The benchmark Sensex and Nifty indices are expected to open marginally lower on August 14 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 42 points.
The BSE Sensex lost 365 points to close the previous session at 65,322 points, while the Nifty50 closed 114 points lower at 19,428 points, trading near its 200-day moving average of 19,591 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,411, followed by 19,377 and 19,321. In case of an upside, 19,522 can be the key resistance, followed by 19,556 and 19,611.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 42 points after the Nifty closed 114 points lower at 19,428 points on August 11. GIFT Nifty futures stood at 19,449 points.
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US Markets
Stock futures gained slightly on Sunday evening as Wall Street looked to shake off a rough start to August. Futures tied to the S&P 500 ticked up 0.2 percent. Those for the Nasdaq 100 gained 0.3 percent, while Dow Jones Industrial Average futures added 0.1 percent, or 31 points.
The moves come after stocks have struggled to sustain their rally in the late summer. Last week, the S&P 500 and Nasdaq Composite fell 0.31 percent and 1.90 percent. It was the Nasdaq Composite’s first two-week losing streak of the year. The Dow Jones Industrial Average, however, gained 0.62 percent for its fourth positive week in five.
The upcoming week could be driven by insights into the state of the US consumer, with earnings reports due from Home Depot, Target and Walmart. Retail sales data from July is also due out on Tuesday morning. The earnings reports are coming after a mixed batch of inflation reports last week, which show that price increased have eased from their post-pandemic peak but are still above the Federal Reserve’s 2% target.
European Markets
European markets closed lower Friday as investors continued to digest earnings and the latest US inflation data. The pan-European Stoxx 600 index ended the session down 1.1 percent, with all sectors in negative territory. Tech stocks led losses, closing down 2.1 percent, while autos and mining stocks slid 1.8 percent and 1.7 percent, respectively.
FTSE closed 1.24 percent lower at 7,524 points and DAX closed 1.03 percent lower at 15,832 points on Friday.
Asian Markets
Asia-Pacific markets largely fell on Monday as investors look toward key data from Japan and China this week. Japan’s gross domestic product for the second quarter will be out on Tuesday, as well as its inflation print for Friday.
Japan’s Nikkei 225 fell 0.1 percent to start the week, but the Topix was up 0.12 percent. South Korea’s Kospi was down 0.3 percent, and the Kosdaq saw a larger loss of 0.85 percent, while Australia’s S&P/ASX 200 was 0.37 percent lower. China will release industrial production and retail sales for July, as well as house prices on Tuesday.
Futures for Hong Kong’s Hang Seng index stood at 18,857, pointing to a weaker open compared to compared to the HSI’s close of 19.075.19. This would be the first time in almost a month that the HSI went lower than the 19,000 mark.
MCap of seven of top 10 firms falls by Rs 74,603 crore; HDFC Bank biggest laggard
The combined market valuation of seven of the top 10 valued firms declined by Rs 74,603.06 crore last week, with HDFC Bank emerging as the biggest laggard. The BSE benchmark declined 398.6 points or 0.60 per cent last week.
ICICI Bank, Hindustan Unilever, Infosys and ITC saw erosion in their market valuation while Reliance Industries, Tata Consultancy Services (TCS) and State Bank of India added to their market valuation. The valuation of HDFC Bank declined by Rs 25,011 crore to Rs 12,22,392.26 crore.
Dalal Street Action | CPI inflation, FOMC minutes, FII Flow among 10 key factors to watch
The market corrected for the third consecutive week ended August 11, though it traded within the previous week's long range. The RBI's decision to raise its full-year inflation projection has heightened the likelihood of additional momentum in the rate-cut trajectory extending into FY25. The announcement of a 10 percent incremental Cash Reserve Ratio (CRR) for banks, coupled with lacklustre global cues and continued foreign institutional investor (FII) outflows, exerted downward pressure on market sentiment.
