Stock Market Today: Top 10 things to know before the market opens on 23rd August
The benchmark Sensex and Nifty indices are likely to open marginally higher on August 23 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 24 points.
The BSE Sensex gained 4 points to close the previous session at 65,220 points, while the Nifty50 closed 3 points higher at 19,396 points, trading near its 200-day moving average of 19,589 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,383, followed by 19,369 and 19,345.
In case of an upside, 19,431 can be the key resistance, then 19,446 and 19,469.
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
he GIFT Nifty indicates a marginally positive start for the broader index with a gain of 24 points after the Nifty closed 3 points higher at 19,396 points on August 22. GIFT Nifty futures stood at 19,337 points.
US Markets
Stock futures are near flat Tuesday night as investors awaited on the latest crop of corporate earnings reports from well-known names including Nvidia.
Dow Jones Industrial Average futures added 22 points, or 0.1 percent. S&P 500 and Nasdaq 100 futures also each climbed 0.1 percent.
Retail stocks had been weak in Tuesday’s session, but Urban Outfitters shares were more than 5 percent higher in extended trading on the back of a better-than-expected quarterly report.
But La-Z-Boy slumped more than 1 percent as management said furniture sales will “remain challenged.”
Those results precede a bevy of household names set to report Wednesday.
Retail stocks Peloton, Foot Locker, Kohl’s and Abercrombie & Fitch are due before the bell, followed by artificial intelligence stock Nvidia and fellow technology company Snowflake after the market closes.
The moves follow a mixed session on Wall Street. The S&P 500 and Dow slid around 0.3 percent and 0.5 percent, respectively.
But the Nasdaq Composite eked out a 0.06 percent advance.
The tech-heavy index was able to post a second day of gains despite selling pressure as investors readied for earnings from Nvidia, which was the biggest laggard on the index in Tuesday’s session.
European Markets
European stock markets were higher Tuesday after posting cautious gains to start the week.
The Stoxx 600 index ended 0.7 percent higher, paring earlier gains. All sectors were higher as technology stocks led the pack, up 2 percent.
French game publisher Ubisoft Entertainment rose 9 percent after Microsoft said it would divest several gaming rights to the company as part of a new deal submitted to the UK regulators for its takeover of Activision Blizzard.
During overnight trade, bond selling sent the benchmark 10-year US Treasury note yield to its highest level since 2007, as the 30-year yield hit its highest level since 2011. Higher bond yields generally mean lower stock prices.
If there is a further downside risk to equities over the coming months, I would say it’s coming from bond yields at these kinds of levels,” Rupert Thompson, chief economist at Kingswood Group, told CNBC’s “Squawk Box Europe.”
Cash is now yielding 5 percent in the States, short-dated bonds are yielding 5 percent plus, so equities for the first time in a long time have actually got some real competition.”
Asian Markets
Asia-Pacific markets are set to fall, reversing gains markets made across the board on Monday.
This comes as investors assess private business activity surveys from Australia and Japan, as well as inflation figures from Singapore.
In Australia, the S&P/ASX 200 inched down marginally.
Australia’s business activity contracted at the fastest pace in 19 months, according to Juno Bank, with the composite purchasing managers index coming in at 47.1 for August.
Japan’s Nikkei 225 also fell ahead of its August PMI figures, down 0.3 percent, while the Topix slipped 0.36 percent.
Meanwhile, South Korea’s Kospi fell 0.27 percent, and the Kosdaq dropped 0.32 percent.
Futures for Hong Kong’s Hang Seng index stood at 17,655, pointing to a weaker open compared to the HSI’s close of 17,791.01.
SBI sees India’s GDP growing 8.3% in April-June, 6.7% in FY24
The Indian economy may have grown by 8.3 percent in April-June, according to Soumya Kanti Ghosh, State Bank of India’s group chief economic advisor, who also sees growth for the full-year ending March 2024 exceeding the 6.5 percent forecast by the government and the Reserve Bank of India (RBI).
At SBI, we have developed an Artificial Neural Network (ANN) model with 30 high-frequency indicators On the basis of the ANN model, we forecast that the quarterly GDP growth for the Q1FY24 (April-June 2023) would be at 8.3 percent,” Ghosh said in a report on August 22.
At 8.3 percent, SBI’s growth forecast for April-June will be the highest in four quarters.
The economy had expanded by 13.1 percent in April-June 2022 due to a favourable base effect.
This effect is still in play, but gradually fading away.
GDP data for April-June will be released at 5:30pm on August 31. According to the RBI’s latest forecast, GDP growth may have risen to 8 percent in April-June from 6.1 percent in January-March.
The January-March GDP growth number was far higher than economists’ expectations of 5.1 percent.
The market regulator ordered Brightcom Group (BGL) to ensure that statutory auditors of the company P. Murali & Co. and PCN & Associates, including their past and present partners, are not engaged with BGL or its subsidiaries in any capacity or manner whatsoever, until further orders.
The interim order was passed on August 22, because the regulator believes that an “urgent intervention” is warranted, and the order noted that this is perhaps the first time the Securities and Exchange Board of India (Sebi) has issued a second interim order on the same entity.
SEBI has already issued an Interim Order-cum-Show Cause Notice dated April 13, 2023, to BGL and other persons, including the company’s Chairman and Managing Director (CMD) Suresh Kumar Reddy (who is a Noticee in this latest order) after investigations revealed several instances of accounting irregularities and mis-statements in the financials of the company.
