Dear
Trader…
Led by ITC and Titan, Sensex recovered from the capital gains
tax shocker in the Union Budget to end at 73 points lower on Tuesday. The index
had fallen up to 1,278 points after Union Finance Minister Nirmala Sitharaman
hiked STCG to 20% and LTCG to 12.5%.
Meanwhile, the broader NSE Nifty Future dropped 56 points or
0.23% to end at 24,452.
From the Sensex pack, Titan and ITC were the top gainers,
rising 6.6% and 5.5%, respectively. Adani Ports, NTPC, Infosys, and HCL Tech
also ended with gains, while L&T, Bajaj Finance, SBI, Axis Bank, HDFC Bank,
and Asian Paints closed with cuts.
Consumer stocks were the top gainers in Tuesday’s trade after
the government said it would allocate Rs 1.52 lakh crore for the agriculture
and allied sectors.
Meanwhile, agriculture stocks like Kaveri Seeds, Mangalam
Seed and Dhanuka Agritech closed upto 15% higher.
Capital goods stocks like L&T, Thermax, ABB India, and
Siemens lost between 1.4% and 3% following the announcement that the government
would not increase the amount it planned to spend on infrastructure.
Meanwhile, the market capitalisation of all listed companies
on BSE declined by Rs 1.89 lakh crore to Rs 446.43 lakh crore. The market
breadth was skewed in favour of the bears. About 1,680 stocks gained, 2,223
declined, and 113 remained unchanged on the BSE.
Global
Market Check –
World markets steadied on Tuesday as investors looked beyond
Joe Biden’s exit from the US presidential race, turning their focus to
corporate earnings and economic data.
The pan-European STOXX index was up 0.1% while US futures
were down 0.2% following a 1.1% rise in the S&P 500 on Monday.
Crude
Oil – Oil prices were flat on Tuesday after a
European Central Bank official hinted at a possible rate cut in September,
offsetting pressure from renewed hopes of a ceasefire in the war in Gaza. Brent
crude futures for September rose 18 cents to $82.58 a barrel. U.S. West Texas
Intermediate crude for September climbed 16 cents to $78.56 per barrel.
Nifty futures opened at 24551 points against the previous
close of 24509 and opened at a low 24066 points. Nifty Future closed with an
average movement of 495 points and a decline of around 56 points and closed 24452
points…!!
Rupee
at record low – The Indian rupee slipped to
record lows on Tuesday as the government raising tax rates for capital gains
from equity investments and on equity derivative trades hurt market sentiment. The
rupee ended slightly lower against the US dollar at 83.6875, its weakest ever
closing, after having slipped to a record low of 83.7150 earlier in the
session.
At the start of intra-day trading, August gold opened at Rs.73838
fell from a high of Rs.72850 points to a low of Rs.68500 with a decline of 4048 points,
a trend of around Rs.68670 and July Silver opened at Rs.88995, fell from a high
of Rs.89015 points to a low of Rs.84275 with a decline of 4122 points, a trend
of around Rs.85057.
Meanwhile,
Domestic investors had high expectations from the
Budget to increase revenue and capital expenditure. However, the narrative is
mixed, by curtailing expenditure while attaining fiscal prudence, which can
limit further growth.
During the year, the market has fairly factored in ongoing
growth and trading at a high premium. To sustain that gap, corporate growth has
to be maintained, which is experiencing a slowdown as per the ongoing Q1
result.
Technically, the
important key resistances are placed in Nifty future are at 24452 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 24505 – 24606 levels. Immediate support is placed at 24240 –
24180 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.Investment
in securities market are subject to market risks. Read Disclaimer and related all
the documents carefully before investing, mentioned on www.nikhilbhatt.in
