Stock Market Today: Top 10 things to know before the market opens on 21th July
The market is likely to see a flat opening as the GIFT Nifty indicates a muted start for the broader index, with a gain of 14 points at 19,872.50.
On July 20, Sensex was up 474.46 points or 0.71 percent at 67,571.90, while the Nifty was up 146 points or 0.74 percent at 19,979.20.
The pivot point calculator suggests that the Nifty may get support at 19,821 followed by 19,766 and 19,676.
In case of an upside, 19,999 can be a key resistance area followed by 20,054 and 20,143.
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 14 points on Friday. The futures stood at 19,872.50.
US Markets
The S&P 500 and Nasdaq fell on Thursday, weighed down by drops in Tesla and Netflix following their quarterly results, but the Dow advanced for a ninth straight day thanks to gains in Johnson & Johnson following a strong annual forecast.
Tesla’s shares tumbled 9.74 percent, its biggest one-day percentage drop since April 20, after the electric-vehicle maker reported a drop in its second-quarter gross margins to a four-year low and CEO Elon Musk hinted at more price cuts.
Netflix slumped 8.41 percent to suffer its biggest one-day percentage decline since December 15, after the streaming video company’s quarterly revenue fell short of estimates.
The Dow Jones Industrial Average rose 163.97 points, or 0.47 percent, to 35,225.18, the S&P 500 lost 30.85 points, or 0.68 percent, to 4,534.87 and the Nasdaq Composite dropped 294.71 points, or 2.05 percent, to 14,063.31.
Asian Markets
Asia-Pacific markets fell on Friday as investors digested Japan’s consumer price index figures for June.
The country’s core inflation rate – which strips out costs of fresh food – came in at 3.3 percent, in line with expectations of economists polled by Reuters, official data showed.
RIL Q1 net profit seen at Rs 16,995 crore
Reliance Industries Ltd (RIL) is expected to report muted earnings in the first quarter of 2022-23 despite steady consumer growth as it may be partly offset by a decline in its oil-to-chemical (O2C) business, analysts said.
According to a Bloomberg survey of 14 brokerages, RIL’s consolidated net sales are expected to come in at Rs 2.14 lakh crore and net profit is estimated at Rs 16,995.50 crore according to seven brokerages.
The company is scheduled to report its June quarter earnings on July 21.
“EBITDA to marginally increase by 1 percent quarter-on-quarter to Rs 38,800 crore, with O2C EBITDA down 4 percent to Rs 15,600 crore on lower GRMs, partly offset by a recovery in the petchem margins.
We expect net subscriber addition of 6.5 million for Jio, with a 1 percent higher ARPU at Rs 180.
Retail EBITDA should be up 2 percent QoQ to Rs 5,000 crore, while upstream EBITDA would be largely flat.
We estimate consolidated adjusted PAT, after JPL-RRVL MI, to decline 14 percent to Rs 16,500 crore, on higher ETR quarter on quarter at 22 percent,” said Emkay Research in a note to investors.
HUL Q1 disappoints on weak demand, volume growth at 3%
Hindustan Unilever Limited (HUL) on July 20 reported a standalone net profit of Rs 2,472 crore for the June quarter of FY24, registering a growth of 8 percent from Rs 2,289 crore in the same quarter of the previous financial year.
However, the company reported a 10 percent fall in profit sequentially from Rs 2,552 crore in the previous quarter.
The total revenue of the company is Rs 15,333 crore, rising 6.4 percent from Rs 14,016 crore in the year-ago quarter, the FMCG major said in a regulatory filing.
Net profit and revenue missed estimates.
According to a poll of brokerages, HUL’s Q1 revenue was seen at Rs 15,477 crore while net profit was Rs 2,581 crore. Read More
Infosys slashes FY24 revenue guidance to 1-3.5%, profit increases 11% YoY
India’s second-largest IT company Infosys slashed its revenue guidance for the fiscal to 1-3.5 percent from 4-7 percent, amid an increasingly challenging demand environment.
It reported an 11 percent increase YoY in its net profit to Rs 5,945 crore in the first quarter of the 2024 fiscal. Infosys, which posted its results on July 20, saw its profit miss market expectations.
Its consolidated revenue increased 10 percent YoY to Rs 37,933 crore, while its operating margin came in at 20.8 percent, down from last quarter’s 21 percent.
While the IT major slashed its FY24 revenue guidance to 1.0-3.5 percent, it maintained operating margin guidance at 20-22 percent.
Operating margins declined by 20bps and came in at 20.8 percent.
Crude Price gain
Brent oil prices were little changed on Friday and were set to close flat for the week after three straight weeks of gains, as markets weigh lower U.S. crude inventories and tapering interest rate hikes against weak Chinese economic data that could cap demand.
Brent futures rose 3 cents to $79.67 a barrel by 0016 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 9 cents to $75.74 a barrel. Prices closed marginally higher on Thursday.
Brent was on track to close down 0.2 percent for the week, while WTI was set to tick up 0.4 percent. Both benchmarks had gained for three consecutive weeks.
Gold Price Updates
Gold prices slipped from a two-month high on Thursday as the dollar and bond yields ticked higher, although hopes for a pause in rate hikes by the U.S. Federal Reserve after the July meeting limited the decline.
Spot gold was down 0.4 percent at $1,969.53 per ounce by 1:42 p.m. EDT (1742 GMT) after hitting its highest since May 17 earlier in the session.
U.S. gold futures settled 0.5 percent lower at $1,970.90.
FIIs and DIIs
Foreign institutional investors (FII) have bought shares worth Rs 3,370.90 crore, whereas domestic institutional investors (DII) sold shares worth Rs 193.02 crore on July 20, provisional data from the National Stock Exchange (NSE) shows.
Stocks under F&O ban on NSE
The NSE has added Balrampur Chini Mills, and Punjab National Bank to its F&O ban list for July 21, while retaining Delta Corp, Indiabulls Housing Finance, L&T Finance Holdings, Manappuram Finance, and RBL Bank. 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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