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Updated on: Thursday, August 05, 2021, 09:13 AM IST

Markets likely to open mildly higher in line with Asian markets

Bombay Stock Exchange (BSE)  | PTI

Bombay Stock Exchange (BSE) | PTI

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Trends on SGX Nifty indicate a positive opening for the index in India with a 18 points gain. The Nifty futures were trading at 16,278 on the Singaporean Exchange around 7.30 AM.

The Dow Jones Industrial Average fell 323.73 points or 0.92 percent to 34,792.67, the S&P 500 lost 2049 points or 0.46 percent to 4,402.66 and the Nasdaq Composite added 19.24 points or 0.13 percent to 14, 780,53

"The markets could open flat to mildly higher, in line with largely range bound Asian markets today and despite a lower Dow Jones index in higher US markets on Wednesday", said Deepak Jasani, Head of Retail Research, HDFC Securities.

"The Nifty is expected to open flat at 16270, 11 points above yesterday's close. Nifty has been rising for the last 5 days. We may see some intraday corrections to 16200 levels which will act as strong support. Nifty may see 16400 and 16450 levels in the coming days." said Gaurav Udani, Founder and CEO, ThincRedBlu Securities.

Asian shares mixed

Shares in Asia-Pacific were mixed on Thursday morning trade, following declines overnight on Wall Street. Japan's Nikkei 225 gained 0.31 percent in morning trade while the Topix index advanced 0.25 percent. South Korea's Kospi stood little changed.

Asian shares held on to recent gains in morning trading on Thursday, despite hawkish remarks from a senior official at the US Federal Reserve, that boosted the dollar while weighing on risk appetite, and uncertainty about Chinese policy.

Nifty likely to remain steady

Nifty rose with another gap up on August 4 reflecting the pent-up demand in index heavyweights. Advance decline ratio however has turned very negative despite Nifty being up, suggesting profit taking in the broader markets. With other markets doing well, Nifty could continue to remain steady/up, while the broader market correction could continue for a few sessions.

Carrying on from the momentum of the previous day, Nifty opened gap up on August 4 and continued to inch up in the morning session. It closed 0.79 percent or 128 points higher at 16259. The indices made another record intraday high and closing high.


US stocks close lower

US stocks ended mostly lower Wednesday, after Federal Reserve Vice Chairman Richard Clarida said the economic recovery during the pandemic could prove robust enough to pave the way for higher interest rates in 2023.

In US economic data on Wednesday though, fewer than expected private sector jobs were created in July, according to ADP, setting the stage for Friday’s monthly nonfarm-payrolls report from the US Labor Department to disappoint as investors monitor COVID-19 cases and the spread of the delta variant. Last month saw 330,000 jobs added, missing consensus estimates of economists surveyed by Dow Jones for 653,000 and marking the smallest monthly gain since February.

The private-sector jobs update comes ahead of Friday’s jobs-market report from the US Labor Department where 845,000 jobs are anticipated and the unemployment rate is projected to fall to 5.7 percent from 5.9 percent.

A survey of service-oriented businesses pushed its index up to 64.1 in July from 60.1 in the prior month, hitting the highest level on record, with input costs rising at the fastest rate since 2005, the Institute for Supply Management said Wednesday.

Brazil’s central bank raised its key interest rate by a full percentage point on Wednesday for the first time since 2003, and pledged to step on the policy tightening accelerator even harder to ensure inflation is pulled back toward target next year. The unanimous decision to raise the benchmark Selic rate to 5.25 percent was in line with the predictions of 37 of the 46 economists in a Reuters poll, and followed three consecutive rate increases of 75 basis points.

Results to be released today

GAIL India, Cipla, Adani Power, Aditya Birla Capital, Indiabulls Housing Finance, Accelya Solutions India, Ador Welding, Andhra Petrochemicals, Arvind, Bajaj Consumer Care, Birla Corporation, Brigade Enterprises, Cera Sanitaryware, Edelweiss Financial Services, Escorts, Gujarat Gas, Hikal, Honeywell Automation India, Ipca Laboratories, Jubilant Industries, NCC, Narayana Hrudayalaya, PTC India Financial Services, Prince Pipes and Fittings, Quess Corp, REC, Thermax, and TTK Healthcare.

Maintain current A/Cs in 'appropriate number' of banks: Sebi to mutual funds

Markets regulator Sebi on Wednesday asked mutual funds to maintain current accounts in an appropriate number of banks for receiving subscription amount and payment of redemption and dividend.

The move is aimed at facilitating financial inclusion, convenience of investors and ease of doing business, the Securities and Exchange Board of India (Sebi) said in a circular.

"Based on the request of mutual fund industry, it is clarified that mutual funds should maintain current accounts in an appropriate number of banks for the purpose of receiving subscription amount and for payment of redemption/dividend/brokerage/ commission etc," Sebi said.

At present, mutual funds maintain current accounts in multiple banks including in banks having presence beyond the top 30 cities (B-30 cities), for receiving subscription amount and for payment of redemption proceeds, dividend brokerage and commission.

This enables investors to transact with banks of their choice and facilitates faster transfer of funds.

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Published on: Thursday, August 05, 2021, 09:01 AM IST
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