The market is likely to see flat opening as the GIFT Nifty indicates a muted start for the broader index, with a gain of 2 points at 19,843.
On July 19, the Sensex was up 302.30 points or 0.45 percent at 67,097.44, and the Nifty was up 83.90 points or 0.42 percent at 19,833.20.
The pivot point calculator suggests that the Nifty may get support at 19,757 followed by 19,727 and 19,680. In case of an upside, 19,852 can be a key resistance area followed by 19,881 and 19,928.
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.
GIFT Nifty
The GIFT Nifty indicates a flat start for the broader index with a gain of 2 points on Thursday. The futures stood at 19,843.
US Markets
The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark.
Bank stocks extended their rally, with the S&P 500 bank index advancing 1.70 percent, gaining for a third straight session and for the eighth time in the past nine.
Goldman Sachs rose 0.97 percent after reporting a 3-year low in profit but CEO David Solomon made upbeat comments about signs of a recovery in investment banking. That echoed comments from other big banks on Tuesday.
The Dow Jones Industrial Average rose 109.28 points, or 0.31 percent, to 35,061.21, the S&P 500 gained 10.74 points, or 0.24 percent, to 4,565.72 and the Nasdaq Composite added 4.38 points, or 0.03 percent, to 14,358.02.
The Dow notched its eighth straight session of gains, its longest winning streak since September 2019.
Asian Markets
Asia-Pacific markets largely fell on Thursday ahead of a slew of economic data across the region.
Investors will be closely watching China’s one and five-year loan prime rates to see if the country’s government will attempt to spur growth by cutting rates, days after China’s second quarter GDP came in below expectations.
Japan’s Nikkei 225 opened down 0.48 percent, while the Topix was 0.22 percent lower as Japan posted a surprise trade surplus of 43 billion yen ($308 million), its first surplus in 23 months.
South Korea’s Kospi fell 0.54 percent, with the Kosdaq retreating from its 16-month high to see a larger loss of 0.8 percent.
UK inflation
Inflation in the UK has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that may ease the pressure for the Bank of England to raise interest rates sharply over the coming months.
The Office for National Statistics said that inflation, as measured by the consumer prices index, fell to 7.9 percent in the year to June from 8.7 percent the previous month. Economists had expected a more modest decline to 8.2 percent.
The Office for National Statistics said that inflation, as measured by the consumer prices index, fell to 7.9 percent in the year to June from 8.7 percent the previous month. Economists had expected a more modest decline to 8.2 percent.
European Markets
European stocks closed higher on Wednesday after the UK inflation came in cooler than expected.
The pan-European Stoxx 600 index closed up 0.3 percent, with oil and gas stocks up 1.1 percent. The FTSE 100 was up 1.8 percent as the British pound fell against the US dollar and the euro, and the UK bond yields fell sharply.
Dollar Updates
The US dollar bounced on Wednesday after inflation in the United Kingdom cooled more than economists expected in June, sending the pound sharply lower against other major currencies.
Britain's rate of inflation was its slowest in over a year at 7.9 percent, according to data that will ease some of the pressure on the Bank of England to keep on raising interest rates sharply. Economists polled by Reuters had mostly forecast a smaller slowdown, to 8.2 percent in the 12 months to June from May's 8.7 percent.
Crude Price falls
Oil prices slipped in early Asian trade on Thursday, extending the previous session's losses, as the dollar strengthened and on profit-taking after US crude oil stocks fell less than expected.
Brent futures dipped 14 cents, or 0.2 percent, to $79.32 a barrel by 0001 GMT, while US West Texas Intermediate (WTI) crude fell 15 cents to $75.20 a barrel.
Strength in the US dollar index weighed on prices. The dollar bounced on Wednesday after sentiment was boosted by inflation in the UK falling more than expected in June to its slowest pace in more than a year at 7.9 percent.
Gold Price Updates
Gold prices hovered near an eight-week peak on Wednesday after recent economic data re-ignited hopes that the US Federal Reserve may soon hit pause on its interest rate-hiking cycle.
Spot gold eased 0.1 percent at $1,977.25 per ounce by 01:43 p.m. ET (1743 GMT), as the US dollar ticked up from 15-month lows.
US gold futures settled unchanged at $1,980.80.
FIIs and DIIs
Foreign institutional investors (FII) have bought shares worth Rs 1,165.47 crore, whereas domestic institutional investors (DII) sold shares worth Rs 2,134.54 crore on July 19, provisional data from the National Stock Exchange (NSE) shows.
Stocks under F&O ban on NSE
The NSE has added L&T Finance Holdings and Polycab India to its F&O ban list for July 20, while retaining Delta Corp, Indiabulls Housing Finance, Manappuram Finance, and RBL Bank . Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
(With inputs from Reuters and other agencies)
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