Daily Market Commentary - July 2, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Friday Indian equity benchmarks made a slightly positive start but failed to hold the gains and slipped below neutral lines. Markets are trading lower with marginal cuts in early deals due to selling in Power, Utilities and TECK stocks. Initially, some support came in as the India Meteorological Department (IMD) said Southwest Monsoon over the country is likely to be normal in July. In the afternoon session, Indian equity benchmarks erase all the losses and turn positive. Both Sensex and Nifty are trading around 52,450 and 15,699 levels.

Asian equity benchmarks traded mixed in early deals on Friday, as the investors sidelined ahead to the US Jobs report and on worries over acceleration in the delta variant of the coronavirus cases and travel curbs in several countries.

The Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) has said that the gross non-performing assets (GNPAs) ratio of banks may increase to 9.8 percent by March 2022 from 7.48 percent in March 2021 under a baseline scenario. Under a severe stress scenario, the GNPA of banks may increase to 11.22 percent.

In Nifty 50 top gainers Divi's Laboratories Ltd, ICICI Bank Ltd, Adani Ports and Special Economic Zone Ltd, Reliance Industries Ltd and Coal India Ltd. The losers are Tata Steel Ltd, Britannia Industries Ltd, JSW Steel Ltd, Power Grid Corporation Of India Ltd and Hindalco Industries Ltd.

Source : Equity Bulls

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