The market is expected to open flat as trends in SGX Nifty indicate a cautious opening for the broader index in India with a loss of 19 points.
The BSE Sensex rallied more than 500 points to 59,333, while the Nifty50 rose 124 points to 17,659 and formed bearish candle on the daily charts as the closing was higher than opening levels.
As per the pivot charts, the key support level for the Nifty is placed at 17,621, followed by 17,583. If the index moves up, the key resistance levels to watch out for are 17,708 and 17,757.
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:
The Nasdaq and S&P 500 retreated to close lower on Thursday on the realization the Federal Reserve still needs to aggressively boost interest rates to fully tame rising consumer prices despite fresh evidence of cooling inflation.
The Dow Jones Industrial Average rose 27.16 points, or 0.08%, to 33,336.67, while the S&P 500 slid 2.97 points, or 0.07%, to 4,207.27 and the Nasdaq Composite dropped 74.89 points, or 0.58%, to 12,779.91.
Japan stocks surged on return to trade, while shares in the Asia-Pacific were mixed on Friday following strong gains in the previous session as investors digested the U.S. inflation report.
The Nikkei 225 briefly rose 2% and hovered close to that level, while the Topix index rose 1.83%. Japanese markets were closed Thursday for a holiday. In Australia, the S&P/ASX 200 shed 0.69%. South Korea's Kospi gave up early gains to fall 0.26%. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.21%.
Trends in SGX Nifty indicate a flat opening for the broader index in India with a loss of 19 points. The Nifty futures were trading around 17,669 levels on the Singaporean exchange.
US producer prices fall in July; weekly jobless claims rise
US producer prices unexpectedly fell in July amid a drop in the cost for energy products and underlying producer inflation appears to be on a downward trend, while jobless claims rose for a second straight week in a labor market that remains tight.
The producer price index for final demand declined 0.5% last month, the first negative monthly reading since April 2020, the Labor Department said on Thursday. The PPI climbed 1.0% in June. In the 12 months through July, it increased 9.8% after advancing 11.3% in June.
Economists polled by Reuters had forecast the PPI would rise 0.2% in July and increase 10.4% on a year-on-year basis. There was a drop of 1.8% in goods prices after a gain of 2.3% in June. A 16.7% fall in gasoline prices accounted for 80% of that decline. The prices of diesel fuel, liquefied petroleum gas and residential natural gas also fell sharply.
Oil rises as IEA hikes 2022 demand growth forecast
Oil prices rose by over 1% on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring natural gas prices lead some consumers to switch to oil. Brent crude futures gained $1.29, or 1.3%, to $98.69 a barrel by 1348 GMT, while U.S. West Texas Intermediate crude futures rose $1.45, or 1.6%, to $93.38.
Fed officials say more rate hikes needed, despite slowing inflation
Slowing US inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.
A US Labor Department report Wednesday showing consumer prices didn't rise at all in July compared with June was just one step in what policymakers said would be a long process, with a red-hot job market and suddenly buoyant equity prices suggesting the economy needs more of the cooling that would come from higher borrowing costs.
After Wednesday's CPI report, traders of futures tied to the Fed's benchmark interest rate pared bets on a third straight 75-basis-point hike at its September 20-21 policy meeting, and now see a half-point increase as the more likely option.
Results on August 12
More than 700 companies including ONGC, Life Insurance Corporation of India, Hero MotoCorp, Grasim Industries, Divis Labs, Zee Entertainment Enterprises, Aegis Logistics, Ahluwalia Contracts, Apollo Tyres, Astral, Bajaj Electricals, Bajaj Healthcare, Bajaj Hindusthan Sugar, Balaji Amines, Bharat Dynamics, Campus Activewear, Dilip Buildcon, Dhani Services, Finolex Cables, Godrej Industries, Hindustan Aeronautics, Indiabulls Real Estate, India Cements, Kolte-Patil Developers, Muthoot Finance, Info Edge India, Power Finance Corporation, SJVN, Sun TV Network, Supriya Lifescience, Timken India, Varroc Engineering, Voltamp Transformers, and Wockhardt will be in focus ahead of June quarter earnings on August 12.
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 2,298.08 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 729.56 crore on August 11, as per provisional data available on the NSE.
India to be fastest growing economy this year: Govt source
Rising inflation rates notwithstanding, India will be the fastest growing economy in the world this year, a top government source said on Thursday. While inflation continues to be above the comfort zone, the economy has continued on its recovery path, supported by pent-up demand for services and higher industrial output.
The government, the source said, is taking continuous steps and engaging with the RBI to bring down inflation. Inflation has stayed above the upper tolerance limit of 6 per cent for six straight months.
There is no chance of growth slowing and India will be the fastest growing economy this year and the next, the source added. On swelling trade deficit, the source said the current account deficit (CAD) should steady going forward.
Stocks under F&O ban on NSE
Two stocks – Balrampur Chini Mills, and Delta Corp – are under NSE F&O ban for August 12. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters and other agencies