The Indian stock market is expected to open in the green following positive Asian cues and acceleration in China factory recovery. Trends on SGX Nifty indicate a positive opening for the index in India with a 58 points gain.
Sensex closed 335 points, or 0.88 percent, down at 37,736.07 on July 30 and Nifty ended 101 points, or 0.90 percent, down at 11,102.15. According to pivot charts, the key support level for the Nifty is placed at 11,024.8, followed by 10,947.4. If the index moves up, the key resistance levels to watch out for are 11,239.8 and 11,377.4.
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 which could impact Indian as well as international markets:
The S&P 500 and Dow closed lower on Thursday after data painted a worrying economic picture on a crucial day for corporate earnings reports, while President Donald Trump exacerbated investor nervousness by floating the possibility of delaying the U.S. presidential election.
The Dow Jones Industrial Average fell 225.92 points, or 0.85%, to 26,313.65, the S&P 500 lost 12.22 points, or 0.38%, to 3,246.22 and the Nasdaq Composite added 44.87 points, or 0.43%, to 10,587.81.
Asian equities were set to rise on Friday after shares of Apple, Amazon and Facebook surged in extended trading on Thursday, with Alphabet also climbing, while the U.S. dollar continued to slide.
Hong Kong's Hang Seng index futures rose 0.06%. Australian S&P/ASX 200 futures lost 0.47%, while Japan's Nikkei 225 futures added 0.34%.
Trends on SGX Nifty indicate a positive opening for the index in India with a 58 points gain. The Nifty futures were trading at 11,159 on the Singaporean Exchange around 07:30 hours IST.
China's factory recovery accelerates in July: PMI
China’s factory activity expanded in July for the fifth month in a row and at a faster pace, beating analyst expectations despite disruptions from floods and a resurgence in coronavirus cases around the world.
The official manufacturing Purchasing Manager’s Index (PMI)rose to 51.1 in July from June’s 50.9, official data showed on Friday, marking the highest reading since March. Analysts had expected it to slow to 50.7.
Japan's factory output rebounds, jobless rate falls as lockdown lifts
Japan’s industrial output snapped four months of decline in June, pointing to a modest recovery in broader business and consumer activity in the world’s third-largest economy following a heavy hit to demand from the coronavirus pandemic.
Official data released on Friday showed factory output increased 2.7% in June from the previous month when it hit its lowest level since March 2009 during the financial crisis.
Oil sinks on weak U.S. economic data, political uncertainty
Oil prices sank on Thursday following poor U.S. economic figures and after U.S. President Donald Trump roiled markets with a suggestion that the nation should delay its November presidential election.
Oil markets recovered from their lowest levels of the selloff. U.S. West Texas Intermediate (WTI) crude futures settled down $1.35, or 3.3%, at $39.92 a barrel after falling 5% earlier in the session. Brent crude futures, which expire on Friday, fell 81 cents, or 1.9%, to $42.94 a barrel.
Trump raises possibility of delaying November US presidential election
US President Donald Trump on Thursday raised the possibility of delaying the nation's November presidential election despite its date being enshrined in the US Constitution. Trump, without evidence, repeated his claims of mail-in voter fraud and raised the question of a delay, writing: "delay the election until people can properly, securely and safely vote???"
US economy shrank at record-breaking 33% rate last quarter
The US economy shrank at a dizzying 33 percent annual rate in the April-June quarter — by far the worst quarterly plunge ever — when the viral outbreak shut down businesses, throwing tens of millions out of work and sending unemployment surging to 14.7 per cent, the government said Thursday.
The Commerce Department's estimate of the second-quarter decline in the gross domestic product, the total output of goods and services, marked the sharpest such drop on records dating to 1947. The previous worst quarterly contraction, a 10 per cent drop, occurred in 1958 during the Eisenhower administration.
1.4 million in the US seek jobless aid as coronavirus keeps forcing layoffs
More than 1.4 million laid-off Americans applied for unemployment benefits last week, further evidence of the devastation the coronavirus outbreak has unleashed on the US economy. The continuing wave of job cuts is occurring against the backdrop of a spike in virus cases that has led many states to halt plans to reopen businesses and has caused millions of consumers to delay any return to travelling, shopping and other normal economic activity.
Those trends have forced many businesses to cut jobs or at least delay hiring. The Labor Department's report on Thursday marked the 19th straight week that more than 1 million people have applied for unemployment benefits.
RIL Q1 profit beats estimates, up 31% YoY: Jio net at Rs 2,520 crore
Reliance Industries reaped the benefits of the endurance of its oil business, the increasing popularity of its digital services and strong growth of its retail unit to ride out a tough quarter with better-than-expected earnings. The combined performance of these businesses helped the company top projections of analysts and fend off the coronavirus slowdown with the first quarter results released on July 30. RIL reported a consolidated profit of Rs 13,248 crore for the first quarter of FY21 with Jio's ARPU growth of 7.4 percent QoQ at Rs 140.3 per subscriber per month beating Street expectations.
"The severe demand destruction due to global lockdowns impacted our hydrocarbons business but the flexibility in our operations enabled us to operate at near normal levels and deliver industry leading results," Mukesh Dhirubhai Ambani, Chairman and Managing Director said.
Consolidated profit during June quarter 2020 (which included exceptional gain of Rs 4,966 crore from stake sale to BP in Reliance BP Mobility) increased 102.4 percent sequentially and the year-on-year increase was 30.6 percent. Consolidated profit in March quarter 2020 stood at Rs 6,348 crore and Rs 10,141 crore in the corresponding period of last year.
Results on July 31
State Bank of India, Tata Motors, Sun Pharmaceutical Industries, Indian Oil Corporation, UPL, 63 Moons Technologies, Aarey Drugs, BF Utilities, Binani Industries, Birla Tyres, Deepak Fertilisers, Future Lifestyle Fashions, Future Supply Chain Solutions, Godrej Agrovet, Jagran Prakashan, JSW Energy, Just Dial, Dr Lal PathLabs, Mcleod Russel, MEP Infrastructure Developers, Mahindra Holidays & Resorts, Motilal Oswal Financial Services, Nelco, NIIT, Reliance Communications, Reliance Capital, Reliance Home Finance, RPG Life Sciences, Tata Chemicals, Tata Metaliks, Thyrocare Technologies, UCO Bank, Ujjivan Small Finance Bank, Vakrangee, VA Tech Wabag, etc.
FII & DII data
Foreign institutional investors (FIIs) bought shares worth Rs 207.3 crore while domestic institutional investors (DIIs) sold shares worth Rs 387.24 crore in the Indian equity market on July 30, as per provisional data available on the NSE.
Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments which publishes MoneycontrolWith inputs from Reuters & other agencies