Dear Trader…
Indian equity benchmarks surged to record closing highs on Wednesday, led by gains in NTPC, Bharti Airtel and HCL Technologies. Key indices made positive start and stayed in green for whole day, as India’s merchandise exports rose by 45.76% in August 2021 as compared to same period of last year on account of healthy growth in segments like engineering, petroleum products, gems and jewellery and chemicals.
Sentiments remained up-beat with Union Minister for Road Transport and Highways’ statement that the bilateral trade between India and the US has grown from $16 billion to $149 billion in the last two decades. He said, the trade is projected to reach $500 billion by 2025.
Markets extended gains in late afternoon session to end near intraday highs, taking support from private report stating that India remains an attractive destination for foreign direct investments (FDI) on account of healthy prospects of economic growth and its skilled workforce.
Nifty futures opened at 17405.10 points against the previous close of 17384.95 and opened at a low of 17380.90 points. Nifty Future closed with an average movement of 164.45 points and a rise of around 150.15 points and 17535.10 points...!!!
On the NSE, the midcap 100 index will rise 1.02% and smallcap 100 index is closing rise 0.65. Speaking of various sectoral indices only Media 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.47185, fell from a high of Rs.47264 points to a low of Rs.47055.00 with a decline of 142 points, a trend of around Rs.47118 and September Silver opened at Rs.63398, fell from a high of Rs.63487 points to a low of Rs.63196, with a decline of 252 points, a trend of around Rs.63333.
Meanwhile, the Finance Ministry has permitted 11 states to borrow an additional amount of Rs 15,721 crore after these states achieved the capital expenditure target set for the June quarter. These states are Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan and Uttarakhand.
The Ministry stated ‘11 states...have achieved the target set by the Ministry of Finance for the capital expenditure in the 1st Quarter of 2021-22. As an incentive, these States have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore.’ The additional open market borrowing permission granted is equivalent to 0.25 per cent of their Gross State Domestic Product (GSDP). Additional financial resources thus made available will help the States in pushing their capital expenditure further. It said capital expenditure has a high multiplier effect, enhances the future productive capacity of the economy, and results in a higher rate of economic growth.
Accordingly, out of the net borrowing ceiling (NBC) of 4 per cent of GSDP for the states for 2021-22, 0.50 per cent of GSDP was earmarked for incremental capital expenditure to be incurred by the States during 2021-22. The target for incremental capital expenditure for each state to qualify for this incremental borrowing was fixed by the Department of Expenditure.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17616 – 17636 levels. Immediate support is placed at 17505 – 17474 levels.
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