The Indian stock market is expected to open in the red following weak global cues as coronavirus cases continue to rise. Trends on SGX Nifty indicate a negative opening for the index in India with a 41-point loss.
Indian equity benchmarks resumed their upward march on June 9. The Sensex closed 409 points, or 1.12 percent, higher at 36,737.69, and the Nifty ended up 108 points, or 1.01 percent, at 10,813.45 levels.
According to pivot charts, the key support level for the Nifty is placed at 10,752.07 followed by 10,690.63. If the index moves up, the key resistance levels to watch out for are 10,855.87 and 10,898.23.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms that can impact Indian as well as international markets:
US Markets
The S&P 500 and Dow dropped on July 9 as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and they began to shift their focus to earnings.
The Dow Jones Industrial Average fell 289.33 points, or 1.11 percent, to 25,777.95, the S&P 500 lost 11.05 points, or 0.35 percent, to 3,158.89 and the Nasdaq Composite added 68.25 points, or 0.65 percent, to 10,560.75.
Asian Markets
Asian shares were set to open mostly lower as record-breaking new coronavirus cases and deaths in several US states stoked concerns that new lockdowns could derail the economic recovery, and investors looked forward to earnings season.
Australian S&P/ASX 200 futures were down 0.41 percent, Japan's Nikkei 225 futures edged up 0.02 percent, and Hong Kong's Hang Seng index futures lost 0.87 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 41 points loss. The Nifty futures were trading at 10,793 on the Singaporean Exchange around 07:30 hours.
Oil dips, heading for weekly loss as virus cases rise
Oil prices dipped on Friday after steep falls in the previous session and were set for a weekly decline on worries renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere will suppress fuel demand.
Brent crude was down by 7 cents, or 0.2 percent, at $42.28 a barrel by 0114 GMT after falling more than 2 percent on July 8. U.S. oil fell 13 cents, or 0.3 percent, at $39.49 a barrel after a drop of 3 percent in the previous session.
Govt to announce steps to revive demand: Sanjeev Sanyal
Principal Economic Adviser Sanjeev Sanyal on July 9 said that the government will undertake measures to boost demand and there is both monetary and fiscal headroom available. He stated that economic activity is steadily getting back on track. Sanyal indicated that the Reserve Bank of India (RBI) may cut interest rates further as a monetary policy tool to improve demand.
"We have announced packages along the way and most of the packages so far have really been about cushioning the demand shock. We haven't, so far at least, been going to the rebuild of the demand phase. We will in the future. We do have monetary and fiscal space to do that," he said.
SEBI revises shareholding limit for exchanges operating in IFSC
Markets regulator SEBI has revised the eligibility and shareholding limit for stock exchanges desirous of operating in international financial services centres to streamline operations at IFSCs. The decision has been taken based on the internal discussions and consultations with the stakeholders, the Securities and Exchange Board of India (SEBI) said in a circular.
Under the framework, any Indian or foreign stock exchange may form a subsidiary to provide the services of bourse in an IFSC, wherein at least 51 percent of stake is held by the exchange and remaining share capital may be offered to any other person (whether Indian or of foreign jurisdiction).
India's GDP to contract by 3% in FY21: Bank of America
India's GDP will contract by 3 percent in FY21 because of the coronavirus pandemic, assuming the economy is opened up fully from next month, a foreign brokerage said. BofA Securities also said the RBI will monetise the fiscal deficit through the purchase of government bonds of up to $95 billion through open market operations, and its revaluation reserves of $127 billion may also be used to recapitalise state-run banks.
BofA Securities' base case estimate is for 3 percent contraction with the assumption of the economy opening up fully from mid-August, which may go up to 5 percent if the crisis prolongs.
India's fuel demand fell 7.9% YoY in June
India's fuel demand fell 7.9 percent in June compared with the same month last year. Consumption of fuel, a proxy for oil demand, totalled 16.29 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
Sales of gasoline, or petrol, were 13.5 percent lower from a year earlier at 2.28 million tonnes. Cooking gas or liquefied petroleum gas (LPG) sales increased 15.7 percent to 2.08 million tonnes, while naphtha sales surged 13.0 percent to 1.17 million tonnes.
TCS Q1 profit falls 13% QoQ to Rs 7,008 crore
The country's top IT services major Tata Consultancy Services (TCS) on July 9 flagged off the June quarter earnings season by reporting a profit at Rs 7,008 crore, down 12.9 percent QoQ, dented by lockdown-led supply and demand challenges. The year-on-year fall in profit stood at 13.8 percent, which partially impacted by a 67.8 percent YoY (down 19 percent QoQ) decline in other income to Rs 456 crore.
Consolidated revenue declined 4.1 percent sequentially to Rs 38,322 crore in the quarter ended June, impacted by all segments, barring banking, financial services and insurance (BFSI). However, revenue increased 0.4 percent YoY. Dollar revenue declined 7.1 percent QoQ to $5,059 million in Q1, while revenue in constant currency terms dropped 6.9 percent QoQ, which was a much higher decline than the analysts’ estimates of around 6 percent. Constant currency revenue growth in Q1FY19 and Q4 FY19 stood at 10.6 percent and 3 percent, respectively.
BSE, NSE discontinue quarterly submission of compliance certificate for order execution
Leading stock exchanges BSE and NSE have decided to discontinue the need for submission of a compliance certificate by trading members for execution of orders from the quarter ended June 2020. Trading members were required to submit the compliance certificate for the execution of orders on a quarterly basis to the exchange confirming the status of compliance with the requirements relating to limit-setting at the time of order placement.
In view of the quantity limits defined by the bourses on orders and individual securities as well as setting up of definite user order, which has been communicated to the market from time to time, it has been decided to discontinue with the requirement of submission of compliance certificate for the execution of orders from the June quarter, the exchanges said in separate circulars.
Results on July 10
Karnataka Bank, IRCTC, Lakshmi Vilas Bank, Future Consumer, Steel Authority of India (SAIL) and Gujarat Narmada Valley Fertilisers & Chemicals (GNFC).
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 212.77 crore while domestic institutional investors (DIIs) sold shares worth Rs 803.39 crore in the Indian equity market on July 9, provisional data available on the NSE showed.
4 stocks under F&O ban on NSE
Bharat Heavy Electricals, Glenmark Pharmaceuticals, Indiabulls Housing Finance and SAIL are under the F&O ban for July 10. 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
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