The market is likely to open flat today as the GIFT Nifty indicates a muted start for the broader index, with a loss of 8 points after opening the session at 19,529.
On July 11, the Sensex gained 273 points to end at 65,617.84. Nifty gained 83.50 points to close at 19,439.40.
The pivot point calculator suggests that the Nifty may get support at 19,412, followed by 19,386 and 19,345, whereas in the case of an upside, 19,495 can be a key resistance area followed by 19,521 and 19,562.
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 flat start for the broader index with a loss of 8 points on Wednesday. The futures stood at 19,529.
US Markets
US stocks gained on Tuesday, helped by optimism ahead of key inflation reports and as JPMorgan and other financial shares gained before earnings later this week.
Investors are looking for further clues on whether price pressures are abating and if the Federal Reserve is nearing the end of its interest rate hiking cycle.
US consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Several Fed officials said this week the central bank would likely need to raise rates further to curb inflation but that the end of its tightening cycle was getting close.
JPMorgan Chase & Co shares advanced 1.6 percent after Jefferies upgraded the stock to a 'buy' ahead of the bank's quarterly results due on Friday.
Reports from JPMorgan and other big banks later this week are expected to unofficially kick off the start of the second-quarter reporting period. The S&P banking index rose 1.5 percent.
Energy shares also jumped along with sharply higher oil prices.
The Dow Jones Industrial Average rose 317.02 points, or 0.93 percent, to 34,261.42, the S&P 500 gained 29.73 points, or 0.67 percent, to 4,439.26 and the Nasdaq Composite added 75.22 points, or 0.55 percent, to 13,760.70.
Asian Markets
Asia-Pacific markets were mostly higher ahead of key inflation data out of India and the US on Wednesday.
Economists expect the US inflation rate for June to fall slightly to 5 percent, down from 5.3 percent in May, based on a Reuters poll. The inflation print, along with producer prices data on Thursday, will give clues to the Federal Reserve’s path for rate hikes.
Australia’s S&P/ASX 200 gained 0.65 percent and led benchmark indexes in the region.
In Japan, the Nikkei 225 extended its Tuesday gains and climbed 0.14 percent, while the Topix was up 0.6 percent.
European Markets
European markets ended the day on a high note Tuesday, with investors looking ahead to key US inflation figures later this week.
The pan-European Stoxx 600 finished 0.7 percent higher, as almost all sectors nudged into positive territory. Construction and material stocks added 1.76 percent, while health care stocks dipped 0.12 percent.
HCL Technologies Q1 preview: Net profit likely to decline sequentially
HCL Technologies is expected to report a net profit of Rs 3,782 crore in Q1FY24, according to average of the estimates by Philip Capital, Nirmal Bang, AMP, and HDFC Securities. This is a 5.3 percent decline quarter-on-quarter, and a 8.1 percent increase year-on-year.
Dollar revenues are expected to be around $3,268 million in the April to June quarter, a 0.8 percent growth sequentially and a 7.8 percent growth year-on-year.
Revenue (in Rupees) for the tech company is estimated to be around Rs 26,858 crore in Q1FY24, a 0.4 percent increase quarter-on-quarter and 13.8 percent increase year-on-year in the company’s revenue numbers, according to a mean consensus of the above four brokerage firms.
Utkarsh Small Finance Bank IPO opens today
The initial public offer of Utkarsh Small Finance Bank is set to open on July 12 and bidding will close on July 14. The anchor book, the part of qualified institutional buyers, was opened on July 11.
The small finance bank has set the price band for its issue at Rs 23-25 per share.
The bank plans to raise Rs 500 crore from its offering that comprises only fresh issue portion.
Utkarsh Small Finance Bank will utilise net issue proceeds for augmenting its Tier - 1 capital base to meet its future capital requirements, besides issue expenses.
Investors can bid for a minimum of 600 equity shares and in multiples of 600 shares thereafter. Hence, the minimum investment by retail investors in the public issue would be Rs 15,000 for one lot and the maximum investment would be Rs 1.95 lakh for 13 lots.
Declining Dollar
The dollar sank to a two-month low against its major peers on Wednesday in the lead-up to a key US inflation reading, while sterling scaled a 15-month top on expectations the Bank of England (BoE) has further to go in raising rates.
US inflation data is due later on Wednesday, with expectations core consumer prices jumped 5 percent on an annual basis in June. The figures should also provide further clarity on the Federal Reserve's progress in its fight against inflation.
Ahead of the release, the US Dollar fell to a two-month low of 101.45 against a basket of currencies , extending its losses from the start of the week after Fed officials said the central bank was nearing the end of its current monetary policy tightening cycle.
The euro gained 0.07 percent to $1.1018, flirting near Tuesday's two-month high of $1.1027.
Steady Crude Price
Oil prices were largely unchanged in early Asian trade on Wednesday as hopes for higher demand in the developing world and supply cuts by the world's biggest oil exporters offset fears of an economic downturn driving up US crude stockpiles.
Brent futures slipped 4 cents, to $79.36 a barrel by 0015 GMT while U.S. West Texas Intermediate (WTI) crude fell 1 cent to settle at $74.82.
FII and DII data
Foreign institutional investors (FII) bought shares worth Rs 1,197.38 crore, whereas domestic institutional investors (DII) sold shares worth Rs 7.25 crore on July 11, provisional data from the National Stock Exchange (NSE) shows.
Stocks under F&O ban on NSE
The NSE has added Manappuram Finance to its F&O ban list for July 12, while retaining BHEL, Delta Corp, Granules India, Indiabulls Housing Finance, India Cements, Punjab National Bank, and Zee Entertainment Enterprises. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies.
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