Dear Trader…
Indian equity benchmarks continued their weak trade in afternoon session amid downbeat global market sentiment and foreign fund outflows. Foreign Institutional Investors (FIIs) stood as net sellers in the capital market as they offloaded shares worth Rs 802.51 crore on Wednesday. Concerns loomed as regulator bites the bullet on T+1 settlement cycle impacted investors’ sentiments. Move to horter T+1 settlement cycle from 2022 will not be easy and require a coordinated effort among exchanges, depositories, and clearing corporations. Two different settlement cycles on different exchanges for the same scrip can cause liquidity to fragment, which may hamper price discovery and lead to other inefficiencies.
Back home, LIC’s (Life Insurance Corporation of India) IPO seems to be picking up pace now as the government appointed 10 bankers, including Goldman Sachs (India) Securities and JP Morgan India, to help prepare for the behemoth public issue. The government plans to list LIC on the stock exchanges by March 2022. Traders were seen in selling position for Realty, Healthcare and Consumer Durables stocks, while buying was witnessed in Power, Telecom and FMCG stocks.
Nifty futures opened at 17330.00 points against the previous close of 17370.90 and opened at a low of 17301.00 points. Nifty Future closed with an average movement of 72.60 points and a rise of around 6.60 points and 17364.30 points...!!!
On the NSE, the midcap 100 index will rise 0.29% and smallcap 100 index is closing rise 0.64. Speaking of various sectoral indices like Realty, Finance Service, Bank and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, October gold opened at Rs.46938, fell from a high of Rs.47082 points to a low of Rs.46713.00 with a decline of 65 points, a trend of around Rs.46973 and September Silver opened at Rs.64001, fell from a high of Rs.64598 points to a low of Rs.63650, with a decline of 33 points, a trend of around Rs.64150.
Meanwhile, Minister of State for Commerce and Industry Anupriya Patel has expressed hope that the demand of SEZ community for extending the benefits of tax refund scheme RoDTEP to them will soon be addressed.
Patel has stated that under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, various central and state duties, taxes, levies imposed on input products, among others are refunded to exporters to boost exports. At present, SEZs are allowed to sell their products in the domestic market, but after payment of customs duty.
The minister said ‘we are taking this up with the department of revenue and we are very hopeful that your concerns will soon be addressed’. She said that in the guidelines of RoDTEP, there is a provision for considering this issue by the RoDTEP committee. She also said SEZs and EOUs will play an important role in achieving $400 billion exports target for the current fiscal year.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17434 – 17474 levels. Immediate support is placed at 17202 – 17170 levels.
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