Indian equity benchmarks fell more than 1% on their worst day in over two months on Monday, dragged down by HDFC Bank-led banking stocks, while a surge in worldwide coronavirus cases hurt global stocks and further dented sentiment. Sentiments were fragile as uncontrolled pandemic in parts of Asia and fear of faltering economic growth. This is despite regular assurances by the US Fed that it will keep pumping cheap money into the system until the economy is out of the woods.
Traders were also worried amid reports that foreign portfolio investors (FPIs) have pulled out Rs 4,515 crore from the equities segment in the first half of July as they turn cautious towards the Indian market. Investors’ shrugged of RBI’s report stating that the overseas direct investment of domestic companies more than doubled to $2.80 billion in June this year. On the global front, all Asian markets were under pressure as pessimism took hold following rising COVID-19 infections regionally and Wall Street’s first weekly loss following three weeks of gains.
Nifty futures opened at 15936.00 points against the previous close of 15770.00 and opened at a low of 15705.95 points. Nifty Future closed with an average movement of 130.50 points and a rise of around 174.70 points and 15761.30 points .. !!
On the NSE, the midcap 100 index will decline 0.81% and smallcap 100 index is closing rise 0.03%. Speaking of various sectoral indices, the NSE saw gains in Pharma and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.48083, fell from a high of Rs.48170 points to a low of Rs.47870, with a decline of 113 points, a trend of around Rs.47940 and September Silver opened at Rs.68121, fell from a high of Rs.68121 points to a low of Rs.67550, with a decline of 701 points, a trend of around Rs.67618..!!
Meanwhile, Finance Minister Nirmala Sitharaman has said that India’s continuous wide-ranging reforms make the country an attractive destination for foreign investments. She also mentioned about stimulus packages announced recently; as well as strong, calibrated relief and reforms during COVID leading to sharp decline in new infections with ramping up of the vaccination programme.
Continued macro-economic stability and resilience in economic recovery in the recent months, focus on infrastructure-led economic growth, and multi-sectoral opportunities for investors are some of key highlights shared by the Finance Minister. She also said India has vibrant and pulsating financial markets, enormous investments opportunity in infrastructure sector and R&D.
Sitharaman also mentioned this year’s budget initiative pertaining to International Financial Services Centre (IFSC) at GIFT City, where the government is committed towards developing it into a globally competitive hub for innovation and financial activities to serve the Indian economy and the region as a whole.
Technically, the important key resistances are placed in Nifty future are at 15760 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 15808 – 15888 levels. Immediate support is placed at 15707 – 15636 levels.