Dear Trader…
Indian equity benchmarks closed down on Wednesday as pharma stocks slipped for the second straight session, while investors waited for the outcome of a U.S. Federal Reserve meeting. amid nervousness in the global markets after China's tech crackdown and ahead of the outcome of the US Federal Reserve's policy meeting.
Sentiments were fragile as IMF cut India's gross domestic product (GDP) growth forecast to 9.5 percent for the fiscal year to March 31, 2022 as the onset of a severe second COVID-19 wave cut into recovery momentum. This forecast for 2021-22 is lower than the 12.5 per cent growth in GDP that IMF had projected in April before the second wave took a grip.
Nifty futures opened at 15774.95 points against the previous close of 15734.65 and opened at a low of 15510.00 points. Nifty Future closed with an average movement of 264.95 points and a decline of around 27.15 points and 15707.50 points .. !!
On the NSE, the midcap 100 index will decline 0.51% and smallcap 100 index is closing decline 0.50%. Speaking of various sectoral indices, the NSE saw gains in only Metal, IT and FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.47610, fell from a high of Rs.47689 points to a low of Rs.47511, with a decline of 35 points, a trend of around Rs.47538 and September Silver opened at Rs.66349, fell from a high of Rs.66492 points to a low of Rs.66060, with a rise of 183 points, a trend of around Rs.66239..!!
Meanwhile, Care Ratings in its latest report has said that India’s gross domestic product (GDP) growth is likely to be 8.8 to 9 percent in the current financial year (FY22), driven by agriculture and industry sectors. The country's economy had contracted by 7.3 per cent in fiscal 2020-21. It said the outlook for the Indian economy on almost all counts in FY22 would look seemingly better than FY21 on account of the negative base effect.
According to the report, services sector will not be able to reach its potential even at 8.2 per cent growth as the second lockdown has affected sectors like hotels and restaurants, tourism, retail malls and entertainment in particular. While a lot has been done on the supply side by both the RBI and the government, the malaise is on the demand side which has been a problem even before the pandemic. It said a critical factor this time will be the spending pattern of the rural households and added that the monsoon forecast is good and ideally a stable Kharif harvest should bode well for rural incomes.
The report also said the fiscal deficit for FY22 is projected between Rs 17.38 lakh crore to Rs 17.68 lakh crore. For a nominal GDP of Rs 222.9 lakh crore, it said the increase in quantum of fiscal deficit would potentially push up the fiscal deficit ratio to 7.8-7.9 per cent of GDP. It also said the cost of services has increased across all components, which combined with the fuel-led impact would keep CPI (consumer price index-based inflation) elevated at around 6 per cent by March-end.
Technically, the important key resistances are placed in Nifty future are at 15777 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 – 15818 levels. Immediate support is placed at 15676 – 15606 levels.
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