Equity benchmark indices Sensex and Nifty are expected to open marginally higher on August 7 as trends in the GIFT Nifty indicate a mildly positive start for the broader index with a gain of 43 points.
The BSE Sensex gained 480 points to close the previous session at 65,721 points, while the Nifty50 closed 135 points higher at 19,517 points trading comfortably higher than its 200-day moving average of 19,564 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,458, followed by 19,434 and 19,395. In case of an upside, 19,537 can be the key resistance, followed by 19,561 and 19,600.
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 positive start for the broader index with a gain of 43 points after Nifty closed 135 points higher at 19,517 points on August 4. GIFT Nifty futures stood at 19,605 points.
Trade setup for Monday: Top 15 things to know before the opening bell
US Markets
Stock futures rose modestly on Sunday night as investors readied for a week with more corporate earnings and key inflation readings. Futures tied to the Dow Jones Industrial Average added 35 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures advanced around 0.2% and 0.3%, respectively.
The moves follow a losing week on Wall Street. The Nasdaq Composite and S&P 500 slid about 2.9% and 2.3%, respectively, marking their worst weeks since March. The Dow finished the week about 1.1% lower.
Investors will watch on Monday for corporate earnings from companies such as Lucid, Palantir, Beyond Meat, and Paramount. It’s the latest leg of what has broadly been considered a better-than-expected season. Of the 84% of companies in the S&P 500 that have posted their quarterly results, about four-fifths have exceeded Wall Street forecasts, according to FactSet.
Later in the week, investors will shift focus to the release of July consumer and producer price index data. Both are closely watched given their connection to the path of inflation and the health of the economy.
European Markets
European markets were slightly higher Friday to close off a downbeat week, as investors digested corporate earnings and the Bank of England’s latest rate hike. The pan-European Stoxx 600 provisionally closed 0.3% higher, with major bourses and most sectors in positive territory. Overall, the benchmark index fell 2.7% this week, according to Refinitiv data.
Travel and leisure stocks led gains on Friday, up 1.7%, while food and beverages stocks dropped 0.6%. The Bank of England raised its main interest rate by 25 basis points to a 15-year high of 5.25%, as policymakers try to tackle stubbornly high inflation.
Investors are also analysing a series European banking results and major U.S. employment data, which showed job growth in July was less than expected, indicating slower economic growth. FTSE closed 0.47 percent higher at 7,564 points and DAX closed 0.37 percent higher at 15,951 points on Friday.
Asian Markets
Asia-Pacific markets fell as investors look ahead to China’s inflation figures and trade balance later this week. China will release its trade balance for Tuesday and inflation data on Wednesday, which will give clues to the country’s recovery trajectory.
On Monday, Thailand releases its inflation data for July and Indonesia reports its second quarter growth data. Japan’s Nikkei 225 slumped 1% on its open, while the Topix fell 0.52%. Japan’s central bank will release its summary of opinions for its July 28 meeting, where it adjusted its stance on its yield curve control policy.
In Australia, the S&P/ASX 200 slid 0.25%, while South Korea’s Kospi was down 0.16% and the Kosdaq dropped 0.78%. Hong Kong’s Hang Seng index is also set to fall, with futures at 19,470, compared to the HSI’s close of 19,539.46.
Reliance seeks shareholder nod to appoint Mukesh Ambani as head for another 5 years at nil salary
Reliance Industries Ltd, India's most valuable company, has sought shareholder's approval to give Mukesh Ambani another five-year term as chairman and managing director of the company till 2029 — a period during which he has opted to draw nil salary. Ambani, 66, will cross the company law-mandated 70 years age for the chief executive of the company and requires a special resolution by the shareholders for him to be appointed beyond that age bar.
In a special resolution, Reliance sought the nod of shareholders to appoint Ambani as the head of the company till April 2029. Ambani has been on the board of Reliance since 1977 and was elevated as chairman of the company after the death of his father and group patriarch Dhiburhai Ambani in July 2002.
Mcap of seven of top-10 most valued firms erode by Rs 1 lakh crore; State Bank biggest laggard
The combined market valuation of seven of the top-10 most valued firms eroded by Rs 1,09,947.86 crore last week, with State Bank of India taking the biggest hit, in-tandem with weak trend in equities.
