Trends on SGX Nifty indicate a negative opening for the index in India with a 70 points loss.
The Indian stock market is expected to open in the red following worsening coronavirus pandemic and soured US-China relations. Trends on SGX Nifty indicate a negative opening for the index with a 70 points loss.
The Sensex ended the day 269 points, or 0.71 percent, higher at 38,140.47 on July 23 and the Nifty closed 83 points, or 0.74 percent, up at 11,215.45.
According to pivot charts, the key support level for the Nifty is placed at 11,132.53, followed by 11,049.57. If the index moves up, the key resistance levels to watch out for are 11,269.13 and 11,322.77.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street dropped sharply on Thursday as investors fled market-leading tech shares due to mixed earnings reports and growing signs of a worsening coronavirus pandemic, which could exacerbate a deep economic recession.
The Dow Jones Industrial Average fell 353.51 points, or 1.31%, to 26,652.33, the S&P 500 lost 40.36 points, or 1.23%, to 3,235.66 and the Nasdaq Composite dropped 244.71 points, or 2.29%, to 10,461.42.
Asian Markets
Asian markets are set to open mostly lower on Friday as China vowed to retaliate against a US order to close one of its consulates, and the American equity markets fell on gloomy data about its labor market.
Australian S&P/ASX 200 futures lost 0.86% in early trading. Japan’s Nikkei 225 futures added 0.11%, while the Nikkei 225 index closed the overnight session down 0.58%. Hong Kong’s Hang Seng index futures lost 1.13%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 70 points loss. The Nifty futures were trading at 11,158 on the Singaporean Exchange around 07:30 hours IST.
Oil falls on coronavirus demand concerns, weak US jobs numbers
Oil prices fell 2% on Thursday as investors worried the US Congress may not agree on a stimulus package and as jobless numbers rose, while analysts prepared to cut energy demand forecasts as the number of coronavirus cases surges higher.
Brent futures fell 98 cents, or 2.2%, to settle at $43.31 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 83 cents, or 2.0%, to settle at $41.07.
Indian economy set for post-COVID-19 rebound as FDI remains buoyant: IHS Markit
IHS Markit expects the Indian economy to rebound in the second half of 2020 as the impact of the COVID-19 pandemic subsides, and predicts 6.7 percent growth in the next financial year.
The London-based global information provider said in its outlook on the Indian economy, "The severe negative impact is expected to result in a significant contraction in GDP in the April-June quarter of 2020, resulting in a recession in the 2020-21 financial year with GDP expected to contract by 6.3 percent year-on-year."
Sebi permits OFS, rights entitlement transactions during trading window closure period
Markets regulator Sebi on Thursday allowed offer for sale (OFS) and rights entitlement transactions during the trading window closure period. Under market norms, listed companies need to use a trading window to monitor transactions by designated persons in a bid to prevent insider trading.
The compliance officer is responsible for closing the trading window, in case the designated persons are expected to be in possession of unpublished price sensitive information. In a circular, Sebi said "trading window restrictions shall not apply in respect of OFS and RE (rights entitlement) transactions carried out in accordance with the framework specified by the Board from time to time."
Govt unlikely to achieve FY21 Budget targets due to COVID-19 crisis: DEA Secretary
The government is unlikely to meet the Budget targets for 2020-21 due to the COVID-19 crisis but contraction in economic growth may not be as severe as being pointed out by the outside world, Economic Affairs Secretary Tarun Bajaj said. He said the government on a regular basis is monitoring 14-15 parameters which can give early signs of where the economy is heading.
US weekly jobless claims rise; labor market recovery stalling
The number of Americans filing for unemployment benefits rose last week for the first time in nearly four months, suggesting the labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand.
Initial claims for state unemployment benefits increased to a seasonally adjusted 1.416 million for the week ended July 18, from 1.307 million in the prior week, the Labor Department said on Thursday. That was the first weekly rise in applications since the week ending March 28, when claims raced to a record 6.867 million as nonessential businesses like restaurants and gyms were shuttered to slow the spread of the coronavirus.
India's sugar production likely to go up 12% to 30.5 MT in SY2021: ICRA
The domestic sugar production is likely to go up by 12 per cent to 30.5 million tonnes (MT) during the sugar year 2021, beginning October, due to availability of sugarcane in Maharashtra and Karnataka, according to a report. The sugar production in India is likely to increase by 12.1 percent to 30.5MT YoY in sugar year (SY) 2021, after adjusting for the impact of the diversion of B-heavy molasses and sugarcane juice for ethanol manufacture, ICRA said in a report.
The production is likely to increase in SY2021, because of higher production in Maharashtra and Karnataka, which was adversely impacted in the previous year due to drought.
Results on July 24
ITC, Asian Paints, Ambuja Cements, JSW Steel, Zee Entertainment Enterprises, Atul, Bharat Road Network, CCL Products, Chennai Petroleum Corporation, Confidence Petroleum India, Coromandel International, Crompton Greaves Consumer Electricals, GHCL, Jay Shree Tea, Sintex Plastics Technology, TCI Express, Texmo Pipes, Welspun India, etc.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 1,740.5 crore, while domestic institutional investors (DIIs) sold shares worth Rs 931.91 crore in the Indian equity market on July 23, provisional data available on the NSE showed.
11 stocks under F&O ban on NSE
Adani Enterprises, Bharat Heavy Electricals, Glenmark Pharmaceuticals, GMR Infrastructure, Vodafone Idea, Jindal Steel & Power, L&T Finance Holdings, Mahindra & Mahindra Financial Services, National Aluminium Company, Steel Authority of India and Sun TV are under the F&O ban for July 24. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies