Dear Trader…
Indian equity benchmarks erased all losses to turn positive in today session, Buying in frontline stocks such as Axis Bank, Bharti Airtel and Tata Steel were aiding sentiment, while selling in Nestle, HCL Tech and Infosys kept the gains in the markets in check. Traders took some solace as foreign institutional investors were stood as net buyers in the capital market on Monday as they purchased shares worth Rs 156.08 crore, as per stock exchange data.
However, upside remain capped with private report stating that American brokerage has cut its FY23 real GDP expansion estimate for India by 0.40 per cent to 7.2 per cent on slower global growth. It said the GDP growth will slow down to 6.4 per cent in FY24, adding that this is lower by 0.30 per cent compared to the earlier estimate. On the global front, Asian markets were trading mixed as traders continued to worry about the economic outlook ahead of next week's US Federal Reserve monetary policy meeting.
Nifty futures opened at 16199.50 points against the previous close of 16300.25 and opened at a low of 16198.95 points. Nifty Future closed with an average movement of 165.55 points and a rise of around 37.75 points and 16338.00 points...!!
On the NSE, the midcap 100 index will rise 0.67% and smallcap 100 index is closing rise 1.02%. Speaking of various sectoral indices only Media and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.50300, fell from a high of Rs.50489 points to a low of Rs.50211 with a rise of 13 points, a trend of around Rs.50374 and September Silver opened at Rs.55681, fell from a high of Rs.56000 points to a low of Rs.55501, with a decline of 319 points, a trend of around Rs.55772.
Meanwhile, Minister of State for Finance Bhagwat Karad has said that scheduled commercial banks (SCBs) recovered bad loans worth over Rs 8.6 lakh crore over the last eight financial years (provisional data), as a result of comprehensive steps taken by the government and RBI to check the cases of non-performing assets (NPAs) and bring them down. He also said that the occurrence of NPAs is normal, although an undesirable, corollary to the business of banking.
The minister noted that several factors -- including prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by banks, aggressive lending during upturns, improper risk pricing, and poor credit underwriting -- are attributed to NPA build-up. He said the government and RBI regularly issue guidelines and have taken several initiatives aimed at resolution of long-standing stressed assets on the books of banks as well as timely identification and recognition of stress immediately upon default and take corrective action for mitigation of the same.
He further said these measures complement the statutory provisions already available to lenders for recovery and resolution, including, the Recovery of Debts and Bankruptcy Act, 1993, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and Insolvency & Bankruptcy Code, 2016 (IBC).
Technically, the important key resistances are placed in Nifty future are at 16404 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 16440 – 16474 levels. Immediate support is placed at 16272 – 16202 levels.
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