Stock Market Today: Top 10 things to know before the market opens on 11th August
The benchmark Sensex and Nifty are expected to open marginally higher on August 11 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 16 points.
The BSE Sensex lost 307 points to close the previous session at 65,688 points, while the Nifty50 closed 89 points lower at 19,543 points, 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 19,505, followed by 19,475 and 19,426.
In case of an upside, 19,603 can be the key resistance, followed by 19,633 and 19,682.
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 16 points after the Nifty closed 89 points lower at 19,543 points on August 10.
GIFT Nifty futures stood at 19,556 points.
US Markets
US stock futures inched up on Thursday night as traders mulled over the July consumer inflation report and looked ahead to wholesale prices data.
Futures linked to the Dow Jones Industrial Average rose by 38 points, or 0.1 percent.
S&P 500 futures and Nasdaq 100 futures climbed 0.1 percent and 0.2 percent, respectively.
During Thursday’s main trading session, the major averages notched small gains, but were far off the session’s highs.
The Dow added 52.79 points, or 0.15 percent, while the Nasdaq Composite gained 0.12 percent.
The S&P 500 ticked up just 0.03 percent.
The July consumer price index indicated prices rising by 3.2 percent on an annual basis, which was lower than the 3.3 percent forecast by economists, according to Dow Jones.
However, the core CPI, which excludes volatile food and energy costs, rose 4.7 percent from the prior year.
I think investors in general have just been overly optimistic as we enter this seasonally weak period,” said James Demmert, chief investment officer of Main Street Research.
The print on the CPI, I think, is a reminder: The Fed’s done a lot of this work that needs to be done, but it’s still a bit sticky.
So that means rates [are] higher for longer,” he said Thursday on CNBC’s Closing Bell: Overtime.
European Markets
European markets closed higher on Thursday as investors digested a fresh round of corporate earnings and a key US inflation print. The pan-European Stoxx 600 index ended the session up 0.8 percent, with household goods adding 2.2 percent to lead gains on the back of strong earnings.
Mining stocks, meanwhile, slid 0.9 percent.
The July US consumer price index rose 3.2 percent from a year ago and 0.2 percent month-on-month, new data from the Bureau of Labor Statistics showed on Thursday, slightly below expectations.
Economists polled by Dow Jones had projected July CPI growth of 0.2 percent from the prior month and 3.3 percent on a year-over-year basis.
Core CPI, which excludes volatile food and energy prices, also gained 0.2 percent month-on-month for a 4.7 percent year-on-year increase, also slightly below a consensus estimate.
FTSE closed 0.41 percent higher at 7,618 points and DAX closed 0.91 percent higher at 15,996 points on Thursday.
Asian Markets
Asia-Pacific markets rose on Friday after inflation in the US came in lower than expected, raising hopes markets could see a ‘soft landing’ in the inflation fight.
July consumer prices gained 3.2 percent on an annual basis, less than the 3.3 percent consensus from economists polled by Dow Jones. On a month-to-month basis, inflation increased 0.2 percent, in-line with estimates.
The report also said real average weekly earnings were unchanged last month in another positive sign.
However, the core inflation rate — which strips out prices of food of energy — was at 4.7 percent, the lowest since October 2021 and lower than the 4.8 percent expected.
In Asia, Australia’s S&P/ASX 200 was marginally above the flatline, while South Korea’s Kospi was up 0.34 percent and the Kosdaq gained 0.11 percent. Japan’s markets are closed for a public holiday.
Futures for Hong Kong’s Hang Seng index stood at 19,292, pointing to a stronger open compared to compared to the HSI’s close of 19,248.26.
RBI’s I-CRR will not cause any liquidity shortage for banks, say bankers
The Reserve Bank of India’s (RBI) announcement of the Incremental Cash Reserve Ratio (I-CRR) is unlikely to create any liquidity shortage for the banking industry, which in turn could hinder the lending process, bankers told Moneycontrol on August 10.
Bankers are drawing comfort from the assurance of RBI Governor Shaktikanta Das during the post-policy press conference that the central bank will remain nimble towards liquidity management and act on both sides, they added.
There is the availability of liquidity for credit.
For that, I don’t think there’s any impact because banks have sufficient liquidity available,” said Ashwani Kumar, Managing Director (MD) and Chief Executive Officer (CEO) of UCO Bank.
