Stock Market Today: Top 10 things to know before the market opens on 24th August
The benchmark Sensex and Nifty indices are likely to open marginally higher on August 24 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 5 points.
The BSE Sensex gained 213 points to close the previous session at 65,433 points, while the Nifty50 closed 48 points higher at 19,444 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 19,387, followed by 19,362 and 19,322.
In case of an upside, 19,468 can be the key resistance, followed by 19,493 and 19,533.
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 5 points after the Nifty closed 48 points higher at 19,444 points on August 23. GIFT Nifty futures stood at 19,509 points.
Trade setup for Thursday: Top 15 things to know before the opening bell
US Markets
Stock futures ticked higher on Wednesday, with investors focusing on key second-quarter results from chipmaker Nvidia to gauge whether the AI excitement is more than just hype.
S&P 500 futures climbed 0.5% while Nasdaq 100 futures gained 0.7%.
Futures tied to the Dow Jones Industrial Average was little changed.
All eyes on Wall Street were keenly awaiting Nvidia’s second-quarter results after the closing bell, and it didn’t disappoint.
The company earned $2.70 per share after adjustments on $13.51 billion in revenue.
That topped the average analyst estimate from Refinitiv of $2.09 per share in profits and $11.22 billion in revenue.
Nvidia’s stellar first-quarter report in May had helped stoke investor interest in artificial intelligence, which became a key market driver in the first half of the year.
Interest in the chip stock catapulted its value to more than $1 trillion.
Nvidia once again raised its forecast, with executives predicting third-quarter revenue would climb to $16 billion, or an increase of 170% on an annual basis.
The entire tech sector and overall market was waiting for Nvidia with this being the purest and best barometer for AI demand and the results/guidance were a ‘drop the mic’ moment in our opinion that will have a ripple impact for the tech space for the rest of the year,” said Dan Ives, senior equity research analyst at Wedbush Securities.
Elsewhere, the broader field of semiconductor stocks were also trading higher in after-hours trading. Shares of Taiwan Semiconductor added 3.1%, while AMD climbed nearly 4%. Marvell Technology gained 5.4%.
European Markets
European stock markets closed higher Wednesday, with attention focused on earnings and central bank comments in the U.S. The pan-European Stoxx 600 index ended up 0.4%, with most sectors and major bourses in positive territory.
Utilities stocks led the gains, up 1.1% as oil and gas stocks fell 1.1%.
Autos stocks ended the session down around 0.5% after the release of grim PMI figures for Germany, which showed a deepening downturn in manufacturing output and plunge in business activity.
The euro was lower against the U.S. dollar and bonds rallied as PMIs also came in well below expectations for the euro zone, as services activity fell into decline.
Globally, investors will be poring over California-based chip designer Nvidia’s results to see how it performs against high Wall Street expectations after a stellar first quarter, with analysts expecting volatility in the stock.
The company’s shares have soared nearly 200% this year on the buzz around its uses within artificial intelligence.
Asian Markets
Asia-Pacific markets rose ahead of central bank rate decisions from South Korea and Indonesia, although both central banks are expected to hold their benchmark policy rates unchanged at 3.5% and 5.75% respectively.
South Korea’s producer price index climbed 0.2% year-on-year, the 13th straight month that growth in the PPI has slowed. Investors will also be assessing chipmaker’s Nvidia’s earnings that were released early Thursday.
The company beat estimates for the fiscal second quarter and issued optimistic guidance for the current period.
Japan’s Nikkei 225 opened 0.44% up, while the Topix climbed 0.13% on Thursday.
In Australia, the S&P/ASX 200 started the day 0.42% higher, while South Korea’s Kospi rose 1.04% and the Kosdaq was up 1.55%.
Futures for Hong Kong’s Hang Seng index stood at 17,973, pointing to a stronger open compared with the HSI’s close of 17,845.92.
Chandrayaan-3 mission: Indian space tech startups hail ISRO for historic feat
Taking cognizance of the historic feat of India in becoming the first country in the world to land a spacecraft (Chandrayaan-3) successfully on the Moon’s South Pole, Indian space startups and bodies representing such startups, are lauding the Indian Space Research Organization (ISRO) for this momentous achievement.
Indian Space Association, which represents around 30 Indian space tech start-ups, apart from bigger players such as major players such as Bharti Airtel, L&T, and OneWeb said that this achievement will help in establishing a lunar economy and encouraging broader celestial exploration.
We applaud ISRO on the successful landing of the Chandrayaan-3 which shows India’s strong spirit of space exploration and our prowess in the space domain,” Lt Gen AK Bhatt (retd.), Director General, Indian Space Association said.
QIA to invest $1 billion in Reliance Retail for 0.99% stake; valuation at $100 billion
The Qatar Investment Authority (QIA) will invest $1 billion or Rs 8,278 crore in Reliance Retail Ventures Ltd (RRVL) to pick up a stake of nearly one percent, as per a release issued by the retail arm of Reliance Industries Ltd (RIL) on August 23.
