Trends on SGX Nifty indicate a flat to negative start for the broader index in India, with a loss of 21.50 points or 0.13 percent. The Nifty futures were trading around 16,358-level on the Singaporean Exchange.
The Indian markets could open flat to mildly higher, despite largely negative Asian markets today and flat US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
The Nifty is expected to open flat around Thursday's (August 12) close at 16,370. On Thursday, it closed above its resistance level of 16,350. It may now face resistance at 16,400 and 16,450. On the downside the support has shifted to 16,280 and 16,320 levels. Entering trades on correction can be a good strategy for the current market, said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
According to Mohit Nigam, Head-PMS, Hem Securities, stock-specific actions can be witnessed in stocks such as Coal India (Plans to increase prices of the fuel sold through long-term contracts), Tata Power (bagged an order worth Rs 386 crore), Future Group stocks (Future Coupons Pvt. has filed a fresh petition in Supreme Court challenging a high court ruling that ordered a complete halt to selling its assets to Reliance Industries Ltd).
"Key earnings to watch today include ONGC, IRFC, Indraprastha Gas, Petronet LNG, Glenmark Pharma etc. On technical front, crucial support for Nifty 50 is 16,100 while immediate resistance is 16,400," Nigam said.
Indian benchmark indices touched another record high even as the broader markets improved on Aug 12. At close the Nifty was up 82.15 points or 0.5% to 16364.4. In the process, the Indian indices (alongwith Indonesian indices) were the best performers in the Asian region.
Nifty broke upwards, as expected, post a 6 day range close. Advance decline ratio has turned sharply positive bringing relief to market participants. Broad market indices like smallcap and midcap indices have outperformed the Nifty. There could be a day or two of followup upmove for the Nifty (though gradual) while the broader markets continue its upward retracement.
Dow closes at record high for third straight day
The US stock indexes edged higher Thursday, nudging both the Dow Jones Industrial Average and S&P 500 up to fresh closing records for a third straight day, as investors weigh economic data with an eye toward what it means for the Federal Reserve’s plans to eventually taper its asset purchases. Thursday marked the first time since March 15, 2021 that both the Dow and S&P 500 have closed at a new record for three consecutive days.
Mega-cap technology stocks driving the market higher as investors warmed to jobs data showing a steady US economic recovery. The Dow Jones Industrial Average rose 14.88 points or 0.04 percent to 35,499.85, the S&P 500 gained 13.13 points or 0.30 percent to 4,460.83 and the Nasdaq Composite added 51.13 points or 0.35 percent to 14,816.26 points.
First-time claims for jobless benefit benefits came in at 375,000 last week, matching estimates and near a pandemic low. The producer-price index was up 7.8 percent year over year in July versus 7.3 percent in June, while the core PPI reading, which excludes food and energy, accelerated to 6.1 percent from 5.5 percent.
July data likely marks the peak for PPI as supply pressures gradually unwind in the coming months and demand moderates from its blistering pace in the first half of the year.
In India, Consumer Price Index-Based inflation (CPI) for July came in at 5.59 percent (vs 6.3 percent in June), back within the Monetary Policy Committee's inflation targeting range of 4 (+/-2) percent, on the back of softening food prices. Consumer Food Price Inflation (CFPI) for July cooled to 3.96 percent compared with 5.15 percent in June, data from the National Statistical Office showed on August 12.
The Index of Industrial Production in India rose 5.7 percent in June from the previous month. It had contracted 8.4 percent in May on a monthly basis, according to revised estimates. Over a year ago, industrial output was higher by 13.6 percent. Manufacturing and power sectors rose month on month while mining fell.
Asian markets fall in early trade
Asian markets were trading in red in the early Friday trade with HongKong and Taiwan indices both down -1 percent.
Most Asian equity markets continued to ignore record highs hit elsewhere in the world and fell in early trading on Friday. Traders have been pointing to continued worries about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the new coronavirus in several countries in the region.
Peru's central bank on Thursday raised its benchmark interest rate to 0.5 percent from 0.25 percent, its first hike since the pandemic forced a steep drop in rates, as the Andean nation faces rising inflation like many of its regional peers. The Bank of Mexico on Thursday raised its key interest rate by 25 basis points to 4.5 percent in a bid to contain price pressures, and more increases are expected this year even though two of its five-member board voted to leave borrowing costs unchanged.
China released a five-year blueprint calling for greater regulation of vast parts of the economy, providing a sweeping framework for the broader crackdown on key industries that has left investors reeling. In real estate, China is suspending private equity funds from raising money to invest in residential property development. Separately, a partial shutdown of a major Chinese port due to a virus outbreak stoked concerns about a repeat of last year’s pandemic shipping woes.
The dollar held firm on Friday, staying near its highest level in four months against a basket of urrencies as investors looked for more hints from the Federal Reserve on its plans to reduce monetary stimulus.
Oil prices decline
Oil prices fell for a second day on Friday after teh IEA warned that demand growth for crude and its products had slowed sharply as surging cases of COVID-19 worldwide has forced goverments to revive restrictions on movements.
Company results today
The following companies will release their results today: Godrej Industries, Grasim Industries, NBCC (India), NHPC, Oil and Natural Gas Corporation, Hindustan Aeronautics, Indraprastha Gas, Inox Wind, Burger King India, Sun TV Network, Allcargo Logistics, Archies, D B Corp, Gayatri Projects, Glenmark Pharmaceuticals, Gujarat Mineral Development Corporation, GMR Infrastructure, Godfrey Phillips India, Indian Railway Finance Corporation, IL&FS Investment Managers, Inox Wind Energy, Jammu & Kashmir Bank, Jagran Prakashan, Madhucon Projects, Maharashtra Seamless, Mawana Sugars, Orbit Exports, Orchid Pharma, Petronet LNG, SEAMEC, Sintex Industries, Suven Pharmaceuticals, Suzlon Energy, Tide Water Oil (INDIA), Ucal Fuel Systems, Uttam Galva Steels, Visa Steel, Vivimed Labs and ZEE Learn.
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