Trends on SGX Nifty indicate a flat opening for the index in India with a 27 points gains. The Nifty futures were trading at 16,321 on the Singaporean Exchange around 07.25 AM.
The Dow Jones Industrial Average and S&P 500 closed at record levels on Wednesday, as data indicated US inflation growth may have peaked, while sectors tied to economic growth advanced on the heels of the passage of a large infrastructure bill.
Indian markets could open flat to mildly higher, in line with largely positive Asian markets today and higher Dow index in US markets on Wednesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
"Nifty is expected to open positive , up by 50 points at 16330. Nifty has strong resistance at 16350 and strong support in 16150-16200 range. On closing above 16350 on Nifty with good volumes it can see 16450-16500 levels. The trend in Nifty remains bullish as long as it trades above 15900 level", said Gaurav Udani, Founder & CEO, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities said the benchmark indices are expected to open slightly on a positive note as suggested by trends on SGX Nifty. On technical front, Nifty50 shall continue on its upside momentum with support levels of 16,100 and the near-term resistance at 16,400. We believe any significant dip is a good opportunity to accumulate quality stocks in these markets."
Indian benchmark indices had another rollercoaster day on Aug 11 even as the indices recovered from the morning lows to end almost flat. At close Nifty was up 2 points or 0.01 percent to 16,282.
Nifty has closed in the band of 16,238-16,280 for the sixth session after seeing some downward volatility earlier in the day on Wednesday. Advance decline ratio continues to be negative but has improved compared to the previous day. The broader markets may have made a short term bottom and this may enable the Nifty to rise mildly in the near-term.
Dow ends on record high
The Dow industrials and S&P 500 finished in record territory for a second straight day on Wednesday, after a report on consumer inflation mostly matched expectations, but the broader market faced some headwinds as healthcare and growth shares were sold. Stocks finished mostly higher on Wednesday after a new reading on consumer inflation offered some evidence to calm fears about high costs of living in the US during the pandemic.
The Labor Department reported the July consumer-price index rose 5.4% in July from a year earlier, as price measures of food, energy, shelter and new vehicles rose, while costs of used cars, airfare and auto insurance retreated. The reading was about in line with data on June and slightly lower than some predictions for 5.5 percent. The government said the July CPI increased 0.5 percent for the month, matching expectations.
Data to watch out today
The India June Industrial Production y/y, India July Consumer Price Inflation y/y.
Asian stocks up
Asian shares failed to follow a strong close on Wall Street with fears about the spread of the Delta variant of the coronavirus weighing on sentiment even as tame US inflation eased fears the Federal Reserve would rush to reduce its economic support. That data also caused dollar to retreat against major currencies and US Treasury yields to edge down overnight though both were steadier in Asian hours.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.25 percent in early trading, dragged by a 0.24 percent decline in Chinese blue chips. The Hong Kong benchmark fell 0.2 percent while Australian shares were largel flat and Japan's Nikkei rose 0.35 percent.
Japan WPI at fastest growth in 13 years
Japanese wholesale prices rose in July at their fastest in 13 years, data showed on Thursday, a sign the global commodity inflation and a weak yet were pushing up raw material import costs for a broad range of goods.
The corporate good price index (CGP), which measures the price companies charge each other for their goods and services, rose 5.6 percent in July, from a year earlier, Bank of Japan data showed, beating a median market forecast for a 5.0 percent gain.
Dollar near four-month peak
The dollar held near a four-month peak against major peers on Thursday after retreating overnight as a colling in consumer inflation tempered bets for an earlier tightening of US monetary policy.
Results to be released today (August 12)
The following companies will release their quarterly earnings today: Tata Steel, Eicher Motors, Hero MotoCorp, Aurobindo Pharma, BPCL, Oil India, Ashok Leyland, Bharat Forge, Ansal Properties & Infrastructure, Apollo Micro Systems, Ashapura Minechem, Avanti Feeds, Clariant Chemicals (India), Dishman Carbogen Amcis, Dish TV India, Engineers India, Finolex Cables, Gujarat Pipavav Port, GR Infraprojects, HCC, HealthCare Global Enterprises, HUDCO, Ind-Swift Laboratories, IRCON International, IRCTC, JB Chemicals, KNR Constructions, Matrimony.com, Max India, Mazagon Dock Shipbuilders, Mishra Dhatu Nigam, Minda Corporation, Natco Pharma, NMDC, Page Industries, Power Finance Corporation, RailTel Corporation of India, RCF, Redington (India), RITES, Sadbhav Infrastructure Project, Schneider Electric Infrastructure, Skipper, Sundram Fasteners, Suryoday Small Finance Bank, Thyrocare Technologies, Trident, Ujjivan Financial Services, and Venus Remedies.
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