Stock Market Today: Top 10 things to know before the market opens on 21th August
The benchmark Sensex and Nifty indices are likely to open marginally higher on August 21 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 24 points.
The BSE Sensex dropped 202 points to close the previous session at 64,948 points, while the Nifty50 closed 55 points lower at 19,310 points, trading near its 200-day moving average of 19,594 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,267, followed by 19,238 and 19,192.
In case of an upside, 19,358 can be the key resistance, then 19,387 and 19,433.
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 24 points after the Nifty closed 55 points lower at 19,310 points on August 18.
GIFT Nifty futures stood at 19,348 points.
US Markets
US S&P 500 futures were little changed on Sunday night after another losing week for the major averages.
Futures tied to the broader index ticked up by 0.03 percent.
Dow Jones Industrial Average futures dipped 7 points, or by 0.02 percent.
Meanwhile, Nasdaq 100 futures rose 0.18 percent.
Palo Alto Networks jumped 11 percent in extended trading after reporting earnings results late Friday that topped analysts’ estimates. As of Friday’s close, the stock was down by 16 percent this month.
Investors are coming off a mixed session on Friday.
The Dow Jones Industrial Average added 25.83 points, or 0.07 percent higher.
Meanwhile, the S&P 500 edged down 0.01 percent, while the Nasdaq Composite fell 0.2 percent.
However, the major averages declined on a weekly basis in the midst of the summer doldrums on Wall Street.
The Nasdaq Composite closed the week lower about 2.6 percent, down for a third straight week for the first time since December. Meanwhile, the Dow closed the week lower by 2.2 percent, its worst streak since March.
And the S&P 500 dropped 2.1 percent and posted its third consecutive losing week, which hadn’t happened since February.
European Markets
European markets retreated on Friday, tracking cautious global sentiment as traders assess the future for monetary policy and fresh concerns about China’s real estate sector.
The pan-European Stoxx 600 index closed 0.6 percent lower, paring some of its earlier losses.
Mining stocks dipped 1.5 percent and retail stocks fell 1.2 percent as almost all sectors and major bourses slid into negative territory.
The European blue-chip index closed Thursday’s session down 0.9 percent after the US Federal Reserve’s July meeting minutes showed further interest rate hikes were not off the table.
European stocks on Friday look set to follow counterparts in Asia-Pacific, where markets fell across the board as investors assessed Japan’s July inflation print and embattled Chinese real estate giant Evergrande’s US bankruptcy filing.
The company sought protection under Chapter 15 of the US bankruptcy code, which shields non-US companies that are undergoing restructuring from creditors.
Stateside, US stocks traded lower after the major averages dropped for a third straight day on Thursday, with the Dow closing below the 50-day moving average — typically a bearish signal for investors — for the first time since June 1.
Wednesday’s Fed meeting minutes prompted the US 10-year Treasury yield on Thursday to rise to its highest level since October 2022.
Hong Kong’s benchmark stock index closed in bear market territory, down 2.1% in the Friday session and more than 20 percent below the highs of January, as uncertainty over China’s property market and growth prospects erase early-year gains.
Asian Markets
Asia-Pacific markets are largely up ahead of China’s announcement for its one-year and five-year loan prime rates on Monday.
The one-year and five-year LPR currently stands at 3.55 percent and 4.2 percent respectively.
Reuters reported that in a poll of 35 market watchers, all participants predicted cuts to both rates, after China’s central bank unexpectedly lowered the medium-term lending facility rate last week.
Futures for Hong Kong’s Hang Seng index stood at 17,794, pointing to a weaker open compared with its Friday close of 17,950.85.
That was the first time the index went below the 18,000 mark this year and the lowest it has been since November 2022.
In Australia, the S&P/ASX 200 slipped 0.13 percent, but other markets were all up.
Japan’s Nikkei 225 climbed 0.31 percent and the Topix rose 0.28 percent. South Korea’s Kospi gained 0.45 percent, while the Kosdaq was up 0.38 percent.
