The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 19 points gain.
The BSE Sensex climbed 123.07 points to 54,492.84, while the Nifty50 rose 35.80 points to 16,294.60 and formed Doji candlestick pattern as the closing was near opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 16,220.1 followed by 16,145.6. If the index moves up, the key resistance levels to watch out for are 16,359.3 and 16,424.
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:
US Markets
U.S. stock indexes rose on Thursday after data showed fewer Americans filed for unemployment benefits last week, while a decline in shares of health insurer Cigna dragged healthcare stocks lower.
The Dow Jones Industrial Average was up 205.61 points, or 0.59%, at 34,998.28, the S&P 500 was up 18.85 points, or 0.43%, at 4,421.51 and the Nasdaq Composite was up 92.02 points, or 0.62%, at 14,872.55.
Asian Markets
Shares in Asia-Pacific largely slipped in Friday morning trade as investors await the release of a closely watched US jobs report.
In Japan, the Nikkei 225 gained 0.11% while the Topix index sat fractionally lower. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.37% lower.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 19 points gain. The Nifty futures were trading at 16,329 on the Singaporean Exchange around 07:30 hours IST.
Govt buries ghosts of retrospective tax, tables taxation law amendments in Lok Sabha
Finance Minister Nirmala Sitharaman, on August 5, tabled the Taxation Laws Amendment Bill in Lok Sabha, which seeks to withdraw the contentious retrospective tax more than nine years after it came into force
The move will come as a relief to companies like Cairn Energy and Vodafone, and is likely to end their long-standing legal dispute with the centre.
"The Bill proposes to amend the Income-tax Act, 1961 so as to provide that no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012,” Sitharaman said in a written statement along with the bill.
RBI monetary policy today
The three-day monetary policy committee (MPC) meeting has begun on August 4 and the rate-setting panel will announce its decision on August 6. It is extremely unlikely that the MPC will tinker with rates and move either way on the rate stance. A majority of the economists Moneycontrol spoke to expect no change in rates or MPC's policy stance. High inflation and uncertain growth scenario will likely force the policymakers to continue on a wait-and-watch mode for more cues, they said. Rate-sensitive stocks including banks, realty and auto will be in focus. Names like SBI, PNB, ICICI Bank, HDFC Bank, Maruti Suzuki, Hero MotoCorp, DLF, Oberoi Realty, Godrej Properties and Sobha among other names will be in focus.
US trade deficit hits record in June as imports balloon
A surge in imports of industrial supplies drove the US trade deficit to a record in June, according to government data released Thursday, a sign global supply chains may be coming back online after the pandemic disruptions.
The trade gap widened by $4.6 billion to $75.7 billion, a nearly seven percent increase compared to May, the Commerce Department reported. That was higher than analysts had expected and beat the previous all-time high set that month. Imports of goods and services jumped $6 billion, most of which was accounted for by the rise in industrial materials and supplies such as iron, steel and chemicals, as well as a $1.2 billion increase in non-monetary gold.
Oil rises over 1% as Mideast tensions face virus concerns
Oil prices rose more than 1% on Thursday on increasing Middle East tensions, but gains were capped as fresh restrictions to counter a surge in COVID-19 cases threatened the global energy demand recovery.
Brent crude oil futures rose 91 cents, or 1.3%, to settle at $71.29 a barrel, after earlier dipping below $70 for the first time since July 21. U.S. West Texas Intermediate (WTI) crude futures rose 94 cents, or 1.4%, to settle at $69.09 a barrel.
US unemployment rolls shrinking in boost to labor market recovery
The number of Americans filing new claims for unemployment benefits declined further last week, while layoffs dropped to their lowest level in just over 21 years in July as companies held on to workers amid a labor shortage.
The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also showed the number of people on state jobless rolls dropped in late July to its lowest level since March 2020, when mandatory closures of nonessential businesses were enforced to slow the first wave of COVID-19 cases.
Initial claims for state unemployment benefits fell 14,000 to a seasonally adjusted 385,000 for the week ended July 31. Data for the prior week was revised to show 1,000 fewer applications received than previously reported.
Results on August 6
Hindalco Industries, Mahindra & Mahindra, Aarti Industries, Abbott India, Alkem Laboratories, Anupam Rasayan India, APL Apollo Tubes, Asian Granito India, AU Small Finance Bank, Balkrishna Industries, BASF India, Bharat Electronics, BEML, Berger Paints India, Graphite India, Indigo Paints, JK Tyre & Industries, Metropolis Healthcare, MTAR Technologies, Muthoot Finance, NALCO, Piramal Enterprises, SAIL, Sandhar Technologies, Sona BLW Precision Forgings, Tata Power Company, Torrent Power, Ujjivan Small Finance Bank, Voltas, and Zee Entertainment Enterprises.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 719.88 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 731.92 crore in the Indian equity market on August 5, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Four stocks – Canara Bank, Indiabulls Housing Finance, RBL Bank, and Sun TV Network – are under the F&O ban for August 6. 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
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
