Dear Trader…
Indian equity benchmarks closed on a high note on Friday, the last trading session of calendar year 2021, led by gains in metal and consumer durables shares, even though concerns about the Omicron variant of corona virus kept investors cautious globally. Markets started day on positive note and displayed a firm trend throughout the day, as traders got some encouragement with India Ratings and Research’s (Ind-Ra) statement that higher tax and non-tax revenue collections this fiscal are expected to more than offset the shortfall in disinvestment revenue, leading to the fiscal deficit coming in at 6.6 per cent of GDP in FY22, or 20 basis points lower than the budgeted target.
Sentiments remained upbeat after India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities. Meanwhile, the finance ministry has extended the benefit of reduced performance security of 3 percent for all central government tenders/contracts issued/concluded till March 31, 2023. According to the rules, a successful bidder awarded a government contract has to deposit a performance security of 5-10 per cent of the value of the contract with the government.
Nifty futures opened at 17268.00 points against the previous close of 17267.95 and opened at a low of 17265.10 points. Nifty Future closed with an average movement of 182.90 points and a rise of around 152.05 points and 17420.00 points...!!
On the NSE, the midcap 100 index will rise 1.40% and smallcap 100 index is closing rise 1.41%. Speaking of various sectoral indices, Metal, Auto, PSU Bank, FMCG, Financial Services and Realty stocks saw heavy saw gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, February gold opened at Rs.47946, fell from a high of Rs.47974 points to a low of Rs.47795 with a rise of 44 points, a trend of around Rs.47929 and March Silver opened at Rs.62400, fell from a high of Rs.62444 points to a low of Rs.62115, with a rise of 29 points, a trend of around Rs.62189.
Meanwhile, finance ministry has extended the benefit of reduced performance security of 3 percent for all central government tenders/contracts issued/concluded till March 31, 2023. According to the rules, a successful bidder awarded a government contract has to deposit a performance security of 5-10 per cent of the value of the contract with the government.
With this relief, the industry could deploy additional resources in project execution as timely and economical project execution by industry is vital for high speed development of infrastructure as envisaged through the National Infrastructure Pipeline. The relief has benefitted industries especially in construction, manufacturing and service sectors and will enable them to respond with vigour to the demands of the government for efficient execution of the projects.
In November 2020, the finance ministry had reduced this performance security to 3 per cent for all tenders/contracts issued or concluded till December 31, 2021, in order to help commercial entities and contractors tide over the liquidity crunch post the first wave of the COVID pandemic.
Technically, the important key resistances are placed in Nifty future are at 17474 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 17505 – 17533 levels. Immediate support is placed at 17303 – 17232 levels.
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