On Friday in the US, the three major indexes ended mixed, with the Dow Jones Industrial Average up 0.07 percent.
However, the S&P 500 was lower by 0.01 percent, and the Nasdaq Composite slipped 0.2 percent.
Both the S&P and Nasdaq recorded their third straight week of losses, something that has not happened since February for the S&P, and December for the Nasdaq.
Jio Financial Services lists today: Know about valuation, capital gains tax and more
Jio Financial Services, which was known as Reliance Strategic Investments before being hived off, will make its debut in the Dalal Street today.
While the stock’s discovered price was Rs 261.85, grey market trend suggests it could list on the bourses at Rs 300-310.
Investors have been allotted one share of JFS for every one share of Reliance Industries held by them.
After spending a month as a dummy stock following demerger from the parent, the JFS shares will finally become tradeable.
However, the scrip will be in trade-to-trade segment for the next 10 trading days. The symbol for Jio Financial Services stock is JIOFIN.
With over Rs 1.5 lakh crore of market capitalisation, Jio Financial Services will become the second largest listed NBFC in India. Its market cap will be greater than that of several Nifty 50 biggies like Britannia, Hero MotoCorp and Grasim Industries.
It will also have a higher market cap than IndusInd Bank, SBI Life and HDFC Life.
Bullish on India | This is India’s time under the sun: Piyush Goyal
This is India’s time in the sun to grow, invest and expand, Minister Piyush Goyal said, speaking on the sidelines of Moneycontrol’s Indian Family Businesses Awards.
“I believe this is India’s time under the sun with opportunities galore.
I effectively see no other opportunity that is as big as India for at least the next 30-35 years. I look at it as a 30-30-30 matrix.
We have a population that is below 30 years of age, and we will continue to have a young population for the next 30 years.
In these next 30 years, given the strong foundation that PM Modi has laid for the Indian economy, I believe we will add 30 trillion dollars to our economy,” he said.
He stressed that India’s story is currently unfolding, and the country will become the engine of growth for the world.
Moody’s affirms India’s Baa3 rating, but warns of political tensions
Moody’s Investors Service on August 18 affirmed its Baa3 rating on India and maintained the stable outlook, but warned of political issues and even cited the example of the ongoing violence in Manipur.
The curtailment of civil society and political dissent, compounded by rising sectarian tensions, support a weaker assessment of political risk and the quality of institutions,” Moody’s said in a statement.
Although elevated political polarization is unlikely to lead to a material destabilization of government, rising domestic political tensions suggest an ongoing risk of populist policies—including at the regional and local government levels—amid the prevalence of social risks such as poverty and income inequality, as well as inequitable access to education and basic services.
Moreover, the periodic flaring of border tensions with neighboring countries was an outlier among sovereigns assessed as having a lower overall susceptibility to political risk,” it added.
Mcap of seven of top 10 firms declines by Rs 80,200 crore; TCS, HDFC Bank biggest laggards
The combined market valuation of seven of the top 10 valued firms declined by Rs 80,200.24 crore last week amid a weak trend in equities, with Tata Consultancy Services and HDFC Bank emerging as the biggest laggards.
In a holiday-shortened last week, the BSE benchmark fell by 373.99 points or 0.57 percent.
In a holiday-shortened last week, the BSE benchmark fell by 373.99 points or 0.57 per cent.
From the top 10 pack, Reliance Industries, Hindustan Unilever and Infosys were the gainers while Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank, ITC, State Bank of India, Bharti Airtel and Bajaj Finance saw a decline in their valuation.
The market valuation of Tata Consultancy Services (TCS) tanked Rs 29,894.45 crore to Rs 12,32,240.44 crore.
HDFC Bank’s valuation declined by Rs 19,664.06 crore to Rs 12,02,728.20 crore.
The market valuation of Bajaj Finance eroded by Rs 12,233.5 crore to Rs 4,15,763.47 crore and that of ITC tumbled Rs 8,338.45 crore to Rs 5,50,821.26 crore.
