Stock Market Today: Top 10 things to know before the market opens on 18th August
The benchmark Sensex and Nifty indices are likely to open marginally lower on August 18 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 65 points.
The BSE Sensex dropped 388 points to close the previous session at 65,151 points, while the Nifty50 closed 99 points lower at 19,365 points, trading near its 200-day moving average of 19,599 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,333, followed by 19,301 and 19,249.
In case of an upside, 19,436 can be the key resistance, then 19,468 and 19,520.
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.
GIFT Nifty
The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 65 points after the Nifty closed 99 points lower at 19,365 points on August 17. GIFT Nifty futures stood at 19,317 points.
US Markets
S&P 500 futures were little changed Thursday night after the major averages dropped for a third straight day.
Dow Jones Industrial Average futures rose by 11 points, or 0.03 percent.
S&P 500 futures and Nasdaq 100 futures dipped 0.02 percent and 0.12 percent.
Applied Materials shares added nearly 2 percent in extended trading after the semiconductor equipment maker beat analysts’ expectations on the top and bottom lines.
Ross Stores also popped about 5 percent after topping second-quarter forecasts.
During the regular session Thursday, the Dow closed below the 50-day moving average for the first time since June 1 — which is a bearish signal for investors.
The 30-stock index tumbled 290.91 points, or 0.84 percent. Meanwhile, the S&P 500 declined 0.77 percent, and the Nasdaq Composite slid 1.17 percent.
The 10-year US Treasury yield on Thursday hit its highest level since October 2022.
The move came after the July meeting minutes from the Federal Reserve suggested further interest rate hikes could be ahead as central bank policymakers remain concerned about inflation.
Rates are not going higher for the right reasons in my opinion,” Private Advisor Group’s Guy Adami told CNBC’s “Fast Money.
This is now a confluence of events going on globally. We’re at levels we haven’t seen in quite some time.”
“If yields continue to move like they’re moving, there’s going to be some ramifications for global equity markets,” he added.
European Markets
European markets retreated on Thursday after the US Federal Reserve’s July meeting minutes showed further interest rate hikes were not off the table.
The pan-European Stoxx 600 provisionally closed 0.9 percent lower.
Industrials fell 2.8 percent and tech stocks were down by 1.8 percent. Basic resources and oil and gas were the only sectors in the green, up by 0.8 percent and 0.3 percent.
The European blue-chip index closed Wednesday’s session down 0.1 percent as investors assessed the UK inflation figures along with euro zone second-quarter gross domestic product data.
Swedish gaming group Embracer reversed some of its recent losses, climbing 12.5 percent to top the index after reiterating its full-year guidance in quarterly results.
Minutes from the July meeting of the rate-setting Federal Open Market Committee showed officials expressed concern about the persistence of inflation and suggested more hikes to interest rates could be necessary unless conditions improve.
FTSE closed 0.63 percent lower at 7,310 points. DAX closed 0.71 percent lower at 15,676 points.
Asian Markets
Asia-Pacific markets fell on Friday as investors assessed Japan’s July inflation data and fresh blows to China’s real estate sector. Japan’s core inflation rate fell to 3.1 percent, down from 3.3 percent in June.
Headline inflation remained at 3.3 percent.
Meanwhile, embattled Chinese real estate giant Evergrande has filed for bankruptcy protection in a US bankruptcy court.
The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-US companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States,” according to Reuters.
Futures for Hong Kong’s Hang Seng index stood at 18,147, pointing to a weaker open compared to the HSI’s close of 18,326.63. Japan’s Nikkei 225 slipped 0.58 percent and the Topix also fell by 0.59 percent after the inflation reading was released.
In Australia, the S&P/ASX 200 inched down 0.2 percent, while South Korea’s Kospi was 0.67 percent lower and the Kosdaq lost 0.59 percent.
India among only a few with over 6% GDP projection: Pratik Gupta of Kotak
India looks attractive from top down, believes Kotak Institutional Equities CEO Pratik Gupta, as it ranks among a few markets in the world with the economic growth estimated at over 6 percent for the next 10-15 years.
The macro-outlook for the country looks good, despite a surge in retail inflation, he said. “The spike in inflation is temporary and will come down.”
Gupta, however, pointed out that the valuations were quite high. “The Nifty is trading at 21x FY24 P/E, and about 18x FY25 for earnings growth of 15 percent and if you look at India’s premium versus the MSCI EM index, we are now at a premium of about 60 percent,” he said.
The market is likely to undergo a consolidation phase in the short term and if there is a correction, it will be around 3 to 5 percent range, he said, maintaining that the market looks attractive from a long-term perspective.
