RBI drafts new rules to ease export and import procedures : Daily Market Update -3 July 2024 | Globe Capital Market LTD.
RBI drafts new rules to ease export and import procedures : Daily Market Update -3 July 2024

The RBI on Tuesday proposed rationalising regulations that cover export and import transactions with an aim to promote ease of doing business and empower banks to provide more efficient service to their foreign exchange customers. As per the draft, every exporter should furnish to the specified authority a declaration specifying the amount representing the full export value of the goods or services.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.4% to 0.85%.
  • European equity markets settled lower in range 0.30% to 0.70%.
  • Asian equity markets are trading higher.
  • GIFT Nifty is  up by 80 points, Nifty futures likely to open around 24350 levels (as on 8:20AM).


News highlights from across the globe

  • Asia-Pacific markets are trading higher after the Federal Reserve Chair Jerome Powell indicated that the US is returning to a disinflationary trajectory. This affirmed hopes of monetary easing in the world’s largest economy.
  • Powell’s remarks came at a time when US Job Opening and Labor Turnover Survey showed new jobs increased in May, showcasing underlying strength of the labour market.
  • Brent crude rose 0.27% higher at $86.47 a barrel.


Important news updates from the domestic front

  • HDFC Bank has reported a reduction in foreign institutional investors’ shareholding to 54.83% in the June 2024 quarter, down from 55.54% in the previous quarter. This change aligns with the MSCI Index’s requirement of keeping FII shareholding below 55.5%.
  • M&M Finance reported disbursements up 5% year-on-year at Rs 12,730 crore for the end of Q1 FY25 and Business assets up 4% QoQ at Rs 1.06 lakh crore. Collection efficiency for the end of Q1 stood at 94%.
  • Yes Bank reported loans and advances up 14.8% year-on-year at Rs 2.29 lakh crore, deposits up 20.8% year-on-year at Rs 2.64 lakh crore for the end of Q1 FY25. CASA ratio at 30.7% vs 30.9% QoQ.
  • IEX reported total volume up 21% year-on-year at 30,354 MU, Real-time electricity market volume up 26.8% year-on-year at 9,193 MU, and green market segment volumes up 94.3% year-on-year at 1,768 MU for the end of Q1 FY25.
  • NTPC reported power generation up 9.5% year-on-year at 113.87 BU, and coal stations recorded a plant load factor of 79.5% at the end of Q1 FY 25.
  • Hindustan Zinc reported a 2% year-on-year increase in Mined metal production at 263 kt, Saleable metal output up 1% at 262 kt YoY, and silver output down 7% at 167 tonnes YoY.
  • Britannia Industries appointed former RBI Governor Urjit Patel as an independent director for 5 years effective July 2.
  • Zomato Financial Services will withdraw the RBI application for getting registered as an NBFC. The company does not want to pursue the lending/credit business anymore.


Nifty Overview & Outlook

The Nifty benchmark index started the day at all-time highs driven by strong opening in leading IT stocks following bullish comments from Investment Bank Nomura. However, the index failed to sustain its gains in the wake of weakness in banking stocks, particularly in PSU Banks. Consequently, the Nifty closed flattish, while the Bank Nifty ended 0.8% lower.

In the broader market, the Smallcap index also finished unchanged, whereas the Midcap index underperformed and declined by 0.6%.

Sector-wise, Nifty IT and Nifty Media yet again cushioned the market sentiment, rising by 1.2% and 1% respectively. Conversely, Nifty PSU Banks saw significant weakness with a decline of 1.8%, while the Nifty Private Banking Index followed with a 0.9% drop. Market breadth within the Nifty 500 index weakened again, with 202 stocks advancing and 296 declining.

Technically, although Nifty opened with a gap-up, it quickly retraced from its early highs, leading to intraday corrections and volatility. The index ultimately closed flat. Our immediate resistance levels remain at 24,470 and 24,750, while support levels have been adjusted slightly higher to 24,030 and 23,790 in case of a correction.


Derivatives Overview & Outlook

Yesterday, Nifty futures remained almost unchanged on price as well as on open interest front, whereas Banknifty and Finnifty futures shed around 2.5% and 4.5% of open interest respectively as long unwinding.

All F&O sectors, barring Realty and Technology settled lower. Amongst them, Capital Goods, Chemical and Metal stocks witnessed maximum addition of short positions.

On option front, put writing along with call writing was seen at multiple strikes and maximum positions are at 25000 CE followed by 24500 CE and 24000 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2000 Cr in the cash segment, sold index futures worth Rs 237 Cr and also sold stocks futures worth Rs 5071 Cr. DIIs were net buyer in the cash segment to the tune of Rs 648 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 24280-24350; Supports 24120-24020

Banknifty – Resistances 52600-52800; Supports 52200-52000

Finnifty – Resistances 23700-23800; Supports 23500-23300


Security in Ban Today: INDIACEM, INDUSTOWER


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