Dear Trader…
Indian shares ended points away from record levels on Monday, lifted by strong gains in financials and on hopes of a sustained economic recovery with wider availability of COVID-19 vaccines. Additional support also came as in reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing Rs 13,269 crore in Indian markets.
Traders seem to have overlooked report that India's services sector activities contracted further in June as the intensification of the COVID-19 crisis and reintroduction of containment measures restricted demand. The seasonally adjusted India Services Business Activity Index fell from 46.4 in May to 41.2 in June, as new work intakes and output contracted at the fastest rates since July 2020, which prompted companies to reduce employment again.
Nifty futures opened at 15757.00 points against the previous close of 15741.55 and opened at a low of 15757.00 points. Nifty Future closed with an average movement of 789.50 points and a rise of around 126.45 points and 15868.00 points .. !!!
On the NSE, the midcap 100 index will rise 0.53% and smallcap 100 index is closing rise 0.79%. Speaking of various sectoral indices, only IT and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.47349, fell from a high of Rs.47425 points to a low of Rs.47260, with a rise of 24 points, a trend of around Rs.47309 and September Silver opened at Rs.70445, fell from a high of Rs.70589 points to a low of Rs.70173, with a rise of 7 points, a trend of around Rs.70195..!!
Meanwhile, ratings agency ICRA in its latest report has said that revenue growth of some of the leading drugs firms is estimated at 7-9 percent in FY2022 and 8-11 percent in FY2023, with gradual improvement in the COVID-19 situation in the country. It noted that the growth will be supported by the consistent demand for pharmaceutical products and low base of FY2021, though some impact on volume growth will be witnessed due to the second wave of COVID-19 2.0 related lockdowns.
According to the report, the credit outlook for the Indian pharmaceutical industry remains stable led by healthy accruals, low leverage levels and healthy liquidity profile of the pharmaceutical companies. It expects the credit metrics of its sample set of Indian pharmaceutical companies to remain comfortable despite higher capital expenditure and R&D expenses. Furthermore, it added that the liquidity profile of these companies is also expected to remain comfortable.
The ratings agency has noted that the impact of COVID-19 on the Indian drug firms was relatively limited last fiscal due to consistent demand for pharmaceutical products and resumption of imports of key input materials from China from March 2020 onwards. The revenue growth for ICRA sample of 21 companies remained muted at 5.8 per cent in FY2021.
Technically, the important key resistances are placed in Nifty future are at 15930 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 16008 – 16088 levels. Immediate support is placed at 15808 – 15787 levels.
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