Dear Trader…
Indian equity benchmarks ended with marginal gains on Tuesday, on the back of buying in index heavyweights such as Bharti Airtel, Tech Mahindra and HDFC amid a largely positive trend in global markets. Markets made positive start and traded higher for most part of the day, as sentiments got a boost with the Centre for Monitoring Indian Economy (CMIE) data showing that India witnessed an addition of 16 million jobs in July mainly in the agriculture and construction sectors.
Some optimism also came with the Finance Ministry’s statement that a Bill to end retrospective taxes imposed on indirect transfer of Indian assets will encourage companies to invest in India and help the country become a $5-trillion economy.
Nifty futures opened at 16259.90 points against the previous close of 16262.95 and opened at a low of 16209.50 points. Nifty Future closed with an average movement of 149.50 points and a rise of around 7.45 points and 16270.40 points...!!!
On the NSE, the midcap 100 index will decline 1.09% and smallcap 100 index is closing decline 2.30. Speaking of various sectoral indices, the NSE saw gains in IT and Financial Services and Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.46000, fell from a high of Rs.46112 points to a low of Rs.45832, with a decline of 2 points, a trend of around Rs.45884 and September Silver opened at Rs.63093, fell from a high of Rs.63239 points to a low of Rs.62184, with a decline of 192 points, a trend of around Rs.62445.
Meanwhile, Reserve Bank of India (RBI) has issued draft guidelines to further liberalise regulatory framework governing overseas investments with a view to promote ease of doing business. The RBI has placed on its website two documents -- draft Foreign Exchange Management (Non-debt Instruments - Overseas Investment) Rules, 2021 and draft Foreign Exchange Management (Overseas Investment) Regulations, 2021.
The Draft Foreign Exchange Management (Non-debt Instruments - Overseas Investment) Rules, 2021 has outlined the restrictions on overseas investments. As per the draft, a person resident in India is prohibited from making Overseas Direct Investment (ODI) in a foreign entity engaged in real estate activity; gambling in any form; and offering financial products linked to Indian Rupee except for products offered in an IFSC. Also, it said overseas investment will remain prohibited a foreign entity located in countries/ jurisdictions that are not Financial Action Task Force (FATF) and International Organization of Securities Commissions (IOSCO) compliant country or any other country/ jurisdiction as may be prescribed by the central government.
The other draft on Foreign Exchange Management (Overseas Investment) Regulations, 2021 proposes that an Indian entity may lend or invest in any debt instruments issued by a foreign entity subject to such loans duly backed by a loan agreement and the rate of interest shall be charged on an arm's length basis, among other things.
Technically, the important key resistances are placed in Nifty future are at 16303 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 16373 – 16404 levels. Immediate support is placed at 16202 – 16160 levels.
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