross buying was of Rs 47.04 crore against gross selling of Rs 6.01 crore.


The US markets ended lower on Tuesday as investors braced for prolonged negotiations between Democrats and Republicans on another round of economic stimulus. Asian markets are trading mixed on Wednesday as investors await the US Federal Reserve's interest rate decision. Indian markets ended notability higher on Tuesday, mirroring firm cues from Asia and Europe as investors weighed the possibility of additional fiscal stimulus from the United States. Today, the start of session is likely to be flat-to-positive despite mixed cues from Asian peers. Traders will be taking encouragement with Industry body CII's statement that high frequency indicators are showing a material improvement as compared to multi-year low seen in April, and pointing towards a V-shaped recovery after the economy suffered on account of lockdown amid the coronavirus pandemic. Some support will also come with Union Minister Nitin Gadkari's statement that the government is making efforts to attract FDI in infrastructure sector to address liquidity crunch faced by the COVID-19-hit economy. Though, rising coronavirus cases may dampen sentiments. India has recorded over 49,000 cases in the past 24 hours, taking its total number of Covid-19-positive cases to 1,532,135. The country's coronavirus caseload is the third-highest in the world, next only to the US (4,498,000) and Brazil 2,484,649. There may be some cautiousness as global forecasting firm Oxford Economics said that it expects India's GDP growth to lose momentum from late third quarter (October-December) of the current fiscal as the push from the initial reopening fades. There will be some buzz in the banking and NBFCs stocks as Prime Minister Narendra Modi will hold a meeting with stakeholders from Banks and NBFCs as well as secretaries to discuss and deliberate on vision and roadmap for the future today. Real estate firm stocks and housing finance companies stocks will be focus with a private report that housing sales plunged 79 per cent to 19,038 units across eight major cities in April-June, as demand was badly impacted due to the nationwide lockdown to control Covid-19 pandemic. There will be some reaction in aviation stocks as International Air Transport Association (IATA) has released recovery estimates on Global passenger traffic and said it would take until 2024 for passenger traffic to return to the pre-crisis level. There will be some important result announcements to keep the markets in action.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



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Tata Motors





State Bank of India





Axis Bank





Zee Entertainment Enterprises






  • ITC has acquired 100% of the equity share capital of Sunrise Foods on July 27, 2020. 
  • IOC and Total have formed a 50:50 JV company that will manufacture and market high-quality bitumen derivatives. 
  • Maruti Suzuki is planning to offer fully-digitised financing options for car buyers. 
  • Wipro has selected Google Cloud as the cloud provider for its enterprise-wide SAP footprint.
News Analysis