The market is expected to open on a cautious note as trends in the SGX Nifty indicate a flat opening for the broader index in India with a gain of 15 points.
The BSE Sensex fell more than 500 points to 53,887, while the Nifty50 tanked 158 points to 16,058 on Tuesday and formed a bearish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 16,007, followed by 15,955. If the index moves up, the key resistance levels to watch out for are 16,134 and 16,210.
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:
US Markets
Wall Street ended in the negative territory on Tuesday as growing signs of recession kept buyers out of the equity market ahead of inflation data.
The Dow Jones Industrial Average fell 192.51 points, or 0.62 percent, to 30,981.33, the S&P 500 lost 35.63 points, or 0.92 percent, to 3,818.8 and the Nasdaq Composite dropped 107.87 points, or 0.95 percent, to 11,264.73.
Asian Markets
Shares in the Asia-Pacific were mixed on Wednesday ahead of China trade data and central bank decisions in the region. Investors will also be looking ahead to the US inflation report for June.
Japan’s Nikkei 225 rose 0.48 percent, and the Topix index gained 0.43 percent In South Korea, the Kospi advanced 0.39 percent. The S&P/ASX 200 in Australia was 0.2 percent lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan was just above the flatline.
SGX Nifty
Trends in SGX Nifty indicate a flat opening for the broader index in India on Wednesday with a gain of 15 points. The Nifty futures were trading around 16,075 levels on the Singaporean exchange.
Favourable base propels IIP growth to 19.6% in May
India's industrial growth, as per the Index of Industrial Production (IIP), surged to 19.6 percent in May from 7.1 percent in April, data released on July 12 by the Ministry of Statistics and Programme Implementation showed.
At 19.6 percent, the May industrial growth rate is the highest in one year, although it has been aided by a favourable base effect. IIP growth in May 2021 was 27.6 percent.
Economists expected industrial growth to pick up sharply from April's 7.1 percent because of a low base. In the year-ago period, the IIP was posting sharp sequential falls – from 145.6 in March 2021 to 115.1 in May 2021 – as the country was engulfed by the second wave of the coronavirus pandemic, leading to the re-imposition of restrictions on movement and activity in several regions.
RBI signals monetary policy won’t sacrifice growth too much
India’s central bank Governor Shaktikanta Das said monetary policy is mindful of the economy’s growth needs, signaling that tightening will be geared to ensure there isn’t a massive slowdown.
His comments in a fireside chat at the Singapore Indian Chamber of Commerce and Industry’s event in the city-state on Tuesday came as intensifying global price pressures and a weaker currency add to inflationary concerns and pressure on the Reserve Bank of India to tighten policy further.
“We always factor in growth requirement for the economy and the growth sacrifice should be within the manageable limit,” Das said. Policy should not lead to a situation where the economy faces a “massive slowdown.”
June CPI inflation comes in at 7.01%, RBI one quarter away from failure
India's headline retail inflation rate, as measured by the Consumer Price Index (CPI), was largely unchanged at 7.01 percent in June from 7.04 percent in May, data released on July 12 by the Ministry of Statistics and Programme Implementation showed.
The latest inflation print is along consensus estimates. As per a Moneycontrol poll, CPI inflation was seen at 7 percent in June.
At 7.01 percent, the June CPI inflation print takes average inflation for April-June to 7.3 percent, 20 basis points lower than the Reserve Bank of India's (RBI) forecast of 7.5 percent. However, undershooting the forecast is of little significance at this stage, with the central bank on track to miss its mandate.
Oil prices slip on anticipated U.S. inventory build amid demand worries
Oil prices fell in early Asian trading on Wednesday as U.S. inventory data showed buildups in crude oil and refined products amid rising fears of a global economic slowdown.
Brent crude futures dropped 68 cents, or 0.7%, to $98.81 a barrel at 0002 GMT. U.S. West Texas Intermediate crude declined 72 cents, or 0.8%, at $95.12, also the lowest in three months.
OPEC forecasts slower oil demand growth in 2023
OPEC forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year’s growth forecast was left unchanged at 3.36 million bpd.
Results on July 13
Mindtree, Tata Metaliks, Gujarat Hotels, International Travel House, Premier Polyfilm, Ramasigns Industries, and Jupiter Industries & Leasing will be in focus ahead of quarterly earnings on July 13.
FII and DII data
Foreign institutional investors (FIIs) have offloaded shares worth Rs 1,565.68 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 140.71 crore on July 12, as per provisional data available on the NSE.
With inputs from Reuters and other agencies
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