Last week, the BSE benchmark fell by 438.95 points or 0.66 per cent. From the top-10 pack, Reliance Industries, ICICI Bank, Hindustan Unilever, ITC, State Bank of India, Bharti Airtel, and Bajaj Finance were the laggards while Tata Consultancy Services (TCS), HDFC Bank, and Infosys witnessed addition in their market valuation. The valuation of State Bank of India tumbled Rs 38,197.34 crore to Rs 5,11,603.38 crore.
Jio Financial Services to play crucial role in transforming India's digital finance landscape: Mukesh Ambani
Jio Financial Services is positioned uniquely to capture the growth opportunities in financial services sector and play a crucial role in transforming the landscape of digital finance in India, said Reliance Industries' Chairman and Managing Director Mukesh Ambani in his message to shareholders in the company's 2022-2023 annual report.
As per the annual report 2022-23, the equity shares of Reliance Strategic Investments Limited (RSIL), which will be renamed as Jio Financial Services Limited, are expected to be listed soon.
"Jio Financial Services Limited along with its subsidiaries will leverage the technological capabilities of Reliance and digitally deliver financial services, democratising access to financial services offerings for Indian citizens," Ambani said in his message to shareholders. Jio Financial Services aims to provide simple, affordable and innovative digital first solutions," Ambani added.
Reliance announced in October 2022 that it would demerge and list its financial services business - Reliance Strategic Investments - which will be renamed Jio Financial Services (JFS).
Will Yatharth Hospital debut with decent double-digit premium today?
Yatharth Hospital & Trauma Care Services is likely to debut with a decent double-digit premium of at least 20 percent over the issue price of Rs 300 per share, owing to strong subscription figures. This is attributed to the hospital chain's position as a prominent super specialty provider in Delhi NCR, boasting diverse specialties, a strong payer mix, and consistent operational and financial growth.
The Rs 687-crore public issue had seen a healthy response from investors, subscribing 36.16 times during July 26-28. Qualified institutional investors were at the forefront in terms of support to the offer, buying 85.10 times the allotted quota, followed by high net-worth individuals and retail investors who had bid 37.22 times and 8.34 times the portions set aside for them, respectively.
"Following a strong subscription to the issue, Yatharth Hospital is likely to make a decent listing on the bourses on Monday," Prathamesh Masdekar, research analyst at StoxBox said. He expects shares to list at around 20 percent premium to the issue price of Rs 300 per share on the back of focused presence in the NCR region with a diverse speciality and payer mix along with favourable sectoral tailwinds.
Oil Prices
Oil prices rose more than a dollar a barrel on Friday to record a sixth consecutive week of gains, after top producers Saudi Arabia and Russia extended supply cuts through September, adding to undersupply concerns.
Brent crude futures rose $1.10, or 1.3%, to settle at $86.24 a barrel, while the U.S. West Texas Intermediate crude gained $1.27, or 1.6%, to close at $82.82 a barrel. Both benchmarks hit their highest levels since mid-April on Friday.
Dollar Index
The Dollar index traded 0.53 percent lower in futures at 102.01, whereas the value of one dollar hovered near Rs 82.68
Gold Prices
Gold prices rose on Friday after a slightly weaker-than-expected U.S. jobs report pushed the dollar and Treasury yields lower, offering some respite to bullion which was still on track for its worst week in six.
Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department said in its closely watched employment report. Economists polled by Reuters had forecast a gain of 200,000 jobs. Spot gold was up 0.3% to $1,938.69 per ounce by 11:08 a.m. EDT (1508 GMT). Bullion, however, was down 1% so far this week. U.S. gold futures gained 0.3% to $1,974.10.
“The jobs report has allowed the market to propose that the Federal Reserve is not as likely to raise interest rates. As a result, we’ve seen bond yields drop along with the dollar and that is certainly supporting the price of gold,” said David Meger, director of metals trading at High Ridge Futures.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 556.32 crore, whereas domestic institutional investors (DII) bought Rs 366.61 crore worth of stocks on August 4, provisional data from the National Stock Exchange (NSE) showed.
With inputs from Reuters and other agencies.
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