Trends on SGX Nifty indicate a cautious opening for the index in India with a 19 points gain. All eyes are on the RBI's Monetary Policy to be out today.
The Nifty futures were trading at 16,329 on the Singaporean Exchange around 7.30 AM.
US stock indices 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 Indian markets could open flat to mildly higher, in line with largely rangebound Asian markets today and despite positive US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
"Nifty is expected to open flat around yesterday’s close. It has been making new highs since the last 4 days but the volumes have decreased in the last 2 days therefore it seems there may be some correction. 16200 and 16150 will act as very strong support. Nifty may see 16400 and 16450 in the next few days", said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
On Thursday (August 6), the benchmark indices closed mildly higher on Aug 05 for the third consecutive day amidst mixed global cues and profit taking in broader markets. At close the Nifty was up 0.22 percent or 35.8 points to close at 16294.6.
Nifty made a classic doji after a rise on Aug 05, suggesting indecision at higher levels. Either one or two up gaps made in the course of the journey from 15885 may come in for filling over the next few sessions. Advance decline ratio was very bad in the morning session, but improved a bit towards the end to look better than the previous day, though very much in the negative. 16,176-16,349 could be the trading band for the Nifty in the next 1-2 sessions.
Asian shares decline
Asian shares failed to catch a firm lead from a bumper Wall Street session on Friday as the spread of the Delta variant of the coronavirus across the region heightened worries about its economic recovery. Shares fell in Hong Kong and China, where Beijing’s regulatory crackdown and a warning about a possible downward spiral at China Evergrande Group -- the world’s most indebted developer -- subdued sentiment.
US stocks maintain positive tone
The S&P 500 index and the Nasdaq Composite ended at records Thursday as shares sensitive to economic recovery and technology stocks both rose while investors positioned for the monthly jobs report on Friday that will help shape views on how long the Federal Reserve’s bond-buying program will continue. Stocks maintained a positive tone Thursday after data showed first-time claims for unemployment benefits last week fell to 385,000, down 14,000 from the previous week and in line with forecasts, while continuing claims fell below 3 million for the first time since March 2020.
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.
Four stocks--Canara Bank, Indiabulls Housing Finance, RBL Bank, and Sun TV Network--are under the F&O ban today.
Stock to watch out for
HDFC: Launches QIP issue at a floor price of Rs 1,838.94 per share. The floor price is a 4 percent premium to Wedesday's closing. The company intends to raise Rs 14,000 crore through issue of equity and Rs 9,000 crore through NCDs. The board will meet on August 10 to consider the issue price for the sale.
Inox Leisure: Board approves the enabling resolution for fund raising up to Rs 250 crore through the issue of equity shres/other methods.
Canara Bank: 22.7 perecnt loan book under moratorium post-Q1 results.
Bharti Airtel: Bloomberg News reports that Telecom Kenya has opted out of the company'sproposed merger.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)