Trends on SGX Nifty indicate a cautious opening for the index in India with a 8 points gain.
The Indian stock market is expected to open flat as trends on SGX Nifty indicate a cautious trade for the index in India with a 8 points gain.
The BSE Sensex slipped 135.05 points to close at 52,443.71, while the Nifty50 fell 37.10 points to 15,709.40 ahead of the expiry of July futures and options contracts on July 28 and formed a Hammer pattern on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 15,559.43, followed by 15,409.47. If the index moves up, the key resistance levels to watch out for are 15,813.43 and 15,917.47.
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:
US Markets
U.S. stocks and the dollar slipped on Wednesday in listless trade after the Federal Reserve gave no clue about when it might start reducing its purchases of government bonds, even as it said the economic recovery is on track.
The Dow Jones Industrial Average fell 0.36%, the S&P 500 was flat, while the tech-focused Nasdaq Composite rebounded 0.7% after hitting its lowest in more than two months on Tuesday.
Asian Markets
Shares in Hong Kong continued to see a rebound in Thursday morning trade from a two-day slump earlier in the week. Meanwhile, Asia-Pacific markets rose after the U.S. Federal Reserve left its benchmark interest rate near zero.
In Japan, the Nikkei 225 advanced 0.51% while the Topix index gained 0.26%. Elsewhere, South Korea’s Kospi rose fractionally while the S&P/ASX 200 in Australia climbed 0.47%.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 8 points gain. The Nifty futures were trading at 15,715 on the Singaporean Exchange around 07:30 hours IST.
Fed says economic recovery remains on track despite COVID-19 surge
The U.S. economic recovery is still on track despite a rise in coronavirus infections, the Federal Reserve said on Wednesday in a new policy statement that remained upbeat and flagged ongoing talks around the eventual withdrawal of monetary policy support.
In a news conference following the release of the statement, Fed Chair Jerome Powell said the U.S. job market still had “some ground to cover” before it would be time to pull back from the economic support the U.S. central bank put in place in the spring of 2020 to battle the coronavirus pandemic’s economic shocks.
The Union Cabinet, on July 28, cleared the Deposit Insurance and Credit Guarantee Corporation (Amendment Bill), Finance Minister Nirmala Sitharaman said. The Finance Minister said that as per the bill, depositors of troubled banks would get back amounts below Rs 5 lakh within 90 days, even if a bank is put under moratorium by the Reserve Bank of India.
Addressing a media briefing after the cabinet meeting, Sitharaman said that the bill increases deposit insurance coverage and reduces the time taken for depositors to recover sums if a bank comes under financial stress.
“This decision will give relief to depositors whose banks are already under moratorium. We will be nearly covering 98.3 percent of all depositors,” Sitharaman said, adding that the bill will be tabled in Parliament in this session itself.
Markets regulator SEBI is contemplating reforms in the IPO norms, especially on the book building, fixed price aspects and certain provisions pertaining to price band, its chief Ajay Tyagi said on Wednesday. Apart from initial public offer (IPO), the regulator is looking into further reforms on preferential issue front, Tyagi said at the FICCI’s annual Capital Market Conference.
“We have few other proposals in pipeline that are in the early discussion stage IPO reforms on the book building and fixed price framework and provisions relating to price band and further reforms on preferential issue- being some of them,” Tyagi said.
Lok Sabha, the lower house of the Parliament on July 28 passed the Insolvency and Bankruptcy Code (Amendment) Bill 2021. Finance minister Nirmala Sitharaman on Monday tabled the Bill in Lok Sabha. However, it could not be passed then because of disruption in the House.
As per these amendments, the government has notified the threshold of a default not exceeding Rs 1 crore for initiation of a pre-packaged resolution process. It remains unchanged.
Specialty chemical company Tatva Chintan Pharma Chem is expected to double investors’ money on listing over the issue price. Experts feel the company’s healthy financials with strong return ratios, diversified product portfolio, global presence with wide customer base and overwhelming response to IPO could drive up the listing price of the stock.
The company will list its equity shares today. Its Rs 500-crore issue was subscribed 180.36 times during July 16-20, the second highest subscription seen among IPOs in 2021.
Results on July 29
Tech Mahindra, Colgate-Palmolive (India), AAVAS Financiers, ADF Foods, Aegis Logistics, Ajanta Pharma, CCL Products, Container Corporation of India, Dhanuka Agritech, Dwarikesh Sugar Industries, Eris Lifesciences, Future Retail, GHCL, Home First Finance Company India, Indus Towers, JK Lakshmi Cement, Jindal Stainless (Hisar), Jyothy Labs, Laurus Labs, LIC Housing Finance, Mahindra Holidays & Resorts India, Motilal Oswal Financial Services, Oberoi Realty, Parag Milk Foods, Punjab & Sind Bank, PVR, Raymond, Shoppers Stop, Shriram City Union Finance, TVS Motor Company, Union Bank of India, Vaibhav Global, and Welspun Corp will release quarterly earnings on July 29.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,274.77 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 921.45 crore in the Indian equity market on July 28, as per provisional data available on the NSE.With inputs from Reuters & other agencies
