IGI Logo

Indian markets ended higher Thursday led by strong gains across the board amid positive global cues. Today, the markets are likely to make cautious start amid mixed global cues. Some support will come as Information and Broadcasting Minister Anurag Thakur said the Union Cabinet has approved Rs 6,322-crore production linked incentive scheme for specialty steel, a move aimed at boosting domestic manufacturing and exports from the sector. However, traders will be concerned as former World Bank chief economist Kaushik Basu said India's wholesale price-based inflation is at a 30-year high, leading to a very alarming situation for the country. He, however, doesn't see any risk of hyperinflation, but cautioned that if retail inflation follows wholesale prices, it might lead to an inflationary crisis. There will be some cautiousness as the US has said India remains a challenging place to do business, and urged it to foster an attractive and reliable investment climate by reducing barriers to investment and minimising the bureaucratic hurdles. Telecom stocks, namely Bharti Airtel, Vodafone Idea and Tata Tele will be in limelight amid reports that the Supreme Court will pronounce its judgment on appeal for correction of errors in Adjusted Gross Revenue (AGR) calculation on July 23. Infrastructure industry related stocks will be in focus amid report that the Road Transport and Highways ministry has constructed 13,327 km of National Highways in 2020-21, which works out to about 37 km per day. Zomato will list its shares on the exchanges today ahead of its scheduled date of July 27. The issue price has been fixed at Rs 76 per share. The Rs 9,375-crore initial public offering (IPO) of Zomato received a stellar response from investors as it was subscribed 38.25 times during July 14-16. There will be some important result reactions too, to keep the markets in action.

The US markets ended higher on Thursday as investors digested negative economic data reflecting the country’s struggle to move past the COVID-19 pandemic. Asian markets are trading mostly lower on Friday as investors monitor Chinese tech stocks in Hong Kong after regulatory concerns resurfaced.

Back home, Bulls make strong comeback on Dalal Street on Thursday snapping three days losing streak as traders opted bargain hunting in blue chip stocks. Markets started the day with jubilation and key gauges breaches their crucial levels one after other as signs of a strong corporate earnings season and expectations that the central banks will stick to a dovish stance, at least in the near-term, lifted demand for risky equities. Sentiments remained optimistic through the day with report that Finance Minister Nirmala Sitharaman has sought Parliament nod to spend a net additional Rs 23,675 crore, including Rs 17,000 crore for the health ministry, in the current financial year. As per the first batch of supplementary demands for grants tabled in the Lok Sabha by Sitharaman, although the gross additional expenditure is over Rs 1.87 trillion in 2021-22, the actual cash outgo will only be Rs 23,674.81 crore as the remaining spending will be met through savings and higher receipts and recoveries. Markets extended gains in last leg of trade as traders took note of report that in order to bring more discipline, transparency, and accountability into the corporate insolvency process, resolution professionals (RPs) will be required to inform the adjudicating authority about avoidance transactions of a corporate debtor, according to the amended Insolvency and Bankruptcy Board of India (IBBI) Regulations, 2016. Market participants overlooked report that increasing commodity prices forced the government’s crude oil import bill to swell by a massive 190.6% on-year basis in the first quarter to reach $24.7 billion. India’s crude oil import value during the quarter stood at 51 million tonne, up 14.7% from the previous year. Finally, the BSE Sensex rose 638.70 points or 1.22% to 52,837.21, while the CNX Nifty was up by 191.95 points or 1.23% to 15,824.05.

Above views are of the author and not of the website kindly read disclaimer