Dear Trader…
Indian equity benchmarks closed at record closing highs for yet another session driven by gains in index major Reliance Industries amid by largely positive trend in global markets and sustained foreign fund inflows. Benchmarks made positive start, as sentiments got boost with the commerce ministry's provisional data showed that India's exports jumped 45.17 per cent to $33.14 billion in August as against $22.83 billion in the same month last year. However, benchmarks witnessed volatility in late morning deals due to a consistent rise in the coronavirus cases and fear of a third Covid wave is driving investors towards defensive bets.
Some concern also came with Ratings agency ICRA’s statement that fiscal balances of 19 states in the quarter ended June of current financial year (Q1FY22) are weaker than pre-Covid levels with milder recovery in revenue and spending. But, markets soon regained positive momentum to end higher as India’s service sector growth resumed in the month of August as the pandemic continued to recede and vaccine access improved.
Nifty futures opened at 17261.55 points against the previous close of 17247.25 and opened at a low of 17211.00 points. Nifty Future closed with an average movement of 131.45 points and a rise of around 84.75 points and 17329.35 points...!!!
On the NSE, the midcap 100 index will rise 0.50% and smallcap 100 index is closing rise 0.41. Speaking of various sectoral indices, only Finance Service, Bank and FMCG 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.47095, fell from a high of Rs.47447 points to a low of Rs.47035.00 with a rise of 364 points, a trend of around Rs.47355 and September Silver opened at Rs.63389, fell from a high of Rs.64533 points to a low of Rs.63276, with a rise of 1190 points, a trend of around Rs.64475.
Meanwhile, Ratings agency ICRA has said that fiscal balances of 19 states in the quarter ended June of current financial year (Q1FY22) are weaker than pre-Covid levels with milder recovery in revenue and spending. The agency stated citing data from the Comptroller and Auditor General (CAG), the combined revenue receipts were only 2% higher than the pre-Covid level of Rs 4.3 lakh crore but revenue spending increased by a sharper 14% to Rs 4.9 lakh crore from Rs 4.3 lakh crore pre-Covid, possibly reflecting higher social sector spending amid the second wave of Covid-19.
Aditi Nayar, chief economist at ICRA said ‘Accordingly, the 19 states’ combined revenue balance has slipped into a deficit of Rs 0.5 lakh crore in Q1 FY22, in contrast to the small surplus of Rs 0.1 lakh crore in Q1 FY20'.
ICRA noted that the state's own tax revenues (SOTR) in Q1 FY22 trailed the pre-Covid levels by 3 per cent, on account of stamps and registrations (S&R), and excise duty collections, even as sales tax and state goods and services tax (SGST) exceeded their pre-Covid levels.
Technically, the important key resistances are placed in Nifty future are at 17373 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 17404 – 17434 levels. Immediate support is placed at 17272 – 17202 levels.
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