Indian equity indices were closed at day’s high point on the back broad based buying in frontline blue chip counters by fund and retail investor amid positive global cues. The rally in domestic equities was triggered by positive reaction to the latest batch of earnings reports from several big-name companies in US, which indicated that the world’s biggest economy is on the path of recovery.
Traders shrugged off rating agency Crisil Ratings report stating that the collection ratios in securitised pools have seen a dip during the second wave of the Covid-19 pandemic. The agency said unlike in the first wave, the decline in the second wave has not been as sharp for two reasons – localised restrictions limited the impact on business activity, and lack of moratorium from lenders meant that borrowers could not postpone their debt repayments.
Meanwhile, Chris Whitty, the chief medical officer for England, recently announced that the delta variant is no longer of concern because it now comprises 98 per cent of new cases in the country and is therefore ‘the normal variant’.
Nifty futures opened at 15700.05 points against the previous close of 15637.20 and opened at a low of 15700.05 points. Nifty Future closed with an average movement of 128.75 points and a rise of around 186.25 points and 15823.45 points .. !!!
On the NSE, the midcap 100 index will rise 1.14% and smallcap 100 index is closing rise 1.47%. Speaking of various sectoral indices, the NSE saw heavy gains in metal, IT, realty, media and financial services stocks, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.47500, fell from a high of Rs.47531 points to a low of Rs.47301, with a decline of 198 points, a trend of around Rs.47375 and September Silver opened at Rs.67037, fell from a high of Rs.67149 points to a low of Rs.66661, with a decline of 419 points, a trend of around Rs.66718..!!
Meanwhile, Finance Minister Nirmala Sitharaman has sought Parliament nod to spend a net additional Rs 23,675 crore, including Rs 17,000 crore for the health ministry, in the current financial year. As per the first batch of supplementary demands for grants tabled in the Lok Sabha by Sitharaman, although the gross additional expenditure is over Rs 1.87 trillion in 2021-22, the actual cash outgo will only be Rs 23,674.81 crore as the remaining spending will be met through savings and higher receipts and recoveries.
A substantial chunk of the total gross spending is towards transfer to states for shortfall in goods and services tax compensation cess. Rs 1.59 trillion would be transferred to states as back-to-back loan in lieu of the GST compensation shortfall. However, this will not entail any cash outgo. The supplementary demands for grants said ‘As the back-to-back loan are to be met from equivalent capital receipts, the expenditure will not entail any additional cash outgo’.
Technically, the important key resistances are placed in Nifty future are at 15888 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 15909 – 15919 levels. Immediate support is placed at 15777 – 15707 levels.