NSE rejig: ACC, Nykaa, HDFC AMC to be out of Nifty Next 50 from September 29
The National Stock Exchange of India (NSE) on August 17 announced a rejig in its key indices, which will lead to the exclusion of ACC, Nykaa and HDFC Asset Management Company (HDFC AMC) from the Nifty Next 50.
The change will come into effect from September 29.
Along with the three companies, Indus Towers and Page Industries would also be moved out from Nifty Next 50.
They will be replaced by Punjab National Bank, Shriram Finance, Trent, TVS Motor and Zydus Lifesciences.
The same set of replacement will also be seen in the Nifty 100 index, from September 29 onwards. Apart from the above five entities, Tata Motors would also be included in Nifty 100, as per a release issued by NSE.
Among the companies set for exclusion from Nifty Next 50 and Nifty 100, ACC has lost 22.21 percent of its stock value year-to-date, Nykaa-operator FSN E-Commerce Ventures lost 14.28 percent, Indus Towers has slipped 14.29 percent and Page Industries 1.72 percent.
Pitti Engineering Q1 net up by 19% to Rs 13.97 crore
Pitti Engineering Ltd, which is into the manufacturing of traction and special purpose motors and generators, has reported a net profit of Rs 13.97 crore, indicating a year-on-year growth of 19.30 percent as against Rs 11.71 crore in the same period last year.
Pitti Engineering also recorded its highest-ever EBITDA for a quarter at Rs 42.43 crore as compared with Rs 35.45 crore, up 19.69 percent.
The company’s total revenues for the quarter ended June 30, 2023, was at Rs 290.71 crore, as compared with Rs 311.06 crore in the year-earlier period, down by 6.54 percent.
During the quarter the company achieved a sales volume of 9,958 MT.
“The market outlook remains positive with robust demand for the company’s products and services.
The ongoing brownfield expansion at its facilities is progressing as planned,” it said in a release.
Pyramid Technoplast raises Rs 27.55 crore via anchor book ahead of IPO
Industrial packaging company Pyramid Technoplast mobilized Rs 27.55 crore from four anchor investors on August 17, ahead of the public issue opening.
Carnelian Structural Shift Fund, Alchemie Ventures Fund-Scheme I, Pluris Fund, and Resonance Opportunities Fund are the anchor investors.
Carnelian Structural Shift Fund, a part of Carnelian Asset Advisors founded by Vikas Khemani, bought the maximum amongst them, buying Rs 12.55 crore worth of shares.
The company has finalized the allocation of 16.59 lakh equity shares to anchor investors, at a price of Rs 166 per share.
Oil Prices
Oil prices rose more than 1% on Thursday after China’s central bank sought to stem the rising tide of pessimism over the country’s property market and wider economy.
Prices fell in the previous session on simmering worries over the impact on fuel demand from a deepening property crisis that is stifling momentum in China’s economy and from the potential for further increases to U.S. interest rates.
Brent crude futures rose $1.15, or 1.38 percent, to $84.60 a barrel and US West Texas Intermediate crude was up $1.38, or 1.74 percent, at $80.76 a barrel.
After falling nearly six dollars, it was only a matter of time before crude prices found support, said OANDA analyst Edward Moya. Prices are rebounding on expectations that Chinese officials will deliver meaningful stimulus and that the oil market will remain tight, analysts suggested.
“Oil traders like the fact that China isn’t going to tolerate weakness in economic activity,” said Naeem Aslam at Zaye Capital Markets after China’s central bank said it would keep its policy “precise and forceful” to support the country’s economic recovery.
US interest rates remain in focus, with minutes of the Federal Reserve’s July meeting on Wednesday that showed officials did not give strong indications about pausing rate hikes in an effort to prioritize the battle against inflation.
Dollar Index
The Dollar index traded 0.08 percent lower in futures at 103.35, whereas the value of one dollar hovered near Rs 83.10.
Gold Prices
Spot gold was up 0.2 percent at $1,895.60 per ounce, after hitting its lowest level since March 15 at $1,888.30 earlier in the session. U.S. gold futures were trading slightly lower at $1,925.80.
The dollar index slipped 0.3 percent against its rivals, making gold less expensive for other currency holders.
Gold has been down over the course of the last several sessions due to rising interest rates and bond yields,” said David Meger, director of metals trading at High Ridge Futures, adding, “we did see a bit of bargain hunting at these levels.”
“We noticed yesterday in response to the FOMC minutes the market portended that the Federal Reserve still might need to be a bit more aggressive than previously expected in regard to continuing to raise rates.”
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 1,510.86 crore, while domestic institutional investors (DII) offloaded Rs 313.97 crore worth of stocks on August 17, provisional data from the National Stock Exchange (NSE) showed.
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