Dear Trader…
Indian equity benchmarks bounced back after a two-day fall and ended higher by over half percent on Thursday amid heavy buying in index heavyweight Reliance Industries and positive trends from European markets. Markets made negative start and traded volatile, as traders were concerned as the Ministry of Finance said the gross GST (Goods and Services Tax) revenue for the month of May crossed over Rs 1.40 lakh crore, a 16.6 per cent drop in comparison to April when GST collections were at a record high.
However, key gauges staged a one-way upmove in afternoon deals, as traders found some solace after state Bank of India (SBI) in a research report revised India's gross domestic product (GDP) growth forecast for the financial year 2022-23 to 7.5 per cent, which is 0.20 per cent higher from its earlier projection. Sentiments remained up-beat after Icra Ratings in its report has said that manufacturing sector capital expenditure is on course for a leg-up with overwhelming responses to the government's production-linked incentives schemes, especially for lithium-ion battery, pharma and solar module segments.
Nifty futures opened at 16448.00 points against the previous close of 16508.10 and opened at a low of 16430.00 points. Nifty Future closed with an average movement of 215.00 points and a rise of around 121.90 points and 16630.00 points...!!
On the NSE, the midcap 100 index will rise 0.68% and smallcap 100 index is closing rise 0.61%. Speaking of various sectoral indices only Auto, Financial Services and Bank stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, April gold opened at Rs.50928, fell from a high of Rs.51012 points to a low of Rs.50928 with a rise of 224 points, a trend of around Rs.51012 and March Silver opened at Rs.61428, fell from a high of Rs.62341 points to a low of Rs.61343, with a rise of 516 points, a trend of around Rs.62096.
Meanwhile, Icra Ratings in its report has said that manufacturing sector capital expenditure is on course for a leg-up with overwhelming responses to the government's production-linked incentives schemes, especially for lithium-ion battery, pharma and solar module segments. So far the PLI (Production-Linked Incentive) scheme has received robust response in green initiative spaces such as renewable energy as well as ACC (Advanced Chemistry Cell) battery manufacturing. This shows that the scheme is on track to revive the manufacturing capex (capital expenditure).
The government has extended the scheme for a second round on the back of encouraging response in a few sectors. Also, it has increased or is planning to increase the outlay for some sectors. In the renewables space, the government raised the outlay for solar PV modules to Rs 24,000 crore in the FY23 budget after witnessing an encouraging response in the first round of the scheme with an initial outlay of Rs 4,500 crore. According to Rohit Ahuja, head of research and outreach at Icra, the success of the scheme indicates that the government is on track to enhance manufacturing capex. There is a high probability of the outlay for certain sectors, especially in green initiative space, being expanded. He warned however in the wake of rising input costs and the anti-inflationary measures, execution delays in certain sectors can be a concern.
Technically, the important key resistances are placed in Nifty future are at 16676 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 16707 – 16737 levels. Immediate support is placed at 16474 – 16404 levels.
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