Stock Market Today: Top 10 things to know before the market opens on 10th August
The benchmark Sensex and Nifty are expected to open marginally higher on August 10 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 30 points.
The BSE Sensex gained 149 points to close the previous session at 65,995, while the Nifty50 closed 61 points higher at 19,632, trading near its 200-day moving average of 19,591 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,514, followed by 19,472 and 19,404.
In case of an upside, 19,650 can be the key resistance, followed by 19,692 and 19,760.
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 positive start for the broader index with a gain of 30 points after the Nifty closed 61 points higher at 19,632 points on August 9. GIFT Nifty futures stood at 19,624 points.
US Markets
Stock futures gained slightly in overnight trading as Wall Street looked ahead to a key inflation reading that could impact the Federal Reserve’s next rate move.
Futures tied to the Dow Jones Industrial Average climbed 87 points, or 0.25 percent.
S&P 500 futures and futures connected to the Nasdaq-100 added 0.26 percent and 0.29 percent, respectively.
Disney gained 2 percent after announcing an upcoming price hike for ad-free Disney+ subscriptions.
Wynn Resorts advanced 1 percent on stronger-than-expected results.
The overnight moves followed another down session on Wall Street.
The Dow Jones Industrial Average dropped about 191 points, or 0.54 percent, while the S&P 500 shaved off 0.7 percent, and the Nasdaq Composite shed 1.17 percent.
Traders are looking ahead to Thursday’s July consumer price index report, which could offer more insight into how the central bank’s latest rate moves are affecting sticky prices.
The findings could also impact the Fed’s next rate decision at its upcoming policy meeting in September.
Economists polled by Dow Jones expect July CPI grew by 0.2 percent from the prior month and gained 3.3 percent on a year-over-year basis.
European Markets
The pan-European Stoxx 600 index closed up 0.4 percent, with oil and gas stocks adding 2.3 percent to lead gains as most sectors traded higher.
Travel and leisure ended the session down nearly 1 percent.
Shares of Italian banks took a tumble on Tuesday as a result of the tax, but rebounded Wednesday the Italian government partially backtracked on the measure.
The finance ministry announced late on Tuesday that the tax on net interest income would be capped at 0.1 percent of risk-weighted assets — just one fifth of the level that Citi had estimated it could reach.
FTSE closed 0.80 percent higher at 7,587 points and DAX closed 0.49 percent higher at 15,852 points on Wednesday.
Asian Markets
Asia-Pacific markets fell as investors braced for July consumer price index data out from the US on Thursday.
Expectations from economists polled by Reuters are the inflation rate will come in at 3.3 percent, slightly higher from the 3 percent seen in June.
Japan’s Nikkei 225 slid 0.33 percent and the Topix was down 0.16 percent.
The country saw its July wholesale inflation rate — which measures the price companies charge each other for goods and services — slow to 3.6 percent, down from a revised figure of 4.3 percent in June.
Australia’s S&P/ASX 200 traded just below the flatline, with South Korea’s Kospi was down 0.43 percent and the Kosdaq lost 0.77 percent.
Futures for Hong Kong’s Hang Seng index stood at 19,168, pointing to a lower open compared to the HSI’s last close of 19,246.03.
Sebi reduces timeline for listing shares to T+3 from T+6; mandatory from December 1
The market regulator has reduced the timeline for listing of securities after the closure of public issue to three days, from six days now. With T as the issue-closing date, the securities will now have to be listed on T+3 day versus the current T+6 day.
This will be an option for public issues opening after September 1, 2023, and will be a mandatory requirement for issues opening after December 1, 2023.
Schneider Electric Infrastructure Q1 profit rises to Rs 35 crore
Schneider Electric Infrastructure on August 9 posted a 32 percent rise in net profit to Rs 34.92 crore in the June quarter primarily on the back of higher revenues.
The company had registered a net profit of Rs 26.52 crore in the year-ago quarter, it said in a BSE filing.
The total income of the company rose to Rs 497.57 crore in the first quarter of the current fiscal from Rs 371.98 crore a year ago.
