Dear Trader…
Indian equity benchmarks traded buoyantly and ended higher for the third consecutive day on Tuesday, taking positive cues from global markets. After making positive start, key gauges turned volatile as traders got anxious with the Centre for Monitoring Indian Economy (CMIE) in its latest data has showed that the unemployment rate in the country touched a four-month high of 7.91 percent in December 2021.
Key gauges extended gains in late afternoon session, as traders remain energized with a another private report stating that export-dependent software companies are set to report a strong sequential revenue growth in the range of 2.6 to 6 per cent in the seasonally weak December quarter. Some optimism also came with Union Commerce and Industry Minister Piyush Goyal’s statement that the Omicron variant of COVID-19 will be a short-term disruption on businesses, adding that supply chains and industrial activities will continue at full speed.
Nifty futures opened at 17730.00 points against the previous close of 17677.95 and opened at a low of 17632.40 points. Nifty Future closed with an average movement of 238.40 points and a rise of around 177.20 points and 17855.15 points...!!
On the NSE, the midcap 100 index will rise 0.27% and smallcap 100 index is closing rise 0.32%. Speaking of various sectoral indices only Pharma, Realty and Metal stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.47810, fell from a high of Rs.47897 points to a low of Rs.47740 with a rise of 119 points, a trend of around Rs.47835 and March Silver opened at Rs.61670, fell from a high of Rs.61934 points to a low of Rs.61640, with a rise of 149 points, a trend of around Rs.61890.
Meanwhile, rating agency ICRA Ratings in its latest report has said that the assets under management (AUM) of the small finance banks (SFBs) are expected to register a marginal improvement in the growth rate to around 20 per cent in FY2022 compared to the growth rate of 18 per cent witnessed in FY2021, though the same would be lower compared to the compound annual growth rate (CAGR) of around 30 per cent during FY2016-FY2020.
It stated growth in assets under management of Indian small finance banks is likely to show improvement in the current financial year although elevated credit costs may eat into profitability. It mentioned that amid the second wave of the pandemic, SFBs witnessed a decline in collections and, hence weakening of the quality metrics with reported gross non-performing assets (GNPAs) of 6.4 per cent as of September 30, 2021.
The agency's Vice-President and Sector Head (Financial Sector Ratings) Sachin Sachdeva said the AUM growth of SFBs declined during H1 FY 2022 after the disbursements got impacted in Q1 FY 2022 due to the second wave of the pandemic. The industry is estimated to have reported an annualised growth rate of 7-8 per cent in H1 FY2022. He added ‘Nevertheless, since disbursements have started picking up, we expect the pace of growth to improve in H2 FY 2022, pushing the full-year AUM growth to around 20 per cent, though the same would be subject to no major impact from the recent rise in coronavirus infections.’
Technically, the important key resistances are placed in Nifty future are at 17909 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 17939 – 17970 levels. Immediate support is placed at 17808 – 17787 levels.
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