Bulls went
brisk on Dalal Street on second day in the row, with frontline gauges logging
new record highs for yet another day, conquering their crucial 11,250 (Nifty)
and 37,300 (Sensex) bastions for the first time ever on Friday. After a gap-up
opening, 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 with Niti Aayog CEO Amitabh Kant's statement that the
government's digitization initiative will bring more transparency in the
system. Traders remained optimistic with a private report that after almost a
year and half of disruptions in Indian economy due to demonetisation and the
Goods and Services Tax (GST), the consumer sentiment is up in the month of July
on all fronts from jobs, investments, health of the economy to personal
finance. Meanwhile, a report stated that the BRICS nations resolved to
strengthen multilateral trading system and called upon member countries of the
World Trade Organisation to abide by the rules, amid ongoing trade disputes
between major economies. Markets extended northward journey to end near
intraday highs on private report stating that trading across borders, payment
of indirect taxes and insolvency resolution are the three sets of reforms where
India is upbeat, ahead of the release of the World Bank's ease of doing
business report later this year. Investors took encouragement with report that
foreign direct investment (FDI) from nations widely regarded as tax havens such
as Cayman Islands and Hong Kong jumped in 2017-18, even as overall India-bound
investments showed a slower rise, year-on-year (Y-o-Y). From the Cayman
Islands, inflows rose in a single year from a low $71.03 million to a whopping
$1.23 billion. Traders got some support with Principal Deputy Assistant
Secretary of State for South and Central Asia's statement that the US wants to
reduce its trade deficit with India as quickly as possible, asserting that the
Trump administration is aggressively pushing New Delhi on the issues of medical
devices, pharmaceuticals, dairy products and agriculture. Finally, the BSE
Sensex surged 352.21 points or 0.95% to 37,336.85, while the CNX Nifty was up
by 111.05 points or 0.99% to 11,278.35.
The US markets slid firmly into
negative territory after ending the previous session mixed. Major averages
traded lackluster in first half of the day but selling in second half took
benchmarks near intraday lows. The weakness that emerged on Wall Street
reflected a negative reaction to earnings news from companies such as Twitter
(TWTR), Intel (INTC) and Exxon Mobil (XOM). Meanwhile, traders largely shrugged
off a report from the Commerce Department showing a significant acceleration in
the pace of U.S. economic growth in the second quarter. The report said real
gross domestic product jumped by 4.1 percent in the second quarter following a
2.2 percent increase in the first quarter. Economists had expected GDP to surge
up by 4.2 percent. The faster rate of GDP growth reflected accelerations in
consumer spending and exports, a smaller decrease in residential fixed
investment, and accelerations in federal government spending and in state and
local spending. A separate report from the University of Michigan showed consumer
sentiment deteriorated by less than initially estimated in the month of July. Despite
the upward revision, the index was still down from 98.2 in June. The S&P
500 declined 18.62 points or 0.66 percent to 2818.82 and the Nasdaq shed 114.77
points or 1.46 percent to 7737.42 and the Dow Jones Industrial Average was down
by 76.01 points or 0.30 percent to 25,451.06.
Crude oil
futures ended lower on Friday, despite data from the U.S. Commerce Department
showing the U.S. economy to have grown at its fastest pace in nearly four years
in the second quarter. Since the data fell slightly short of forecasts, it
failed to trigger any big buying in equity markets or in the commodities
exchange. The impact of US sanctions on Iran with regard to crude oil has
already been factored in and hence crude is unable to make any significant
progress. Meanwhile, according to a report from Baker Hughes, three oil rigs
were added in U.S. by energy companies in the week ended July 27, making the
total rigs count to 863 now. Benchmark crude oil futures for September declined
92 cents or 1.3 percent to settle at $68.69 a barrel on the New York Mercantile
Exchange. September Brent crude shed 25 cents or 0.3 percent at $74.29 a barrel
on London's Intercontinental Exchange.
