Opening Bell News

Opening Bell

Date Heading Details
03-Aug-2021   08:38 Hrs IST Domestic indices likely to make negative opening on Tuesday <p align="justify">Indian markets ended higher on Monday led by gains in auto, IT and realty stocks amid positive global cues. Today, domestic indices are staring at a negative opening following weakness in global peers. There will be some cautiousness as a periodic labour force survey by the National Statistical Office (NSO) showed that unemployment rate rose to 13.3 per cent in July-September 2020 as compared to 8.4 per cent in the year-ago period. Joblessness or unemployment rate (UR) is defined as the percentage of unemployed persons in the labour force. The UR was 20.9 per cent in April-June 2020, the eighth Periodic Labour Force Survey (PLFS) showed. However, some respite may come as preliminary data released by the commerce and industry ministry showed merchandise exports grew 48 per cent YoY in July to $35.17 billion on account of a rise in global orders in shipments of petroleum products, engineering products, gems and jewellery segments. On a sequential basis, outbound shipments witnessed an 8 per cent jump and grew over 34 per cent as compared to July 2019. Also, a private report stated that Bharat Biotech's Covaxin is effective against the Delta and Delta plus variants. Weekly indicators of economic activity in India are showing signs of improvement as new Covid-19 cases increase. Metal stocks will be in focus as the country's steel output took a hit during the April-June period of 2021 due to the emergence of the second wave of Covid-19 pandemic. Union Steel Minister Ram Chandra Prasad Singh said during the second wave of pandemic, the public and private sector steel plants together supplied 2,30,262 tonnes of liquid medical oxygen (LMO) between April 1 to July 25, 2021. There will be lots of important earnings announcements too, to keep the markets in action. Meanwhile, riding on huge investor interest in the healthcare sector, five pharma companies are tapping the initial public offering (IPO) market over the next couple of weeks to raise over Rs 8,000 crore. The list includes the Rs 4,000-crore IPO by the Bain Capital-backed Emcure Pharma, the Rs 1,500-crore issue by Vijaya Diagnostic Centre, diagnostic firms Krsnaa Diagnostics (Rs 1,200 crore) and Supriya Lifesciences (Rs 1,200 crore), and Windlass Biotech's Rs 400 crore issue.</p><p align="justify">The US markets ended mostly lower on Monday on concerns about the Delta variant of the coronavirus. Asian markets are trading mostly in red on Tuesday ahead of the Reserve Bank of Australia's latest interest rate decision.</p><p align="justify">Back home, Indian equity benchmarks closed with gains of over half percent on Monday paced by strong buying interest in index heavyweights Titan Company, Mahindra &amp; Mahindra and Reliance Industries. Strong trend in other global markets also added to bullish sentiment. Benchmarks opened a day with good gap and managed to hold bullish stream throughout day, as Goods and Services Tax (GST) mop-up grew 33 percent year-on-year in July to over Rs 1.16 lakh crore, indicating that the economy is recovering at a fast pace. This is the second highest collection so far this fiscal after a record Rs 1.41 lakh crore mop-up in April. Sentiments got the boost as the growth of eight core infrastructure industries grew by 8.9 percent in June 2021 as compared to same month last year, mainly due to a low base effect and uptick in production of natural gas, steel, coal and electricity. Some support also came with commerce Minister Piyush Goyal's statement that India and the US are 'natural partners' and services trade will play a critical role in ever-expanding business ties. The minister also said that the services sector holds a lot of promise in aiding India's economic recovery in the post Covid period. Markets sentiment remained bullish in the afternoon session after India's manufacturing sector activities witnessed the strongest rate of growth in three months in July amid improved demand conditions and easing of some local COVID-19 restrictions. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months. Traders also remained optimistic after India's unemployment rate fell to a four-month low of 6.95% in July, staging a near-complete recovery in all parameters of the labour markets, which were hit by the second wave of the pandemic. The labour participation rate, unemployment rate and employment rate have all bounced back to close to their March 2021 levels. Meanwhile, data released by the Controller General of Accounts (CGA) showed that the central government's fiscal deficit stood at Rs 2.74 trillion or 18.2 per cent of the full year's Budget estimate at the end of June. The fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-2 at Rs 6.62 trillion, after a fall in tax receipts due to pandemic lockdown that led to the worst recession in seven decades. Finally, the BSE Sensex rose 363.79 points or 0.69% to 52,950.63, while the CNX Nifty was up by 122.10 points or 0.77% to 15,885.15.<br></p>
