The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader indices in India with a loss of 37 points.
In the previous session on August 30, the Sensex surged 1,564 points, or 2.7 percent, to 59,537. The Nifty jumped 446 points, 0r 2.8 percent, to 17,759 to form a strong bullish candlestick on the daily charts. Indian stock market was closed on August 31 on account of Ganesh Chaturthi.
As per the pivot charts, the key support for the Nifty is placed at 17,515 followed by 17,270. If the index moves up, the key resistance levels to watch out for are 17,891 and 18,022.
Stay tuned to Moneycontrol to find out what happens in the 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
U.S. stocks ended the month with their fourth straight daily decline on Wednesday, cementing the weakest August performance in seven years as worries about aggressive interest rate hikes from the Federal Reserve persist.
The Dow Jones Industrial Average fell 280.44 points, or 0.88%, to 31,510.43; the S&P 500 lost 31.16 points, or 0.78%, to 3,955; and the Nasdaq Composite dropped 66.93 points, or 0.56%, to 11,816.20.
Asian Markets
Asian Markets are trading weak with Taiwan Weighted, Nikkei, Kospi down over 1% each, and Hang Seng down 0.7 percent.
SGX Nifty
Trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 37.50 points. The Nifty futures were trading around 17,472.50 levels on the Singaporean exchange.
GDP growth surges to 13.5% in April-June on favourable base, but misses estimates
India's GDP growth surged to 13.5 percent in April-June from 4.1 percent the previous quarter, data released on August 31 by the Ministry of Statistics and Programme Implementation showed. The sharp uptick in growth was driven by a favourable base effect and the ongoing economic revival.
The Indian economy grew slower than anticipated last quarter, with economists predicting growth would come in at 15 percent, as per a Moneycontrol poll. The growth rate is also lower than the Reserve Bank of India's (RBI) forecast of 16.2 percent.
April-July fiscal deficit at Rs 3.41 lakh crore; July sees first fiscal surplus since start of pandemic
The central government's fiscal deficit stood at Rs 3.41 lakh crore in April-July, accounting for 20.5 percent of the full-year target, data released on August 31 by the Controller General of Accounts showed. The fiscal deficit for April-July 2021 had accounted for 21.3 percent of the FY22 target.
The fiscal deficit in the first four months of FY22 was Rs 3.21 lakh crore. As such, the fiscal deficit in April-July of the current financial year is 6 percent higher on a year-on-year basis.
Core sector growth slows to 4.5% in July
India's eight core sectors grew 4.5 percent in July, slowing from an upwardly revised 13.2 percent in June, the commerce ministry said on August 31. Output in six of the eight core sectors grew in July. These sectors include coal, refinery products, electricity, fertilisers, cement and steel, said the ministry.
While India’s economy is expected to be the fastest growing major economy, the recovery faces headwinds such as a looming slowdown in the West and continued economic uncertainty due to the Russia-Ukraine war.
India Inc's foreign investment declines over 50% to $1.11 bn in July
India Inc's foreign direct investment in July declined over 50 percent to USD 1.11 billion in July 2022, the Reserve Bank data showed. As per the RBI data, on Outward Foreign Direct Investment (OFDI), the domestic companies had invested over USD 2.56 billion in July 2021 in the form of equity, loan and issuances of guarantees.
In a breakup, the Indian businesses invested USD 579.15 million by equity infusion, USD 193.21 million as loans and USD 337.49 million infused by issuing guarantees to their overseas ventures during July 2022.
Oil falls on greater supply, lower China demand
Oil prices fell in early Asian trade on Thursday, led lower by increased supply and worries that the global economy could slow further with renewed restrictions to curb COVID-19 in China.
Brent crude futures fell 37 cents, or 0.4%, to $95.27 a barrel by 0006 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.4%, to $89.23 a barrel.
Gold hits six-week trough on stronger dollar, rate hike worries
Gold prices slipped to a more than one-month low on Thursday, as the dollar firmed and prospects of the U.S. Federal Reserve continuing with its aggressive policy tightening stance weighed on the zero-yielding bullion's appeal.
Spot gold XAU= fell 0.2% to $1,706.99 per ounce, as of 0100 GMT, after hitting its lowest level since July 21 at $1,704.94 earlier.
U.S. gold futures GCv1 shed 0.5% to $1,717.50.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 4,165.86 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 656.72 crore on August 30, as per provisional data available on the NSE.
With inputs from Reuters and other agencies