Strong return of the bulls! Will Nifty shoot to another record high today?
Good Morning everyone, Very positive sentiments across US &European markets and not-so-great conditions in the Chinese market, leading to some more upside in Nifty? let us go ahead and understand. Don't have a trading account yet? Click here to open your account in 10 minutes and start investing in sharemarket from today.
Global Markets:
As discussed in our weekly meeting last Saturday, American markets again hit record highs on Friday after FED Reserve chairman Jerome Powell announced the tapering of economic support will be done only by end of 2021. The Dow Jones Industrial Average rose 242.68 points, or 0.69%, to 35,455.8, the S&P 500 gained 39.37 points, or 0.88%, to 4,509.37 and the Nasdaq Composite added 183.69 points, or 1.23%, to 15,129.50.
The US economic recovery is on track to return to a strong labor market, and the central bank could begin to withdraw its stimulus measures by year-end, Federal Reserve Chair Jerome Powell said Friday. But the Fed leader stressed that there was no hurry to raise the benchmark lending rate in response to temporary inflation pressures.
Asian markets started the week higher and the dollar was not far off two-week lows after Powell struck a more dovish tone than some investors expected in his long-awaited speech. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.32 percent, and Japan's Nikkei edged up 0.9 percent.
Indian Market:
Trends on the SGX Nifty indicate a huge gap up opening at around 16800 which could see some more profit booking at higher levels. However, if the levels are sustained after profit booking, we could see the Nifty closing at another all-time high.
Foreign direct investment (FDI) into the country rose by more than twofold to $17.57 billion during April-June this fiscal on account of measures such as policy reforms and ease of doing business, an official statement said on Saturday. Total FDI inflow rose to $22.53 billion during the first three months of 2021-22 as against $11.84 billion in the same period of the last year, it said. Total FDI comprises equity inflows, reinvested earnings, and other capital.
"FDI equity inflow grew by 168 percent in the first three months of 2021-22 ($17.57 billion) compared to the year-ago period ($6.56 billion)," it said.
Bank credit grew by 6.55 percent to Rs 108.89 lakh crore and deposits by 10.58 percent to Rs 155.70 lakh crore in the fortnight ended August 13, 2021, RBI data showed. In the year-ago fortnight ended at August 14, 2020, bank advances had stood at Rs 102.19 lakh crore and deposits at Rs 140.80 lakh crore, according to RBI's Scheduled Banks' Statement of Position in India as of July 30, 2021, released on Friday.
The market capitalization of BSE-listed companies jumped to an all-time high of Rs 2,43,73,800.36 crore on Friday, driven by an upbeat sentiment in equities. Investors have gained Rs 2,20,292.05 crore in two days of the market rally.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 778.75 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,646.19 crore in the Indian equity market on August 27
Stock Specific News:
Bharti Airtel | The telco’s board approved raising capital up to Rs 21,000 crore via a rights issue of equity shares at Rs 535 each.
Mahindra & Mahindra | The Ministry of Defence (MoD) has awarded a major contract to Mahindra Defence Systems worth Rs 1,349.95 crore for the manufacturing of Integrated Anti-Submarine Warfare Defence Suite (IADS) for modern warships of the Indian Navy.
Aviation Stocks | The Directorate General of Civil Aviation (DGCA) has extended the ban on international scheduled commercial passenger flights to and from India until September 30.
Vedanta | The company’s board will meet on September 1 to consider and approve the first interim dividend.
AU Small Finance Bank | The company’s board has appointed Deepak Jain, who is currently serving as Chief Operating Officer and Key Management Personnel, as Chief Risk Officer of the bank for a period of 3 years, with effect from September 1, 2021. Deepak Jain will replace Alok Gupta, who has resigned for personal reasons.
Inox Leisure | The company has commenced the commercial operations of multiplex cinema theatre taken on lease basis located at Jaipur, Rajasthan.
Nazara Technologies | The company will acquire a 100 percent stake in OpenPlay Technologies from Sreeram Reddy Vanga and Unnati Management Consultants LLP for Rs 186.41 crore, in one or more tranches.
Dalmia Bharat | The company’s subsidiary Dalmia Cement (Bharat) has signed three Memorandum of Understandings with the Government of Jharkhand to invest Rs 758 crore in the state.
Tinplate Company of India | The company approved an expansion plan, investing in putting up an additional capacity of 3,00,000 tonnes per annum at Jamshedpur. The project is expected to be completed in about 3 years.
GOCL Corporation | The company has entered into an agreement with Squarespace Infra City for the sale of 44.25 acres of land at Kukatpally, Hyderabad, for Rs 451.79 crore. The remaining land of about 32.09 acres will continue under the Joint Development Agreement with Hinduja Estates (HEPL) for development based on approvals.
SRF | Gujarat Pollution Control Board (GPCB) has issued a revocation order under the Air (Prevention and Control of Pollution) Act, 1981 for resumption of operations in P2 and the two other allied plants with immediate effect.
Greenlam Industries | The company will acquire a 100 percent stake in HG Industries.
Punjab National Bank | The government has extended the term of office of Shri Sanjay Kumar, Executive Director of the bank, for a period beyond September 19, 2021, and also extended CH.S.S. Mallikarjuna Rao, Managing Director & Chief Executive Officer of the bank for a period beyond September 18, 2021.
Dalmia Bharat | Subsidiary Dalmia Cement (Bharat) signed three Memorandum of Understandings with the Government of Jharkhand to invest Rs 758 crore in the state.
Hatsun Agro Products | CRISIL has revised the outlook on the long-term bank facilities of the company from 'stable' to 'positive' while reaffirming the long-term rating at 'A+' and short-term rating at 'A1'.
UCO Bank | Government extended the term of office of Atul Kumar Goel as Managing Director and Chief Executive Officer of the bank for a period of two years. Manaksia Steels: Investor Ekta Halwasiya added additional 3,34,626 equity shares in the company at Rs 38.63 per share on the NSE, the bulk deals data showed.