Asian markets traded flat to negative this morning and domestic stocks looked set for a tepid start. Investors are waiting for clarity on the US stimulus package while the Supreme Court will hear the AGR issue later in the day.
Here’s breaking down the pre-market actions.
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 8.95 points, or 0.08 per cent lower at 11,321.80, a sign that Dalal Street was headed for a negative start on Friday.
Tech View: Nifty forms Doji candle
While Nifty50 ended flat on Thursday, it still managed to hold above the 11,300 level. The index continued to form indecisive candles, Thursday’s one being a ‘Spinning Top’, on the daily chart. It has been trading in a narrow range for some time and is facing selling pressure at higher levels. Analysts, however, expect a breakout soon.
Asian shares drop in early trade
Asian shares were trading flat to negative on Friday as markets weighed a pause in Wall Street’s multi-month stock rebound and awaited the release of Chinese economic data later in the session. Japan’s Nikkei 225 was up 0.19 per cent but Singapore’s Strait Times, China’s Shanghai Composite and Hong Kong’s Hang Seng traded with cuts.
US stocks settled higher
In overnight trade, The S&P 500 ended slightly lower on Thursday after briefly trading above its record closing high level for a second day, and the Dow Jones Industrial Average also dipped in the wake of a disappointing forecast from Cisco Systems Inc . The Nasdaq Composite, boosted by Apple Inc., nudged higher.
Q1 results today
A huge number of small companies will come out with their numbers on Friday. Some major names among them are Bodal Chemicals, Greenply Industries, Indian Bank, MRF, NTPC, UBL and Voltas.
Crude oil prices look up
Oil prices advanced on Friday and were heading for a second week of gains. Brent crude rose 14 cents, or 0.3%, to $ 45.10, while WTI gained 12 cents, or 0.3%, to $ 42.36
Gold prices steady a bit
Gold prices steadies at Rs 52,701 per 10 gm on subdued global cues and weaker dollar, while silver rose to Rs 67,439 per kg on Thursday. On MCX, gold futures for October touched Rs 52,823 after rising 1% while silver futures for September rallied 6% to Rs 70,690. In international markets, spot gold rose 1.5% to $ 1,947.08 per ounce, after slipping below $ 1,900 on Wednesday.
FIIs buy Rs 416 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 416.28 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 763.54 crore, data suggests.
Rupee: The Indian rupee closed nearly flat at 74.84 to the US dollar on Thursday, tracking listless domestic equities and higher crude oil prices. During the session, the domestic unit witnessed an intra-day high of 74.78 and a low of 74.92 against the greenback. It finally settled 1 paisa lower at 74.84 against the American unit.
10-year bonds: India 10-year bond yield was flat at 5.895 after trading in 5.87-5.89 range.
Call rates: The overnight call money rate weighted average stood at 3.49 per cent, according to RBI data. It moved in a range of 1.80-4.10 per cent.
DATA/EVENTS TO WATCH
- Berger Paint I Fortis I Glenmark I Hindalco I MRF I NTPC I Voltas
- China July House Price Index (07.00 am)
- China July Industrial Production (07.30 am)
- China July Unemployment Rate (07.30 am)
- India July WPI inflation (12.00 pm)
- Euro Area June Balance of Trade (02.30 pm)
- RBI Forex Reserve as of Aug 7 (05.00 pm)
- July India Bank Loan/Deposit Growth (05.00 pm)
- July India Balance of Trade (05.30 pm)
- US July Industrial Production (06.45 pm)
Retail inflation inches closer to 7%… Retail inflation inched close to the 7% mark in July, accelerating higher than expectations on the back of hardening food prices. The consumer price index rose an annual 6.9% in the previous month, higher than the upwardly revised 6.2% in June, dashing hopes of any interest rate cuts for now. Food inflation soared to an annual 9.6% in July from 8.7% in the previous month as supply disruptions continued to take toll.
Domestic air traffic drops 82%… India’s domestic airlines registered a 82.3% decline year-on-year in the number of passengers flown in July, as depleted demand for travel due to the pandemic continued to impact air travel. Local carriers carried about 2.1 million passengers in July, compared with 11.9 million a year ago but slightly more than about 2 million passengers in the previous month
Faceless tax assessment to all taxpayers… Prime Minister Narendra Modi on Thursday expanded the faceless assessment scheme to all taxpayers, unveiled a single-page Taxpayers’ Charter and promised a faceless appeal mechanism from next month. He urged citizens to be more tax-compliant, pointing to the fact there are just 1.5 crore taxpayers in a country with a population of 130 crore.
E-commerce players seek time… E-commerce industry associations have sought more time – at least 6-7 months – to comply with the new consumer protection rules, including one that requires e-tailers to mandatorily display the ‘country of origin’ of goods. The Consumer Protection (Ecommerce) Rules, 2020, were notified on July 23. The rules, which came into effect immediately, require ecommerce firms to display the country of origin, in keeping with an amendment to the Legal Metrology Rules in 2017.
Naik says anti-China sentiment a game-changer… India is fighting challenges on multiple fronts and it is time the government and industry act in unison for the national cause, Larsen & Toubro Chairman AM Naik said. Addressing shareholders at the company’s 75th AGM on Thursday, Naik also highlighted the need to create an ecosystem that drives growth. He said the current strong anti-China sentiment in the country and around the world can possibly be a “game changer” for Indian industry..
Tatas confirm bid for Air India… The Tata Group has begun due diligence on beleaguered national carrier Air India and may make a formal bid close to the official deadline at the end of this month. The focus at the moment is to examine business synergies and viability, it is learnt. Officials said it is too early for discussions around funding or the possible business structure till the due diligence is complete.
Retail ownership of top stocks hit a high… Retail ownership of India’s biggest stock indices — the Nifty 50 and Nifty 500 — reached a decadal high in the June quarter, with 3.5 million new savers opening demat accounts in the last five months to buy into India’s growth story. And the rise in retail ownership in Nifty 50 companies suggests small investors are buying quality companies this time — unlike in the past.
Global bonds new flavor of the well-heeled … After a few asset managers and private banks started offering “leverage options” to increase gains, global bond portfolios have turned a big draw for these investors. In fact, over half a dozen investment firms with offshore offices have individually raised $ 25–40 million over the past few months, industry sources said, even though the product is only distributed in a closed loop by a small segment of top-end wealth managers.
Overseas investors lap up distressed debt… Overseas debt investors appear to be buying Indian distressed assets again after a prolonged pause. About Rs 7,000 crore of Dewan Housing Finance (DHFL) bonds changed hands in the secondary market in the past few weeks, albeit at discounts of 70-80%. Deutsche Bank (DB) was the sole buyer of the bonds, top industry sources told ET, likely on behalf of clients overseas.