The investment values the company at a pre-money equity value of $100 billion or Rs 8.27 lakh crore, RRVL stated, adding that QIA’s investment will translate into a minority equity stake of 0.99 percent on a fully-diluted basis”.
RRVL director Isha Ambani said the investment is a “strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities.
The company will benefit from QIA’s “global experience and strong track record of value creation”, she added.
For this transaction, Morgan Stanley acted as financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels for the company, the release noted.
AZB and Cleary Gottlieb acted as legal counsel for QIA.
Powell Is Using Jackson Hole as Final Push in Inflation Fight
Federal Reserve Chair Jerome Powell is expected to map out final steps in the US central bank’s campaign to tame inflation, and reinforce its commitment to finishing the job, when he speaks Friday in Jackson Hole, Wyoming.
While the address may not contain the same drama as keynotes in recent years, Powell’s speech at the Fed’s annual confab of global central bankers comes as policymakers enter what he’s called the most difficult stage of the inflation fight — calibrating how much more tightening is needed, with little certainty about how their actions have affected the economy so far.
Until recently, the way forward had been clear: Keep raising interest rates to bring the fastest inflation in four decades under control. Now, as inflation continues to cool, disagreements among policymakers are emerging over how much more work is left to do.
Powell will likely use his platform this week to outline how the Fed will assess whether rates should go higher and determine when it’s time to start cutting them.
Goldman Sachs sees India IT growth pick up in medium-term; initiates coverage
Goldman Sachs sees revenue growth for India’s IT sector companies picking up, driven by pent-up demand for IT services and the impact of adopting generative artificial intelligence (AI) tech.
The Wall Street bank forecast a 9%-10% revenue growth from 2025, saying the market could be under-appreciating the sector’s upside, even though near-term revenue is likely to remain “muted”.
Indian IT services companies have doubled their market share in the last 10 years,” analysts at Goldman Sachs led by Manish Adukia wrote in a note dated Tuesday.
Given the structural advantages of a large, skilled and low-cost workforce, coupled with a diversified geographical footprint, we expect Indian IT firms to continue gaining share.”
Adani group shares lose about Rs 5 lakh crore market cap
Adani group shares lost almost Rs 5 lakh crore market capitalization on August 23 with all scrips ending in the red.
While Adani companies went down, the Nifty ended up in the green, rising by 0.25 percent to 19,444 points.
The total market capitalization of Adani group shares was Rs 114.78 lakh crore on August 22 and it ended up at Rs 109.33 lakh crore on August 23.
Adani Enterprises ended up 5.9 percent in the red to Rs 2,539 while Adani Ports went down nearly 3 percent to Rs 830.05.
Adani Power went down 6.65 percent to Rs 324.30 while Adani Energy went down to Rs 905.45.
Shares of ACC and Adani Wilmar fell the least with 0.42 percent and 0.92 percent respectively.
Price stability essential for maintaining growth, says RBI Governor Shaktikanta Das
The Reserve Bank of India (RBI) Governor Shaktikanta Das on August 23 said price stability is essential for maintaining the economic growth of the country.
Price stability has to be the basis of sustainable growth. Without price stability, any growth which you try to achieve in the short term will only have a short life.
So, price stability is absolutely essential for maintaining the momentum of growth and sustaining the country’s GDP growth,” Das said.
Das was speaking at the 29th Lalit Doshi Memorial Lecture on ‘Building Blocks for a Sustainable Future: Some Reflection.
He further said that the Reserve Bank’s macroeconomic and monetary policy has focused on maintaining price stability, ensuring adequate flow of credit to sustain the growth momentum, and securing financial stability.
Oil Prices
Oil prices dipped on Wednesday as demand woes stemming from a build in U.S. gasoline stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in U.S. crude stocks.
Brent crude was down 56 cents, or 0.7%, at $83.48 a barrel, bouncing off a 2.5% decline earlier in the session. U.S. West Texas Intermediate crude was down 45 cents, or 0.6%, at $79.20. At the session low it was down 3.4%.
U.S. gasoline stocks climbed 1.5 million barrels last week, compared with analysts’ estimates for a 888,000-barrel drop.
Meanwhile, U.S. crude inventories fell by 6.1 million barrels in the week to Aug. 18, the Energy Information Administration said, helped by strong refining activity and high levels of exports.
Analysts had expected a 2.8-million-barrel drop.
Dollar Index
The Dollar index traded 0.21 percent lower in futures at 103.34, whereas the value of one dollar hovered near Rs 82.54
Gold Prices
Gold prices jumped to a near two-week high on Wednesday, helped by a pullback in U.S. bond yields and the dollar as investors looked ahead to the Jackson Hole symposium for guidance on interest rates.
Spot gold rose 1% to $1,916.10 per ounce by 11:25 a.m.
EDT (1524 GMT), after hitting its highest since Aug. 11. U.S. gold futures also climbed 1% to $1,945.50.
FIIs and DIIs
Foreign institutional investors (FII) bought shares worth Rs 614.32 crore, while domestic institutional investors (DII) purchased Rs 125.03 crore worth of stocks on August 23, provisional data from the National Stock Exchange (NSE) showed.
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