Dear Trader…
Indian equity benchmarks ended the day flat with negative bias after witnessing volatility on Thursday as market participants remained on sidelines ahead of the Reserve Bank of India's monetary policy decision due on Friday. Key gauges made positive start, as traders took some support as the finance ministry released the fifth instalment of revenue deficit grant of Rs 7,183 crore to 14 states for the current fiscal.
However, markets erased all of their gains and fell sharply in afternoon deals, as traders got anxious with the government data showed that India's foreign direct investment to gross domestic product ratio eased to 2.7% in fiscal year ending March 31, 2022 from 3.1% in the previous financial year. But, markets managed to trim most of losses in late afternoon trade, as traders found some solace with from domestic rating agency’s report in which it has revised the growth estimate for Housing Finance Companies (HFCs) to 10-12 per cent for FY23 from an earlier projection of 9-11 per cent.
Nifty futures opened at 17456.00 points against the previous close of 17407.15 and opened at a low of 17178.00 points. Nifty Future closed with an average movement of 327.30 points and a decline of around 37.15 points and 17370.00 points...!!
On the NSE, the midcap 100 index will decline 0.58% and smallcap 100 index is closing decline 0.36%. Speaking of various sectoral indices, the NSE saw gains in Pharma, IT, Metal, FMCG and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.51651, fell from a high of Rs.53113 points to a low of Rs.51550 with a rise of 409 points, a trend of around Rs.52103 and September Silver opened at Rs.57601, fell from a high of Rs.58500 points to a low of Rs.57548, with a rise of 834 points, a trend of around Rs.58388.
Meanwhile, domestic rating agency ICRA Ratings has revised the growth estimate for Housing Finance Companies (HFCs) to 10-12 per cent for FY23 from an earlier projection of 9-11 per cent. It noted that the upwards revision of the growth of HFCs was in expectation of a continued improvement in disbursements. It said after witnessing disruptions in the business volumes, because of the second wave of the pandemic, the industry saw a recovery in the disbursements and HFC's portfolio growth rate started increasing during the last few quarters.
According to the report, the on-book portfolio of the Non-Banking Financial Companies-Housing Finance Companies (NBFC-HFC) sector grew to Rs 12.2 lakh crore as of March 31, 2022, registering 11 per cent year-on-year growth. The growth was slightly better than the agency's growth estimate of 8-10 per cent for FY22. This was driven by the growth in disbursements in the last three quarters of FY22 as the second wave of the pandemic had impacted the business volumes in the first quarter of FY22. The industry also saw a reduction in its Gross Non-Performing Assets (GNPAs) in the fourth quarter of FY22 after having witnessed an increase in the third quarter of same fiscal.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17474 – 17606 levels. Immediate support is placed at 17303 – 17272 levels.
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