The Indian stock market is expected to open on a cautious note amid weak global cues. Trends on SGX Nifty indicate a cautious opening for the index in India with a 12 points loss.
The BSE Sensex was up 4.89 points at 55,949.10, while the Nifty50 rose 2.20 points to 16,636.90 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 16,598.97, followed by 16,561.04. If the index moves up, the key resistance levels to watch out for are 16,679.27 and 16,721.63.
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 fell on Thursday on fears of a faster tapering of the Federal Reserve's bond purchase program, although gains in banks and some strong earnings reports helped cap losses.
The Dow Jones Industrial Average was down 53.39 points, or 0.15%, at 35,352.11 and the S&P 500 was down 10.14 points, or 0.23%, at 4,486.05. The Nasdaq Composite was down 22.96 points, or 0.15%, at 15,018.90.
Asia-Pacific markets tumbled in early trade on Friday as investors remained cautious ahead of the Federal Reserve’s annual Jackson Hole symposium where Fed Chair Jerome Powell is due to speak.
The Nikkei 225 in Japan declined 0.85% while the Topix index fell 0.74%. South Korea’s Kospi was down 0.33%.
Trends on SGX Nifty indicate a cautious opening for the index in India with a 12 points loss. The Nifty futures were trading at 16,656 on the Singaporean Exchange around 07:30 hours IST.
China's industrial profits in July grow 16.4% YoY
Profits at China’s industrial firms grew at a slower rate of 16.4% on year to 703.67 billion yuan ($108.6 billion) in July, the statistics bureau said on Friday, as elevated commodity prices and supply chain constraints from extreme weather weighed on the sector.
The July growth rate compared with a 20% gain in the previous month. The pace of growth has been slowing for five consecutive months.
For the January-July period, industrial firms’ profits rose 57.3% year-on-year to 4.92 trillion yuan, slowing from a 66.9% increase in the first half of 2021
The US economy grew at a robust 6.6% annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report that pointed to a sustained consumer-led rebound from the pandemic recession. But worries are growing that the delta variant of the coronavirus is beginning to cause a slowdown.
The government’s upgraded estimate for growth in the April-June quarter fell somewhat shy of expectations. Some economists had predicted a 7% annual rate or more. They based that view on a belief that consumer spending had accelerated even faster than the sizzling 11.8% rate first reported. Thursday’s revised estimate for consumer spending, which drives about 70% of economic activity, was upgraded by 0.1 percentage point to 11.9%.
Dollar holds firm as Fed hawks urge early taper ahead of Powell's speech
The dollar held firm on Friday after the U.S. Federal Reserve’s hawkish wing called for tapering bond purchases as investors looked to a highly-anticipated speech by Fed Chair Jerome Powell later in the day.
The dollar index stood at 93.032, bouncing back from Thursday’s low of 92.807 as the euro traded at $1.1755, having eased from the previous day’s high of $1.1779.
Gold steady as investors eye taper clues from Fed symposium
Gold prices were steady on Friday, as investors awaited Fed chief Jerome Powell’s speech later in the day at the Jackson Hole symposium after some U.S. central bank officials called for paring bond purchases.
Spot gold rose 0.1% to $1,793.68 per ounce. US gold futures rose 0.1% to $1,796.70.
Markets regulator Sebi on Thursday came out with detailed modalities for implementation of the accredited investors framework, a move expected to open up a new channel of raising funds from sophisticated investors.
The regulator has issued guidelines on eligibility criteria for accredited investors (AIs), procedure as well as validation for accreditation, procedure to avail benefits linked to accreditation and flexibility to investors to withdraw "consent", according to a circular.
Oil prices lower
Oil fell 1% on Thursday as renewed concerns about demand due to rising COVID-19 infections cut short a three-day rally, and as Mexico restored some oil production after a fire disrupted supplies.
Brent crude was down 78 cents, or 1.1%, at $71.47 a barrel by 11:25 a.m. EDT (1525 GMT). U.S. West Texas Intermediate oil was down 77 cents, or 1.10%, at $67.59 a barrel.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,974.48 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,055.21 crore in the Indian equity market on August 26, as per provisional data available on the NSE.With inputs from Reuters & other agencies