Stock Market Today: Top 10 things to know before the market opens on 18th july
The market is likely to open on a flat note as the GIFT Nifty indicates a muted start for the broader index, with a gain of 6 points after opening the session at 19,785.50.
On July 17, the Sensex was up 529.03 points or 0.80 percent at 66,589.93, and the Nifty was up 147 points or 0.75 percent at 19,711.50.
The pivot point calculator suggests that the Nifty may get support at 19,604 followed by 19,564 and 19,500.
In case of an upside, 19,733 can be a key resistance area, followed by 19,773 and 19,838.
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 flat start for the broader index with a gain of 6 points on Tuesday.
The futures stood at 19,785.50.
US Markets
US stocks traded in the green on Monday on expectations that corporate earnings will exceed forecasts, but global shares and the dollar traded little changed after data showed the Chinese economy grew slower than anticipated.
China overnight reported growth of 0.8 percent in the second quarter, above the 0.5 percent forecast, but the annual pace was 6.3 percent, well below expectations for a reading of 7.3 percent.
The data indicates China’s post-Covid boom is over, analysts said.
But fears earlier in the year of a US hard-landing have lessened as slower consumer inflation has brightened the outlook on Wall Street as companies begin to report second-quarter results.
Inflation, however, is still above the Federal Reserve’s 2 percent target.
The tech-heavy Nasdaq led US stocks higher, supported by megacap growth stocks including Apple, Nvidia and Tesla, ahead of quarterly results from industry heavyweights later this week.
On the Wall Street, the Dow Jones Industrial Average gained 0.22 percent, the S&P 500 was up 0.39 percent and the Nasdaq Composite added 0.93 percent.
Asian Markets
Asia-Pacific markets were mixed on Tuesday as investors await the release of minutes of the Reserve Bank of Australia’s July policy meeting.
In Australia, the S&P/ASX 200 opened down 0.25 percent, while Japan’s Nikkei 225 climbed 0.81 percent and the Topix 0.76 percent as the local market braced for key economic data later this week, including trade balance and consumer price index.
South Korea’s Kospi slipped marginally, but the Kosdaq was up 0.76 percent as the country holds its first Nuclear Consultative Group meeting with the US today.
European Markets
European stock markets closed lower Monday as a positive run faltered.
The regional Stoxx 600 index closed 0.6 percent lower, with most sectors and major bourses declining.
Household goods stocks were 2.6 percent lower as bank stocks climbed 0.5 percent.
China’s frail Q2 GDP growth raises urgency for more policy support
China’s economy grew at a frail pace in the second quarter as demand weakened at home and abroad, with the post-Covid momentum faltering rapidly and raising pressure on policymakers to deliver more stimulus to shore up activity.
The Chinese authorities face a daunting task in trying to keep the economic recovery on track and putting a lid on unemployment, as any aggressive stimulus could fuel debt risks and structural distortions.
Gross domestic product grew just 0.8 percent in April-June from the previous quarter, on a seasonally adjusted basis, data released by the National Bureau of Statistics showed on Monday, versus analysts’ expectations in a Reuters poll for a 0.5 percent increase and compared with a 2.2 percent expansion in the first quarter.
On a year-on-year basis, GDP expanded 6.3 percent in the second quarter, accelerating from 4.5 percent in the first three months of the year, but the rate was well below the forecast for growth of 7.3 percent.
Dollar trades in the red
The dollar dipped against a basket of currencies on Monday after last week suffering its largest weekly decline this year as Treasury yields tumbled, but held above more than one-year lows reached on Friday with no major catalysts to drive market direction.
This week is likely to see the dollar consolidate as investors wait on the Federal Reserve’s meeting next week, when the U.S. central bank is expected to hike rates by an additional 25 basis points.
Crude prices look up
Oil prices edged higher in early trade on Tuesday after sinking in the previous session on weaker-than-expected Chinese economic growth, as investors eyed a possible tightening of U.S. crude supplies.
Brent crude gained 11 cents to $78.61 a barrel by 0017 GMT, while U.S. West Texas Intermediate crude rose 15 cents to $74.30 a barrel.
Both contracts fell more than 1.5 percent on Monday.
Gold stays firm
Gold prices were little changed on Monday, with bullion traders still doubtful about whether the Federal Reserve may soon signal an end to its monetary tightening path.
Spot gold was steady at $1,953.91 per ounce at 1:42pm EDT (1742 GMT). US gold futures settled 0.4 percent lower at $1,956.40.
The dollar hovered near a more than one-year low, making gold less expensive for other currency holders.
FIIs and DIIs on buying binge
Foreign institutional investors (FII) net bought shares worth Rs 73 crore, while domestic institutional investors (DII) net purchased shares worth Rs 64.34 crore on July 17, provisional data from the National Stock Exchange (NSE) shows.
Stocks under F&O ban on NSE
The NSE has retained Delta Corp, Indiabulls Housing Finance, Manappuram Finance, and RBL Bank to its F&O ban list for July 18. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
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