Air India unveils new logo ‘Vista’, livery in rebranding push
Air India Chairperson N Chandrasekaran on August 10 unveiled a new logo, branding and plane livery for the Air India as part of a multi-million dollar transformation of the former state-run carrier.
The airline’s new logo includes a modern design with golden, red and purple colours.
It will replace the old logo of a red swan and orange spokes inside the swan, inspired by the Ashoka Chakra.
According to the official statement, Air India’s new logo symbol – ‘The Vista’ – is inspired by the peak of the gold window frame, signifying “limitless possibilities, progressiveness, and the airline’s bold, confident outlook for the future.”
Further, Air India’s new aircraft livery and design features a palette of deep red, aubergine, and gold highlights, as well as a chakra-inspired pattern. It also houses a custom-made ‘Air India Sans’ font.
Hero MotoCorp Q1 FY24 PAT up 32% at Rs 825 crore, revenue up 4.5% at Rs 8,767 crore
Aided by higher prices, improvement in operating performance and reversal-of-inventorisation benefits, Hero MotoCorp Ltd on Thursday reported a 32 percent year-on-year (YoY) rise in its first quarter standalone net profit at Rs 825 crore as compared to Rs 624.52 crore a year ago.
The company’s revenue increased 4.5 percent to Rs 8,767.27 crore in Q1FY24 as against Rs 8,392.54 crore in the year-ago period.
Lower commodity costs, price hikes, positive operating leverage and a richer product mix also helped the company boost its bottom line.
Niranjan Gupta, Chief Executive Officer, Hero MotoCorp, said, “Our underlying margins in ICE business have returned to pre‐Covid levels, providing us the necessary fuel for growth as we move forward.
The singular focus as we move ahead will be growth and market share.”
LIC Q1 Results: Net profit rises multi-fold on higher income on investments
Life Insurance Corporation of India on August 10 reported a 1,299 percent surge in net profit at Rs 9,543 crore for the quarter ended June 30, 2023, on higher income on investments.
The insurance behemoth had reported a net profit of Rs 682 crore a year ago.
The gross non-performing asset (GNPA) as of June 30 stood at 2.48 percent as against 5.84 percent last year. Its net NPA was nil, same as last year.
Income from investments grew to Rs 90,309 crores in the April-June FY24 quarter from Rs 69,570 crores last year.
The company sold a total of 32,16,301 policies were sold in the individual segment during the quarter ended June 30th, 2023, as compared to 36,81,764 policies sold during the quarter ended June 30th, 2022.
Oil Prices
Oil prices fell slightly on Thursday, with Brent crude holding close to January highs, as speculation about another US interest rate hike faded following inflation data and OPEC remained positive on the oil demand outlook.
Both benchmarks have been on a sustained rally since June, with WTI trading at its highest this year on Thursday and Brent hitting its highest price since January.
Brent crude fell 72 cents to $83.68 a barrel. West Texas Intermediate crude (WTI) was down 46 cents at $87.09, after falling by $1 earlier in the session.
Oil prices have been boosted in recent days by extensions to output cuts by Saudi Arabia and Russia, alongside supply fears driven by the potential for conflict between Russia and Ukraine in the Black Sea region to threaten Russian oil shipments.
Dollar Index
The Dollar index traded 0.15 percent higher in futures at 102.46, whereas the value of one dollar hovered near Rs 82.84.
Gold Prices
Gold prices rose on Thursday after data showed U.S. consumer prices increased moderately in July, cementing expectations the Federal Reserve is at the end of its rate hike cycle.
Spot gold was up 0.3 percent at $1,919.49 per ounce after rising as much as 0.8 percent following the release of the US data. US gold futures edged up 0.1 percent to $1,952.10.
The consumer price index rose 0.2 percent last month, matching the increase in June, the U.S. Labor Department said.
The CPI advanced 3.2 percent in the 12 months through July, up from a 3.0 percent rise in June, which was the smallest year-on-year gain since March 2021.
FIIs and DIIs
We have seen buying from both FIIs and DIIs in the cash segment. Foreign institutional investors (FII) bought shares worth Rs 331.22 crore, while domestic institutional investors (DII) purchased Rs 703.72 crore worth of stocks on August 10, provisional data from the National Stock Exchange (NSE) showed.
Bymoneycontrol
