Bombay Stock Exchange (BSE)/ file
Bombay Stock Exchange (BSE)/ file

The benchmark Indices are expected to open on a subdued note on account of global cues. US Dow, S&P 500 and Nasdaq Composite declined nearly 1 percent as investors have grown concerned about labor shortages and supply-chain hold up.

At 09:02 AM, the Sensex was up 39.30 points or 0.07 percent at 52608.24, and the Nifty was down 53.50 points or 0.34 percent at 15674.40.

Indian stock market benchmarks indices closed with steep losses on Thursday. The Nifty finally lost 151.75 points or 0.96 percent to close at 15,727.9.

Deepak Jasani, Head of Retail Research, HDFC Securities said, "Technically, support for the Nifty comes in at 15,635, while 15,900 resistance is turning out to be a tough one to crack".

Asian markets open low

Asian markets followed US equities and opened lower on Friday over growing anxiety regarding spread of the highly contagious Delta variant of the coronavirus globally which could hamper the overall economic recovery.

US stocks closed lower on Thursday, as falling bond yields reflected investor concern that a resurgence of COVID cases in some countries may slow the global economic recovery. U.S. stock benchmarks retreated, with the weaker tone across global equities attributed, at least in part, to worries that the recovery could be slowed by persistent supply bottlenecks and the spread of the delta variant of the coronavirus that causes COVID-19. The price action across markets reflected a tug of war between fears of inflation and fears of growth peaking.

The 10-year U.S. Treasury yield was down 3.4 basis points at 1.287 percent after dipping below 1.25 percent, its lowest since February. The US Labor Department said initial jobless claims rose to 373,000 from an upwardly revised 371,000 in the seven days ended July 3. Economists had looked for claims to drop to 350,00

Both FIIs and DIIs were net sellers of Rs 555 crore and Rs 949 crore in yesterday's session. According to Mohit Nigam, Head-PMS, Hem Securities, "Traders need to be a bit cautious as India VIX surged 12 percent yesterday on expectation of higher intra-day volatility. Immediate support and resistance for Nifty 50 are 15,600 and 15,800 respectively. Overall domestic factors are positive on account of fall in pandemic cases and vaccination progress and we would advise a buy on dips strategy in the current market."

Money continued to flow into mutual funds in June 2021, though at a slower pace. The total assets under management of the mutual fund industry jumped to Rs 33.66 lakh crore as on June 30 from Rs 33.05 lakh crore as on May 31. The number of systematic investment plans (SIP) in various schemes of mutual funds went up to 4.02 crore in June 2021 compared to 3.88 crores in May 2021. The contribution from SIP also went up to Rs 9,155 crore in June 2021 from Rs 8818 crore in May. The equity funds got an inflow of Rs 5,988 crore in June 2021, down from Rs 10,082 crore in May.

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Free Press Journal