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Indian shares ended lower for a second straight session on Tuesday, weighed down by losses in financial stocks, while heavyweight oil and gas companies tracked a fall in oil prices.

Dear Trader…

Indian shares ended lower for a second straight session on Tuesday, weighed down by losses in financial stocks, while heavyweight oil and gas companies tracked a fall in oil prices. Sentiments were fragile as S&P Global cut its growth forecasts for some of Asia’s top economies including India, the Philippines and Malaysia, offsetting upgrades to China and South Africa and much of Latin America. The estimates, which feed into S&P’s closely-followed sovereign ratings, saw India’s growth projection chopped to 9.5% from 11% due to its COVID-19 outbreak. On the global front, Asian markets were trading mostly lower weighed down by the concerns over spiking covid-19 cases despite of faster vaccine rollout.

Nifty futures opened at 15843.10 points against the previous close of 15854.95 and opened at a low of 15758.70 points. Nifty Future closed with an average movement of 101.30 points and a decline of around 62.95 points and 15792.00 points .. !!!

On the NSE, the midcap 100 index will decline 0.50% and smallcap 100 index is closing rise 0.14%. Speaking of various sectoral indices, the NSE saw gains in FMCG and Pharma stocks, while all other sectoral indices closed lower.

At the start of intra-day trading, august gold opened at Rs.46880, fell from a high of Rs.46970 points to a low of Rs.46648, with a decline of 292 points, a trend of around Rs.46716 and July Silver opened at Rs.67869, fell from a high of Rs.68145 points to a low of Rs.67380, with a decline of 743 points, a trend of around Rs.67398..!!

Meanwhile, domestic rating agency ICRA in its latest report has said that nearly a third of loans by Non-Banking Financial Companies (NBFCs) are in risky segments, and the already elevated non-performing assets (NPA) ratio for such lenders are expected to rise by up to 1 percent in FY22 due to the impact of the second COVID-19 wave. Estimate on the overall assets under management (AUM) growth for non-bank lenders has been revised down to 7-9 percent as against 8-10 percent earlier by ICRA because of the setback in disbursements in the first quarter of the fiscal, impacted by the second wave.

According to the report, entities would also be faced with increased asset quality pressures as prolonged stress in the operating environment would push the gross stage3/NPAs by about 0.50-1 percent in the current fiscal; it increased by about 0.40-50 percent during the last fiscal. About 30 percent of the non-bank exposure is deemed to be in the risky segments like real estate, personal credit, microfinance, unsecured SME, and segments of commercial vehicle and passenger vehicle financing, which were more severely affected by the pandemic. It noted that geographically, large states like Maharashtra, Karnataka, and Tamil Nadu, which accounted for around 40 percent of the sectoral credit, were among the severely affected states by the second wave and witnessed tighter restrictions.

Technically, the important key resistances are placed in Nifty future are at 15838 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 15888 – 15909 levels. Immediate support is placed at 15606 – 15474 levels.

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