Dear
Trader…
Indian equity benchmarks ended over
a percent lower on Friday, dragged by heavy selling pressure in Realty and
Metal stocks on profit-taking and weak global market trends. After making slightly positive start, key
gauges traded on flat note as traders got anxious with an analysis of
industrial output and merchandise exports by India Ratings and Research
suggested that the Indian manufacturing sector, which received a fillip in FY22
due to export growth, is likely to be hit by a slump in foreign trade activity
in FY23.
Sentiments remained down-beat in
late afternoon deals, as Reserve Bank of India turned net seller of the US
currency in June after it sold $3.719 billion on a net basis. In the reporting
month, the central bank purchased $18.96 billion from the spot market and sold
$22.679 billion. Some concerns also came with the finance ministry stating that
exemptions specified in Free Trade Agreement (FTA) with regard to country of
origin will prevail in case of conflict between revenue department and
importer.
Nifty futures opened at 17980.00 points
against the previous close of 17980.35 and opened at a low of 17712.60 points.
Nifty Future closed with an average movement of 277.35 points and a decline of
around 248.75 points and 17731.60 points…!!
On the NSE, the midcap 100 index
will decline 1.45% and smallcap 100 index is closing decline 1.21%. Speaking of
various sectoral indices, the NSE saw gains in only IT stocks, while all other
sectoral indices closed lower.
At the start of intra-day trading, October
gold opened at Rs.51524, fell from a high of Rs.51671 points to a low of Rs.51436
with a rise of 28 points, a trend of around Rs.51631 and September Silver
opened at Rs.56037, fell from a high of Rs.56205 points to a low of Rs.55593,
with a decline of 615 points, a trend of around Rs.55828.
Meanwhile, India Ratings and
Research in a report on analysis of industrial output and merchandise exports
has stated that the Indian manufacturing sector, which received a fillip in
FY22 due to export growth, is likely to be hit by a slump in foreign trade
activity in FY23. The report suggested that the ‘exuberance’ witnessed in
merchandise exports in FY22 helped the manufacturing segments. It added that
‘surge in merchandise exports helped the manufacturing sector in FY22, but was
not broad-based and may not sustain in FY23’.
It further said the exports trend of
FY22 may not sustain in FY23 due to the adverse impact of the Russian invasion
of Ukraine, leading to recessionary concerns in the advanced economies,
stringent COVID-19 control measures in China impacting production in various
sub-sectors in India, and continued disruptions in global supply chain/trading
sanctions imposed on Russia.
The report said India’s average
annual merchandise exports during FY16-FY20 were $297.02 billion, having peaked
at $330.08 billion in FY19. The same jumped to the highest-ever $421.89 billion
in FY22. It said ‘since the pickup in merchandise exports has primarily been
driven by the higher exports of manufactured goods, its spillover effect was
expected to be visible in the higher capacity utilisation and an improvement in
the industrial growth numbers in FY22’.
Technically, the important key
resistances are placed in Nifty future are at 17808 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 17939
– 18008 levels. Immediate support is placed at 17606 – 17474 levels.
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