The market is expected to open in the green as trends in the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 101 points.
The BSE Sensex gained 427 points to close at 54,178, while the Nifty50 climbed 143 points to 16,133, forming a Doji kind of indecisive pattern on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 16,069, followed by 16,005. If the index moves up, the key resistance levels to watch out for are 16,174 and 16,214.
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:
Wall Street benchmarks ended up on Thursday, with the S&P 500 and Nasdaq recording their fourth successive higher closes, as traders leaned in to US equities after the Federal Reserve hinted at a more tempered program of interest rate hikes. US stock markets have stabilised in July after a brutal selloff in the first half against the backdrop of a surge in inflation, the Ukraine conflict and the Fed's pivot away from easy-money policy.
The Dow Jones Industrial Average rose 346.87 points, or 1.12 percent, to 31,384.55, the S&P 500 gained 57.54 points, or 1.50 percent, to 3,902.62 and the Nasdaq Composite added 259.49 points, or 2.28 percent, to 11,621.35.
Asia-Pacific markets opened higher on Friday as investors look ahead to the release of US jobs data for June. The Nikkei 225 rose 0.54 percent, while the Topix index gained 0.34 percent. Australia’s S&P/ASX 200 advanced 0.51 percent. South Korea’s Kospi added 0.91 percent.
Trends on SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 101 points. The Nifty futures were trading around 16,234 levels on the Singaporean exchange.
Oil dips as investors torn by tight supply worries and recession fears
Oil prices slipped in early Asian trade on Friday, following a rebound in the previous session, as investors remained torn between worries over tight global supplies and fears a recession could dampen oil demand.
Brent crude futures fell 39 cents, or 0.4 percent, to $104.26 a barrel by 0013 GMT, dropping away from a near 4 percent rebound on Thursday. US West Texas Intermediate crude slipped 35 cents, or 0.3 percent, to $102.38 a barrel, having settled 4.2 percent higher a day earlier.
Fed hawks signal downshift in US rate hikes after July
Two of the Federal Reserve's most vocal hawks on Thursday said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplayed the risk of higher borrowing costs pushing the US into recession.
TCS consolidated profit may rise 10% on 15-16% growth in Q1 revenue
The first earnings season for the financial year 2023 will kick start tomorrow and as has become customary over the past few quarters, India’s largest IT services provider Tata Consultancy Services (TCS) will open the innings this time too.
Experts look forward to a healthy on-year revenue growth for the Indian IT services sector that was aided by a secular demand environment, healthy deal wins, and mergers and acquisitions. They expect a steady sequential USD-reported revenue growth but it may be affected by adverse cross-currency and seasonality for a few companies in the sector.
Results on July 8 and July 9
Tata Consultancy Services, Brahmaputra Infrastructure, Kohinoor Foods, MMTC and Spectrum Foods will be in focus ahead of their quarterly earnings on July 8.
Avenue Supermarts, Gradiente Infotainment and Scandent Imaging will release their quarterly scorecard on July 9.
Foreign institutional investors (FIIs) have offloaded shares worth Rs 925.22 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 980.59 crore on July 7, as per provisional data available on the NSE.
Indian cryptocurrency exchanges lost over 75% monthly trading volumes in last six months
In the first six months of 2022, top crypto exchanges such as WazirX, CoinDCX, Bitbns and Zebpay, among others, lost more than 70-75 percent of their trading volumes on a monthly average basis. Following the July 1 implementation of the 1 percent TDS (tax deducted at source) on virtual digital assets (VDAs) that was announced in the budget, the situation has only worsened.
While industry stakeholders and experts remained hopeful, terming it a cyclical event, they cautioned that smaller exchanges may face the risk of going bust, even as larger ones may have to slash costs by cutting jobs.
According to data accessed from CREBACO Global, a cryptocurrency research and analysis firm, monthly trading volume on WazirX, which was acquired in November 2019 by Binance, the world’s largest crypto exchange by volume, monthly trading volume plunged from $38.98 million in January to $9.6 million in June 2022, dropping by 75.18 per cent. Zebpay’s monthly trading volumes fell 72.83 per cent from $10.67 million in January to $2.90 million in June, while Bitbns’ trading volumes dropped by over 50 percent from $15.39 million to $7.33 million over the same period.
RBI measures unlikely to bring hefty forex inflows, may not help rupee much: Experts
The Reserve Bank of India’s (RBI) measures to boost foreign exchange inflows may not lead to a huge influx of foreign capital into the country and there is unlikely to be a telling upward impact on the exchange rate, experts and economists told Moneycontrol.
“We have seen such ad-hoc measures in past episodes of rupee depreciation as well with little impact,” said Vikas Bajaj, head of currency derivatives at Kotak Securities. “We have to accept the fact that the rupee is facing problems on both the current (rising trade deficit) and capital account (outflows) side in a backdrop where the external environment for the dollar is quite supportive and financial conditions are getting tighter.”
With inputs from Reuters and other agencies
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