The Board of Directors in their meeting on Wednesday approved the appointment of Suparna Banerjee Bhattacharyya as the Chief Financial Officer (CFO) and key managerial personnel of the company with immediate effect.
V-Mart Q1 results: Net loss of Rs 21.9 crore reported, revenue up 15.4%
V-Mart Retail Ltd on August 9 reported a consolidated net loss of Rs 21.94 crore in the June quarter of FY24, as against a net profit of Rs 20.45 crore in the same quarter of the previous financial year.
The retail chain’s revenue in Q1FY24, however, came in at Rs 678.52 crore, rising 15.4 percent from Rs 587.88 crore in the year-ago period, the company said in a regulatory filing.
Sequentially, the revenue was higher by 14.2 percent as compared to Rs 593.91 crore clocked in the fourth quarter of the last fiscal. Segment-wise, the revenue clocked through retail trade in Q1FY24 came in at Rs 661.15 crore, whereas Rs 17.36 crore was mopped through digital marketplace.
Zee Entertainment Q1 results: Profit falls 97% at Rs 3.9 cr, ad revenue drops 2.6%
Media company Zee Entertainment reported a 97 percent drop in profit after tax (PAT) year-on-year (YoY) at Rs 3.9 crore for the June quarter of the financial year 2024 due to a weak ad environment.
The company had reported 130.1 crore PAT in Q1 FY23. Analysts had expected profit to fall 80-90 percent.
The company reported domestic advertising revenue of Rs 901.8 crore, down 2.6 percent year-on-year (YoY).
The company was estimated to see a 7 percent drop in ad revenues YoY.
Ad spending environment was muted as June quarter started off on a soft note, with Indian Premier League (IPL) scheduled during the first two months of the quarter.
Green shoots emerged towards the quarter end, with early signs of ad spends starting to pick up, led by FMCG, the company said in its earnings presentation.
Oil Prices
Oil hit new peaks on Wednesday with Brent crude touching the highest price since April, as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.
Top exporter Saudi Arabia last week extended its voluntary production cut of 1 million barrels per day for another month to include September, and Russia said it would cut oil exports by 300,000 bpd in September.
The latest recovery is mainly driven by the pledge of major producers, like Saudi Arabia and Russia, to keep supply subdued for another month,” said Charalampos Pissouros, senior investment analyst at broker XM.
Brent crude was up $1.00, or 1.2 percent, having touched $87.24, the highest price since April 13. U.S. West Texas Intermediate (WTI) crude gained 80 cents, or 1.0 percent, to $83.72.
The U.S. benchmark touched $84.11, the highest price since November 2022.
Dollar Index
The Dollar index traded 0.24 percent higher in futures at 102.44, whereas the value of one dollar hovered near Rs 82.84.
Gold Prices
Gold prices fought for traction on Wednesday as investors stayed on the sidelines ahead of key U.S. inflation data that could offer more cues on the Federal Reserve’s stance on monetary policy.
Spot gold was flat at $1,924.39 per ounce, having dropped to its lowest since July 10 earlier in the session.
U.S. gold futures were little changed at $1,958.50 per ounce.
Tomorrow’s CPI will be a pivot point for Fed policy… It’s kind of wait and see mode now,” said Daniel Pavilonis, senior market strategist at RJO Futures.
“Gold has been this inflationary kind of hedge also, but it is fighting an uphill battle with a 10-year yield.
Gold will likely struggle if inflation is still there and the Fed is looking to raise rates too fast,” Pavilonis added. U.S. consumer price index (CPI) data, due on Thursday, is expected to show inflation slightly accelerated in July to an annual 3.3 percent.
FIIs and DIIs
Foreign institutional investors (FII) made buying in the cash segment of Indian equities for the first time in the last 10 consecutive sessions, purchasing shares worth Rs 644.11 crore, whereas domestic institutional investors (DII) sold Rs 597.88 crore worth of stocks on August 9, provisional data from the National Stock Exchange (NSE) showed.
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