The market today will first react to industrial production numbers for June, while overall, the consolidation is expected to continue with a focus on monthly CPI and WPI inflation numbers, and FOMC minutes, experts said. The BSE Sensex dropped 365 points to 65,322, and the Nifty50 declined 114 points to 19,428, dented by banking & financial services, and FMCG stocks, but the buying in technology, metal, oil & gas, pharma, and select auto stocks capped downtrend.
"In the absence of any major trigger and uncertain global cues, we expect the market to consolidate in the range," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services said. He feels the market would trade cautiously ahead of India’s inflation data. On account of the Independence Day holiday on Tuesday market might remain lacklustre, he says.
Primary market action: Four IPO launches, five listings to take place this week
This truncated week is going to see a lot of action in the primary market, as four IPOs will be opening for subscription and five new firms will be added on the bourses. Polymer-based molded products maker Pyramid Technoplast is the only IPO in the mainboard, for which the bidding will start on August 18, with a price band of Rs 151-166 per share. The anchor book will be opened for a day on August 17.
The company is planning to mobilise Rs 153.05 crore via the maiden public issue, which comprises a fresh issuance of shares worth Rs 91.3 crore and an offer for sale of Rs 61.75 crore by promoter Credence Financial Consultancy LLP. The proceeds will be utilised for repaying of certain outstanding borrowings, and funding working capital requirements of the company.
Amara Raja Batteries Q1 PAT up 45.55% at Rs 192.14 crore
Amara Raja Batteries Ltd on August 12 reported a 45.55 per cent increase in consolidated profit after tax at Rs 192.14 crore in the first quarter ended June 30, 2023. The company had posted a consolidated profit after tax of Rs 132.01 crore in the same quarter last fiscal, Amara Raja Batteries Ltd (ABRL) said in a regulatory filing.
Consolidated revenue from operations was at Rs 2,795.51 crore against Rs 2,620.53 crore in the year-ago period, it added. Total expenses were higher at Rs 2,560.69 crore as compared to Rs 2,460 crore in the corresponding quarter last fiscal.
"We have witnessed significant growth in revenue and profits quarter on quarter, which is a direct testament to the customer's trust in our product's quality and reliability. With our rapid movement in the Li-ion initiatives, we are poised for a strong future," ABRL Chairman & Managing Director Jayadev Galla said.
Oil Prices
Oil prices edged higher on Friday after the International Energy Agency forecast record global demand and tightening supplies, propelling prices to the seventh straight week of gains, the longest such streak since 2022.
Brent crude futures rose 19 cents, or 0.22 percent, to settle $86.59 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 22 cents, or 0.27 percent, to settle at $83.05. On a weekly basis, both benchmarks rose about 0.5 percent. The IEA estimated that global oil demand hit a record 103 million barrels per day in June and could scale another peak this month.
Meanwhile, output cuts from Saudi Arabia and Russia set the stage for a sharp decline in inventories over the rest of 2023, which IEA said could drive oil prices even higher.
Dollar Index
The Dollar index traded 0.15 percent higher in futures at 102.96, whereas the value of one dollar hovered near Rs 82.90.
Gold Prices
Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest US inflation numbers and awaited for more economic data later in the day.
Spot gold rose just 0.05 percent to $1,912.9246 per ounce by 4:40 pm ET, after touching its lowest level since July 7 earlier. US gold futures inched down 0.18 percent to $1,945.4. Bullion has slid about 1.2 percent so far in the week as the US dollar index and benchmark 10-year Treasury bond yields were on track for their fourth consecutive weekly gain.
“Investors have been coming in at these low-1900s levels and they’ve been buyers, but equally, when gold has strengthened, they’ve been sellers. That’s helped to cap that range,” said Philip Newman, managing director of Metals Focus.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 3,073.28 crore, whereas domestic institutional investors (DII) purchased Rs 500.35 crore worth of stocks on August 11, provisional data from the National Stock Exchange (NSE) showed.
With inputs from Reuters and other agencies.
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