The latest interim order (of August 22) on the preferential allotment stated that findings “clearly” showed “manipulations carried out by BGL and other Noticees (24 of them), in respect of BGL’s preferential allotments, which inter alia involve fictitious receipts of share application money from allottees and siphoning of funds from BGL”.
FILA-backed Doms Industries files draft papers with SEBI, to raise Rs 1,200 crore via IPO
Italian company FILA-backed stationery and art products maker Doms Industries filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on August 22, with an aim to raise Rs 1,200 crore via an initial public offering.
The public issue comprises a fresh issuance of shares worth Rs 350 crore and an offer-for-sale of Rs 850 crore by promoters.
FILA- Fabbrica Italiana Lapised Affini S.p.A. is the corporate promoter in the company with 51 percent shareholding, offloading shares worth Rs 800 crore via OFS, while domestic promoter Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will be selling shares worth Rs 25 crore each via OFS.
The Gujarat-based company manufacturing and selling products under DOMS brand may consider a pre-IPO placement of Rs 70 crore prior to the filing of the red herring prospectus with the ROC.
If the pre-IPO placement is completed, the size of the fresh issue will be reduced to the extent of such pre-IPO placement, the company said in its prospectus.
Vistara posts net loss of Rs 1,393 crore for 2022-23 despite revenues doubling
Tata SIA Airlines Ltd or Vistara said that its net loss for the year 2022-23 came in at Rs 1,393 crore around 31.4 percent lower than the Rs 2,031 crore net loss reported in 2021-22, the airline said in a regulatory filing with the Ministry of Corporate Affairs.
The fall in the airline’s net loss was mainly due to its topline or revenue from operations doubling in 2022-23 compared to Rs 11,784 crore in the previous financial year, the airline said.
Despite the rise in topline, the airline’s net worth fell to Rs 502 crore at the end of 2022-23 compared to Rs 1,250 crore at the end of 2021-22.
As part of the filling, Vistara said that the Indian aviation industry bounced back strongly in 2022-23 surpassing even pre-Covid levels.
Hindalco to invest Rs 2,000 crore for first-ever copper and e-waste recycling facility: KM Birla at AGM
Hindalco Industries will be investing up to Rs 2,000 crore to set up a “first of its kind” of copper and e-waste recycling unit in India, announced Kumar Mangalam Birla, the company’s chairman, while addressing its 64th annual general meeting (AGM) on August 22.
“I am delighted to announce that your company is making an investment of Rs 2,000 crore to establish the first of its kind Copper and E-waste recycling facility in India.
This move addresses the mounting challenge posed by e-waste, recognized as the foremost waste stream on a global scale,” Birla said in his keynote address.
At present, due to lack of advanced metal extraction and refining technologies domestically, a substantial volume of e-waste – considered as the foremost waste stream on a global scale – is exported to other nations, he pointed out.
“Bringing this cutting-edge technology to India marks a transformative step towards offering a tangible solution, aligned with your Company and our nation’s circular economy agenda,” the Hindalco chief noted.
Piramal Enterprises board approves public issue of NCDs up to Rs 3,000 crore
Piramal Enterprises on August 22 announced that its board has given the nod for the public issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) worth up to Rs 3,000 crore.
the Committee approved the public issuance of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (‘Debentures’) of the face value of Rs 1,000 each for an amount aggregating up to Rs 3,000 crore in one or more tranches,” the financial services company said in a regulatory filing.
The company’s regulatory filing did not provide information regarding the commencement date for subscription to the public issue.
Oil Prices
Oil prices steadied on Tuesday as investors remained downbeat on China’s economic malaise hobbling demand from the world’s top crude importer, limiting the impact of supply cuts.
US West Texas Intermediate inched 13 cents higher to $80.85 a barrel, while Brent crude traded 9 cents higher at $84.55 a barrel.
The front-month WTI contract that expires shortly was down 4 cents at $80.68 a barrel on a very limited volume of trades.
China, the world’s second-largest economy, is seen as key to shoring up oil demand over the rest of the year.
But the country’s sluggish economic activity has frustrated markets after a post-COVID reopening boost, while authorities’ pledges to aid recovery have so far fallen short of expectations, including a smaller-than-expected cut in a key lending benchmark on Monday.
“China’s economic weakness … will create a ceiling for them this year, especially as Beijing appears committed to avoiding large-scale fiscal stimulus,” Eurasia Group said in a note.
Amplifying demand concerns is the possibility of another rate hike in the United States, the world’s biggest oil consumer, which central bank officials have not ruled out given persistent inflation.
Dollar Index
The Dollar index traded 0.28 percent higher in futures at 103.59, whereas the value of one dollar hovered near Rs 83.04.
Gold Prices
Gold prices gave up early gains to hover near a five-month low on Tuesday, as a stronger dollar and higher bond yields dented bullion’s appeal as focus shifts to the Jackson Hole Symposium for more cues on the interest rate outlook.
Spot gold was down 0.2 percent at $1,890.39 an ounce after rising as much as 0.6 percent earlier in the session.
US gold futures gained 0.4 percent to $1,930.90.
The dollar rose 0.2 percent, making gold more expensive for holders of other currencies, while benchmark 10-year US Treasury yields scaled levels not seen since November 2007.
Gold prices fell to their lowest level since March last week as strong US economic data boosted bets that US interest rates would stay higher for longer.
Higher rates increase bond yields, making non-yielding bullion less attractive.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 495.17 crore, whereas domestic institutional investors (DII) purchased Rs 533.75 crore worth of stocks on August 22, provisional data from the National Stock Exchange (NSE) showed.
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