02-Aug-2021   08:44 Hrs IST Markets likely to start new month on firm note <p align="justify">Indian markets gave up early gains to end on a flat note Friday, tracking weak cues from Asia and Europe. Today, the start of new week as well as month is likely to be firm tracking Asian peers. Investors will be closely watching the Reserve Bank of India's Monetary Policy Committee meeting scheduled for later this week. Also, the Manufacturing PMI is slated to be out later in the day. Traders will be taking encouragement as the goods and services tax (GST) collection recovered to a three-month high in July, exceeding the Rs 1.1 trillion-mark, as economic activity resumed after most states eased Covid-19 restrictions. Some support will come as the government data showed that the output of eight core sectors grew 8.9 per cent in June, mainly due to a low base effect and uptick in production of natural gas, steel, coal and electricity. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 12.4 per cent in June 2020 due to the lockdown restrictions imposed to control the spread of coronavirus infections. However, there may be some cautiousness as foreign portfolio investors (FPIs) pulled out a net Rs 6,105 crore from the Indian capital markets so far in the ongoing financial year amid the pandemic and resultant restrictions in many parts of the country. Meanwhile, data released by the Controller General of Accounts (CGA) showed that the central government's fiscal deficit stood at Rs 2.74 trillion or 18.2 per cent of the full year's Budget estimate at the end of June. The fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-2 at Rs 6.62 trillion, after a fall in tax receipts due to pandemic lockdown that led to the worst recession in seven decades. There will be some buzz in the power stocks with power ministry data showing that India's power consumption grew nearly 12 per cent in July to 125.51 billion units (BU) and returned to pre-pandemic level mainly due to easing of lockdown curbs and delayed monsoon. Auto stocks will be in limelight reacting to their monthly sales numbers.&nbsp; There will be some reaction in insurance industry stocks as the government said there has been no noticeable change in insurance coverage in the country during the COVID-19 pandemic. IPO rush continues for domestic investors with four fresh offerings opening for subscription this week. Windlas Biotech, Krsnaa Diagnostics, Exxaro Tiles, and Devyani Internation will all open for subscription on August 4.</p><p align="justify">The US markets ended in red on Friday as Amazon.com shares dropped after the company forecast lower sales growth. Asian markets are trading mostly in green on Monday as upbeat economic data in the United States and Europe and solid corporate earnings put a floor under their markets, even though Beijing's regulatory crackdown fans fears about China's economy.</p><p align="justify">Back home, Indian equity benchmarks trimmed all gains ahead of the closing bell on Friday to end the day flat with negative bias, tracking losses in Metal, Energy and Banking stocks. Benchmarks made positive start and managed to keep heads in green terrain, as traders took some support with India Ratings and Research's statement that outbound shipments from India, which have been languishing for quite some time, can benefit from the favourable trade growth outlook of 2021 and consolidate further from the level achieved in the first quarter of this fiscal. Some optimism also came in as Chief Economic Advisor K V Subramanian said headline inflation will come down under the 6 percent mark in July itself but will stay at an elevated level of over 5 percent for some time. Sentiments remained positive with Union Housing and Urban Affairs Ministry Secretary Durga Shanker Mishra's statement that the real estate sector which has been stressed for quite some time now has started showing signs of improvement since the first quarter of the current fiscal (Q1FY22) and its contribution to the country's Gross domestic product (GDP) is expected to reach 10 percent by 2025 from the current 7 percent. Markets added some more points in late afternoon session taking support from private report stated that the easing of restrictions on economic activity coupled with the increasing focus on ramping up operations and sales by businesses is having a positive impact on the hiring of freshers. However, key indices erased gains in the last 30 minutes of trade taking cues from weak European markets. Some concern also came as 3 southern states report spike in new infections. Kerala reported more than 22,000 fresh Covid-19 cases for the third day straight: the spike prompting the state to announce a weekend lockdown. Karnataka and Tamil Nadu recorded a rise in new infections on Thursday as well, taking India's daily case count to nearly 45,000, the highest in 22 days. Meanwhile, Parliament informed that around 1.09 crore MSME borrowers have been provided with guarantee support of Rs 1.65 lakh crore under Emergency Credit Line Guarantee Scheme (ECLGS). Finally, the BSE Sensex fell 66.23 points or 0.13% to 52,586.84, while the CNX Nifty was down by 15.40 points or 0.10% to 15,763.05.<br></p>
30-Jul-2021   08:50 Hrs IST Markets likely to open lower following losses in Asian peers
29-Jul-2021   08:41 Hrs IST Benchmarks likely to make positive start of F&O series expiry session
28-Jul-2021   08:35 Hrs IST Markets likely to get cautious start amid weak global cues
27-Jul-2021   08:36 Hrs IST Markets likely to open in green on Tuesday
26-Jul-2021   08:37 Hrs IST Markets likely to start new week on pessimistic note
23-Jul-2021   08:33 Hrs IST Markets likely to get cautious start; Zomato to list on exchanges
22-Jul-2021   08:36 Hrs IST Domestic indices likely to open in green on Thursday
20-Jul-2021   08:36 Hrs IST Markets likely to extend previous session's losses with negative start