Stock Market Today: Top 10 things to know before the market opens on 9th August
Equity benchmark indices Sensex and Nifty are expected to open marginally higher on August 9 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 24 points.
The BSE Sensex lost 106 points to close the previous session at 65,846 points, while the Nifty50 closed 26 points lower at 19,570 points trading near its 200-day moving average of 19,591 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,541, followed by 19,517 and 19,478.
In case of an upside, 19,618 can be the key resistance, followed by 19,642 and 19,681.
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.
The GIFT Nifty indicates a flat to marginally positive start for the broader index with a gain of 24 points after Nifty closed 26 points lower at 19,570 points on August 8.
GIFT Nifty futures stood at 19,577 points.
US Markets
US stock futures changed little on Tuesday night, following a selloff for the major averages.
Dow Jones Industrial Average futures fell by 27 points, or 0.08 percent.
S&P 500 futures and Nasdaq 100 futures declined 0.06 percent each.
In extended trading, Penn Entertainment surged 12 percent after the casino company said it is launching an online sportsbook with ESPN, called ESPN Bet, this fall.
Investors are coming off a down session for the major averages Tuesday.
The Dow Jones Industrial Average closed 158.64 points lower, or 0.45 percent.
Still, that’s better than where the Dow was at session lows when it declined about 465 points.
Meanwhile, the S&P 500 fell by 0.42 percent, and the Nasdaq Composite slid 0.79 percent.
The selloff comes after Moody’s downgrade of several regional banks dampened investor sentiment Tuesday.
Some market participants were concerned the signal could spell more trouble for markets ahead, but others say the pullback is expected given the extraordinary rally in equities this year.
European Markets
European markets pulled back on Tuesday as investors braced for significant inflation data due later this week and reacted to a shock banking tax announcement out of Italy.
The pan-European Stoxx 600 index ended 0.2 percent lower, with banks shedding 2.7 percent to lead losses as most sectors slid into the red.
Healthcare stocks bucked the trend to add 3.2 percent.
Italian lenders took a hit from the government’s surprise announcement of a 40 percent windfall tax on banking profits, dragging down the banking sector.
The positive session for health care came after a strong drug trial result from Danish pharmaceutical firm Novo Nordisk.
The European blue-chip index closed Monday’s session up 0.1 percent as markets appeared to enter suspended animation after last week’s global pullback, as investors took profits near the end of earnings season and risk sentiment returned to focus.
Consumer price index releases are due from China on Wednesday and the United States on Thursday, with analysts expecting the former to report disinflation of 0.5 percent year-on-year, which would ease global price pressures but could signal that more fiscal stimulus is needed from Beijing.
FTSE closed 0.36 percent lower at 7,527 points and DAX closed 1.1 percent lower at 15,774 points on Tuesday.
Asian Markets
Asia-Pacific markets were mixed as investors look to China’s inflation figures for July, with the consumer price index predicted to enter deflationary territory for the first time since February 2021.
Economists polled by Reuters expect China’s inflation rate to fall 0.4 percent on-year.
The country’s producer price index which measures the change in selling prices received by domestic producers for their output — is also expected to fall 4.1 percent.
Futures for Hong Kong’s Hang Seng index stood at 19,084, pointing to a stronger open compared to compared to the HSI’s close of 19,184.17.
Japan’s Nikkei 225 slid 0.24 percent in early morning trade, while the Topix fell 0.3 percent.
In contrast, South Korea’s Kospi climbed 0.88 percent, while the Kosdaq was up 1 percent.
Australia’s S&P/ASX 200 was trading close to the flatline.
Overnight in the US, all three major indexes saw a selloff after Moody’s downgraded the credit rating on several regional banks, citing deposit risk, a potential recession and struggling commercial real estate portfolios.
The Dow Jones Industrial Average was down 0.45 percent, while the S&P 500 dipped 0.42 percent and the Nasdaq Composite pulled back by 0.79 percent.
At Rs 1.85 lakh crore, mutual funds see highest quarterly inflows in 4 years in April-June
The first quarter of financial year 2024 started on a positive note, as open-ended mutual funds saw net inflows of Rs 1,84,789 crore, the highest in four years, with the fixed-income segment witnessing the lion’s share of inflows.