Bharti Airtel’s market capitalisation (mcap) fell by Rs 8,081.38 crore to Rs 4,78,730.70 crore and that of State Bank of India dipped Rs 1,026.33 crore to Rs 5,11,424.89 crore.
The mcap of ICICI Bank diminished by Rs 962.07 crore to Rs 6,65,550.83 crore.
However, Hindustan Unilever added Rs 12,347.1 crore taking its market valuation to Rs 6,00,250.08 crore.
The mcap of Infosys jumped Rs 6,972.87 crore to Rs 5,76,379.26 crore and that of Reliance Industries climbed Rs 5,886.09 crore to Rs 17,29,764.68 crore.
GQG raises stake in Adani Ports to over 5%; investment in Adani firms now more than Rs 38,700 cr
US-based boutique investment firm GQG Partners has raised its stake in Adani Ports & Special Economic Zone (APSEZ) to over 5 per cent as it continues to bet on billionaire Gautam Adani’s group shrugging off market concerns.
The Fort Lauderdale, Florida-based GQG increased its stake in APSEZ from 4.93 per cent to 5.03 per cent by way of bulk deal, stock exchange filings showed. GQG now has a stake in five of the 10 Adani Group firms.
It on August 16 bought 7.73 per cent stake in Adani Power Ltd.
Promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold 8.09 percent stake in Adani Power through block deals on August 16. Of this, GQG bought 7.73 percent, filings showed.
After the stake sale, promoter holding in Adani Power declined to 66.88 percent from 74.97 percent.
The investment comes days after Deloitte quit as auditor of APSEZ, renewing investor concerns even as the group slowly recovers from the effects of a report by US short-seller Hindenburg Research.
The Hindenburg report released January 24 alleged accounting fraud, stock price manipulation and improper use of tax havens, triggering a stock market rout that had erased about USD 150 billion in the market value at its lowest point.
Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings and scaling back its pace of spending on new projects.
Oil Prices
Oil prices rose about 1 percent on Friday on signs of slowing US output, but both crude benchmarks also ended their longest weekly rally of 2023 on mounting concerns about global demand growth.
West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.1 percent, to settle at $81.25 a barrel, and Brent crude futures rose 68 cents, or 0.8 percent, to settle at $84.80 a barrel.
Both benchmarks pushed higher on Friday after industry data showed that the US oil and natural gas rig count, an early indicator of future output, fell for the sixth week in a row.
A slump in US production could exacerbate an anticipated supply tightness through the rest of this year.
Those concerns, spurred on by output cuts from the Organization of the Petroleum Exporting Countries and allies, helped oil prices gain for seven straight weeks since June.
Brent crude gained about 18 percent and WTI gained 20 percent over the seven weeks ended Aug. 11.
Dollar Index
The Dollar index traded 0.08 percent lower in futures at 103.35, whereas the value of one dollar hovered near Rs 83.16.
Gold Prices
Gold was little changed on Friday, but bullion was bound for its third straight weekly dip as recent sound U.S. economic data raised bets for interest rates staying higher for longer.
Spot gold was steady at $1,887.79 per ounce by 2:22 p.m. ET (1822 GMT), down 1.4 percent for the week so far. US gold futures settled 0.1 percent higher at $1,916.5.
“Gold’s got a problem where it’s competing with instruments that are yielding 4-5%”, such as bonds, while gold yields nothing in comparison, said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.
It just does not seem like an ideal asset class in the current environment.”
Gold may continue to struggle attracting demand from investors until something breaks, either through a credit event, a weaker dollar, or the belief the FOMC has switched its focus towards cutting rates,” said Saxo Bank’s head of commodity strategy Ole Hansen in a note.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 266.98 crore, whereas domestic institutional investors (DII) purchased Rs 339.18 crore worth of stocks on August 18, provisional data from the National Stock Exchange (NSE) showed.
Bymoneycontrol