Indian
rupee ended marginally lower against US dollar on Friday, due to fresh demand
for the American currency from banks and importers. Traders remained cautious
ahead of RBI policy meeting that is scheduled for next week and preliminary GDP
number that will be released from the US. Investors overlooked report that
foreign direct investment (FDI) from nations widely regarded as tax havens such
as Cayman Islands and Hong Kong jumped in 2017-18, even as overall India-bound
investments showed a slower rise, year-on-year (Y-o-Y). From the Cayman
Islands, inflows rose in a single year from a low $71.03 million to a whopping
$1.23 billion. On the global front, dollar trimmed its losses against the yen on
Friday after the Bank of Japan conducted a special government bond-buying
operation to arrest a rise in long-term yields. Finally, the rupee ended at
68.66, 1 paise weaker from its previous close of 68.65 on Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 9752.90 crore against gross
selling of Rs 6977.23 crore, while in the debt segment, the gross purchase was
of Rs 411.80 crore with gross sales of Rs 1324.85 crore. Besides, in the hybrid
segment, the gross buying was of Rs 1.67 crore against gross selling of Rs 5.85
crore.
The US markets ended lower on
Friday, as traders remained concern on account of mixed batch of earnings news
from big-name companies. Investors failed to get any relief with report from
the Commerce Department showing a significant acceleration in the pace of U.S.
economic growth in the second quarter. Asian markets are trading mostly in red
with focus shifting to the Bank of Japan and other central banks that are
holding meetings this week. Indian equity markets hit fresh record highs on
Friday, with encouraging first-quarter earnings and positive cues from global
markets helping underpin investors' sentiment. Today, markets are likely to
make negative start amid feeble global cues. Traders may remain on sidelines
ahead of Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) which
is slated to meet during July 30 to August 1 for the third bi-monthly monetary
policy statement for 2018-2019. Traders may remain concern on private report
that the RBI's rate-setting panel will go for a status quo on key policy rates
at the August monetary policy review. The report acknowledged that the risks on
inflation still persist, but added that the rise in food prices (in June and
July) has been lower than the historical trend. However, traders may get some
support later in the day with Aayog CEO Amitabh Kant's statement that the
country needs to improve its human development index (HDI) to achieve a growth
of around 10 per cent. Traders may also get some support with report that
foreign investors have put in over Rs 1,800 crore in the Indian equity markets
so far in July after pulling out massive funds in the preceding month. The
latest inflow comes after such investors had taken out more than Rs 20,000
crore from the stock market during April-June. Stocks of cement, ACs and
televisions manufacturer will be in focus after Union Minister Arun Jaitley
exuded confidence that GST rates on cement, ACs and televisions will be cut as
tax revenues increase, and only luxury and sin goods will attract the highest
slab of 28 per cent.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,278.35
|
11,231.27
|
11,304.42
|
BSE Sensex
|
37,336.85
|
37,191.61
|
37,425.35
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
758.62
|
302.55
|
295.98
|
308.13
|
SBI
|
321.75
|
286.75
|
282.23
|
294.13
|
ICICI Bank
|
309.27
|
293.20
|
285.22
|
298.17
|
Hindalco
Industries
|
300.06
|
213.40
|
210.00
|
218.80
|
Yes Bank
|
171.01
|
370.00
|
363.30
|
375.80
|
Bharti Airtel has reported a fall of 73.51% in its consolidated net profit at Rs 97.30 crore for Q1FY19 as compared to Rs 367.30 crore for Q1FY18.
Lupin has launched Desoximetasone Topical Spray, 0.25%, having received an approval from the USFDA earlier.
ITC has reported 10.08% rise in its net profit at Rs 2,818.68 crore for Q1FY19 as compared to Rs 2,560.50 crore for Q1FY18.
Adani Ports has signed a long term agreement with GAIL India to provide LNG regasification services on a use or pay basis, at its upcoming LNG import terminal at Dhamra in the state of Odisha.