Trends on SGX Nifty indicate a negative opening for the index in India with a 35 points loss. The Nifty futures were trading at 15,876 on the Singaporean Exchange around 7.30 AM.
Indian markets could open flat to mildly lower, in line with largely negative Asian markets today and negative Dow Jones index in US markets on Monday, said Deepak Jasani, Head of Retail Research, HDFC Securities.
"The Nifty is expected to open down by 35 points at 15,850 and has been increasing on low volumes which is a concern for bulls. Nifty has strong resistance at 15,900 and 15,930 and support at 15,800 and 15,750. Traders can consider buying on dips with a strict stop loss of 15700 or on closing above 16000 with higher than average volumes," said Gaurav Udani, Founder & CEO, ThincRedBlu securities.
The Indian equity benchmarks pushed further up in the last hour of trade on Monday (August 2) after opening gap up. It finally closed near the high of the day gaining 0.77 percent or 122 points to close at 15,885.
Nifty has opened the week on a strong note with sharply higher advance decline ratio. A follow through upmove is likely over the next few days after a small pause and Nifty could remain with an upward bias in the 15,817-15,962 band.
Asian markets slip
Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
The Dow Jones Industrial Average fell 97.31 points or 0.28 percent to 34,838.16 and the Nasdaq Composite added 8.39 points or 0.06 percent to 14,681.07.
US stock indexes relinquished solid gains Monday and stocks ended mostly lower as persistent concerns about the spread of the delta variant of the coronavirus that causes COVID-19 created an excuse for modest selling in the first trading day for equity markets in August.
Investors also eyed progress on an infrastructure bill, merger activity and concerns about the pace and timing of the Fed’s plans to roll back easy-money policies.
Meanwhile, a manufacturing survey from the Institute for Supply Management falls to 59.5 in July from 60.6, with the index falling to a 6-month low due to broad supply shortages. The softer-than-expected data also sent US bond yields to their lowest since July 20 (briefly touching 1.15 percent).
The closely followed report comes after IHS Markit’s final reading for manufacturing PMIs in July was 63.4 versus an initial read of 63.1. A reading of 50 or above indicates improving conditions. A separate report on US construction spending was up 0.1 percent in June.
Merchandise exports soar in July
Owing to an uptick in global orders, India's merchandise exports shot up in July, rising by a major 47.9 percent as compared to July, 2020. Impressively, exports also rose by 34.06 percent as compared to July, 2019, before the pandemic struck. In July, imports saw an equally large rise, going up by a huge 46.4 percent to $59.38 billion. Similar to exports, as the low base wears off, the jumps in import growth have moderated.
Rainfall across India during August-September is most likely to be normal with a tendency to be in the positive side of the normal, the India Meteorological Department said in a media statement.
Sebi reduces minimum application value of REITs, InvITs
Markets regulator Sebi has reduced the minimum application value of REITs and InvITs, and revised trading lot to one unit for these emerging investment instruments to make them attractive for retail investors. The minimum application value has been cut down to the range of Rs 10,000-15,000 for both REITs and InvITs, compared to the earlier requirement of Rs 50,000 for REITs and Rs 1 lakh for InvITs, Sebi said in two separate notifications dated July 30.
Also, the regulator said the revised trading lot will be of one unit for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Allotment to any investor is required to be made in the multiples of a lot.
Results to be released today
Bharti Airtel, Adani Enterprises, Adani Ports and Special Economic Zone, Bajaj Healthcare, Bank of India, Barbeque-Nation Hospitality, CARE Ratings, Dabur India, Dhampur Sugar Mills, Prataap Snacks, ELGI Equipments, Everest Industries, Godrej Properties, IIFL Wealth Management, Inox Leisure, Indian Overseas Bank, Kajaria Ceramics, Kalpataru Power Transmission, Munjal Showa, Neuland Laboratories, NOCIL, Shipping Corporation of India, Simplex Realty, Tata Consumer Products, Transport Corporation of India, and TRF will release their quarterly earnings on August 3.
Adani Wilmar files DRHP
Edible oil major Adani Wilmar Ltd (AWL) on Monday filed the draft red herring prospectus with markets regulator Sebi for an initial public offer to raise up to Rs 4,500 crore.
The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.
"The proposed listing of AWL on the stock exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to Rs 45,000 million (approximately $600 million).
Manufacturing PMI soars
India's manufacturing sector output accelerated to the strongest growth rate in three months during July.
Accordingly, the headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 55.3 (index reading) in July as against a reading of 48.1 in June.
The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.
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