As per the latest Morningstar India report, flows in open-ended funds started on a strong note during June quarter, with net inflows of Rs 1,23,613 crore in April, which dipped to Rs 59,879 crore in May and ended with a disappointing Rs 1,295 crore of inflows in June. Meanwhile, assets under management (AUM) of the industry stood at Rs 44.13 lakh crore as of June end, up 13 percent over the previous quarter.
Coal India Q1 results: Net profit declines 10% to Rs 7,941 crore, beats estimate
State-owned Coal India Limited (CIL) on August 8 reported a consolidated net profit of Rs 7,941.4 crore for the quarter ended June, down 10 percent compared to Rs 8,834.22 crore in the same quarter last year.
However, net profit for Q1FY24 beat analyst estimates.
According to an average of the standalone estimates from three brokerage firms, the company was expected to report a net profit of Rs 6,125 crore.
Revenue from operations came in at Rs 35,943.21 crore, rising 2.5 percent percent from Rs 35,092.17 crore in the year-ago quarter, the world’s largest coal miner said in an exchange filing.
The company’s total income increased 3.9 percent to Rs 37,521.03 crore in Q1FY24 from Rs 36,086.68 crore in the year-ago period. CIL’s total expenses in the first quarter increased 11.5 percent to Rs 26,745.68 crore from Rs 23,985.31 crore in the corresponding quarter of the previous fiscal.
EIH Q1 Results: PAT up 61% YoY at Rs 106 cr, consolidated revenue stands at Rs 522 cr
Hospitality chain EIH Limited, the flagship company of the Oberoi Group, reported consolidated revenue of Rs 522.6 crore for the June quarter of financial year 2024 up 26.7 percent year-on-year (YoY).
The hospitality chain reported a profit after tax (PAT) of Rs 106 crore in the first quarter of FY24 up 61 percent YoY.
We are delighted with the remarkable financial performance for the first quarter of FY24.
The significant growth in revenue and profitability reflects the dedication of our team and the enduring trust of our valued guests,” said Vikram Oberoi, CEO and MD, EIH.
The company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 180 crore up 53.1 percent YoY.
Oil Prices
Oil prices edged lower on Tuesday after data showed China’s crude imports and exports fell much more than expected in July in yet another sign of a sluggish post-COVID rebound for the world’s largest oil importer.
Brent crude futures were down 48 cents, or 0.41 percent, at $84.93 a barrel.
U.S. West Texas Intermediate crude dropped 50 cents, or about 0.62 percent, to $81.43.
Both contracts fell by $2 earlier in the session.
China’s July oil imports were down 18.8 percent from the previous month to the lowest daily rate since January, but still up 17 percent from a year earlier.
Overall, China’s imports contracted by 12.4 percent in July, far steeper than the expected 5 percent drop.
Exports fell by 14.5 percent, compared with a fall of 12.5 percent tipped by economists.
In India, fuel consumption slipped to a 10-month low in July, government data showed on Tuesday, as monsoon rains restricted mobility. India is the third-biggest oil importer and consumer.
Despite the gloomy data, some analysts were still positive on China’s fuel demand outlook for August to early October.
Dollar Index
The Dollar index traded 0.52 percent higher in futures at 102.57, whereas the value of one dollar hovered near Rs 82.88.
Gold Prices
Gold hit a four-week low on Tuesday as the dollar climbed after weaker-than-expected Chinese trade data, while caution in the run-up to U.S. inflation readings this week also kept appetite for zero-yield bullion subdued.
Spot gold was down 0.55 percent to $1,925.69 per ounce after hitting its lowest since July 11. US gold futures fell 0.5 percent to $1,960.10.
China’s weak trade data has resulted in a general risk-off sentiment.
The haven of choice today has been the greenback, which has put pressure on the precious metal,” said FXCM market specialist Russell Shor.
FIIs and DIIs
Foreign institutional investors (FII) offloaded shares worth Rs 711.34 crore, whereas domestic institutional investors (DII) bought Rs 537.31 crore worth of stocks on August 8, provisional data from the National Stock Exchange (NSE) showed.
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