Dear Trader…
Indian equity benchmarks closed at record highs on Thursday, boosted by technology stocks, as investors awaited key earnings reports after IT major Infosys lifted its annual revenue outlook. Sentiments were upbeat with a private report stated that IT spending in the country is expected to grow at 8 per cent to $92.7 billion in 2021. The growth at 8 percent is a shade less than the world average of 8.6 per cent and global spends on information technology are estimated to come at $4.2 trillion.
On the sectoral front, textile stocks were in limelight as garment exporters will continue to get a rebate on central and state taxes on their outward shipments as the government on Wednesday approved extension of RoSCTL scheme till March 2024. On the global front, Asian markets were trading mostly higher as economic data from China was largely more resilient than expected, and as US Federal Reserve chair Jerome Powell said tapering of its massive stimulus was still a way off.
Nifty futures opened at 15869.05 points against the previous close of 15879.00 and opened at a low of 15866.55 points. Nifty Future closed with an average movement of 100.95 points and a rise of around 70.95 points and 15940.00 points .. !!!
On the NSE, the midcap 100 index will rise 0.48% and smallcap 100 index is closing rise 0.95%. Speaking of various sectoral indices, only Auto, Media, PSU Bank 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.48270, fell from a high of Rs.48501 points to a low of Rs.48236, with a decline of 29 points, a trend of around Rs.48270 and September Silver opened at Rs.69500, fell from a high of Rs.69889 points to a low of Rs.69460, with a rise of 64 points, a trend of around Rs.69476..!!
Meanwhile, S&P Global Ratings has affirmed India's sovereign rating at the lowest investment grade of 'BBB-' for the 14th year in a row with a stable outlook, and said that the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months. It stated that the sovereign credit ratings on India reflect the economy's above-average long-term real GDP growth, sound external profile, and evolving monetary settings.
It also said India's democratic institutions promote policy stability and compromise, and also underpin the ratings. These strengths are balanced against vulnerabilities stemming from the country's low per capita income and weak fiscal settings, including consistently elevated general government deficits and indebtedness. It has forecast economic activity in India to begin to normalise throughout the remainder of fiscal 2022, resulting in real GDP growth of about 9.5 per cent. It noted that a significant proportion of this rebound will be due to the very weak base in the prior fiscal year, when the economy contracted by a record 7.3 per cent.
Technically, the important key resistances are placed in Nifty future are at 16006 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 16088 – 16106 levels. Immediate support is placed at 15878 – 15808 levels.
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