The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a negative opening for the index in India with a 40 points loss.
The BSE Sensex rallied 397.04 points to 52,769.73, while the Nifty50 jumped 119.80 points to 15,812.40 and formed Doji kind of pattern on the daily charts as the closing was near its opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 15,764.33, followed by 15,716.37. If the index moves up, the key resistance levels to watch out for are 15,840.53 and 15,868.77.
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:
Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.
The Dow Jones Industrial Average fell 0.31% to 34,888.79, the S&P 500 lost 0.35% to 4,369.21 and the Nasdaq Composite dropped 0.38% to 14,677.65.
Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected U.S. inflation report for June overnight.
In Japan, the Nikkei 225 slipped 0.14% while the Topix index sat above the flatline. The Kospi in South Korea dipped 0.26%.
Trends on SGX Nifty indicate a negative opening for the index in India with a 40 points loss. The Nifty futures were trading at 15,794 on the Singaporean Exchange around 07:30 hours IST.
Oil rises nearly 2% as investors size up tight market
Oil prices gained almost 2% on Tuesday after the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additional crude to ship worldwide.
Brent crude rose $1.33, or 1.8%, to settle at $76.49 a barrel, while U.S. West Texas Intermediate crude rose $1.15, or 1.6%, to settle at $75.25 a barrel.
IEA says refining throughput set to rise in July, August
Global refining runs are expected to continue rising in July and August due to increasing vaccination rates and easing social distancing measures around the world, the International Energy Agency (IEA) said on Tuesday. The Paris-based agency, however, expected the trend will lose momentum in winter due to seasonal maintenance of refineries.
Refiners around the world significantly reduced their operations in 2020 as they faced an unprecedented fall in fuel demand brought about by the coronavirus pandemic and mobility restrictions. The lockdowns at their peak destroyed over 20% of global oil demand.
S&P affirms India's rating at lowest investment grade for 14th year in a row
S&P Global Ratings on Tuesday affirmed India's sovereign rating at the lowest investment grade of 'BBB-' for the 14th year in a row with a stable outlook, and said that the country's strong external settings will act as a buffer against financial strains despite elevated government funding needs over the next 24 months.
"India's democratic institutions promote policy stability and compromise, and also underpin the ratings. These strengths are balanced against vulnerabilities stemming from the country's low per capita income and weak fiscal settings, including consistently elevated general government deficits and indebtedness," it said in a statement.
US consumer prices post largest gain in 13 years; inflation has likely peaked
US consumer prices increased by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum.
The yield on the benchmark 10-year Treasury note briefly shot up before retreating as investors concluded that the U.S. central bank would likely maintain its ultra easy monetary policy stance for a while. Powell will present the semiannual Monetary Policy Report to the U.S. Congress on Wednesday.
The consumer price index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May. Economists polled by Reuters had forecast the CPI would climb 0.5%. Used cars and trucks prices accelerated 10.5%. That was the biggest jump since January 1953 when the government started tracking the series. Used cars and trucks have been the major driver of inflation in recent months.
Results on July 14
Infosys, 5paisa Capital, Alliance Integrated Metaliks, Bhakti Gems and Jewellery, Craftsman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release quarterly earnings on July 14.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 113.83 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 344.19 crore in the Indian equity market on July 13, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Seven stocks – Granules India, Vodafone Idea, NALCO, NMDC, Punjab National Bank, SAIL, and Sun TV Network – are under the F&O ban for July 14. 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 & other agencies