Top 10 things to know before the market opens

The market is likely to see a flat opening on July 25 as GIFT Nifty indicates a muted start for the broader index, with a gain of 33 points at 19,727.50.

On July 24, the BSE Sensex dropped 300 points to end at 66,385, while the Nifty50 declined 73 points to 19,672 and formed a bearish candlestick on the daily charts, making a lower-high and lower-low formation. The index remained below the five-day EMA (exponential moving average of 19,737) for the second consecutive session but has taken support at the 10-day EMA (19,650).

The pivot point calculator suggests that the Nifty may get support at 19,657, followed by 19,628 and 19,580. In case of an upside, 19,752 can be the key resistance area followed by 19,781 and 19,829.

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 33 points on Tuesday. The futures stood at 19,736.

Trade setup for Tuesday: Top 15 things to know before the opening bell

US Markets

US stock futures were flat on Monday night after the Dow Jones Industrial Average registered its longest winning streak since February 2017. Dow Jones Industrial Average futures inched down 12 points, or 0.03 percent. Futures linked to the S&P 500 slipped by 0.03 percent, and Nasdaq 100 futures ticked lower by 0.04 percent.

During regular trading, the Dow added more than 183 points, or 0.5 percent, marking its 11th consecutive winning session. The 30-stock index also hit its highest level since April 2022 and had its highest close since February 2022. The S&P 500 and the Nasdaq Composite added 0.4 percent and 0.2 percent.

While a stronger-than-expected earnings season has helped maintain the market rally, Wall Street is also carefully awaiting the Federal Reserve’s policy decision on Wednesday. Fed fund futures data shows a 98 percent probability of a quarter-point hike, according to the CME FedWatch Tool. Investors are waiting for Chair Jerome Powell’s statements on his outlook for the economy as it tackles inflation.

European Markets

European markets closed slightly higher on Monday as investors digested the inconclusive results of Spain’s election and looked ahead to a busy week of corporate earnings and central bank meetings.

The pan-European Stoxx 600 provisionally ended the session up 0.1 percent, with the UK’s FTSE 100 and DAX slightly higher as France’s CAC 40 dipped. Oil and gas stocks led sector gains, gaining 1.5 percent, while media stocks fell 0.7 percent.

Fresh data pointed to a slowdown in business activity in France, Germany and the UK in July, adding to recessionary risks in Europe. Spanish elections held Sunday left the country without a clear majority for either of the two main parties, opening the door to potentially prolonged coalition negotiations.

The European Central Bank meets on Thursday, when policymakers are expected to announce a 25-basis point rate hike and offer guidance for the final stages of their efforts to fight inflation.

Asian Markets

The Asia-Pacific markets were mixed on Tuesday after China’s Politburo pledged to “adjust and optimise policies in a timely manner” for its ailing property sector. Beijing’s top decision-making body also vowed to “elevate stable employment to a strategic goal” along with other pledges to boost consumption and tackle debt risks.

This comes after disappointing economic data last week prompted renewed calls for policy support to bolster growth. Hong Kong’s Hang Seng index looks set for a strong rebound after the index lost more than 2 percent on Monday, dragged mainly by losses in real estate stocks. HSI futures were at 19,189, compared its last close of 18,668.15.

In Japan, the Nikkei 225 fell 0.29 percent in early trade, while the Topix was down marginally. South Korea’s Kospi traded close to the flatline, while the Kosdaq was 0.32 percent lower. This comes after the country saw a 0.9 percent on-year growth in its second-quarter gross domestic product, according to advance estimates. However, Australia’s S&P/ASX 200 extended its gains from Monday, rising 0.24 percent.

GIFT Nifty registers $8.5 billion turnover on July 24

GIFT Nifty derivatives on the NSE International Exchange on Monday witnessed a record first session single day trading activity of over 2.14 lakh contracts with a turnover of $8.5 billion. This is a significant growth compared to the first-day full-scale operations volume of 33,570 contracts with a turnover of $1.21 billion, the exchange said in a statement.

Trading turnover on the NSE IX has been growing exponentially since the commencement of the full-scale operation of NSE IX-SGX GIFT Connect from SGX to NSE IX on July 3. Since the first day of full-scale operations of Connect, Gift Nifty has witnessed a total cumulative volume of 7.86 lakh contracts with a total cumulative turnover of $30.28 billion.

Relaxo Footwears Q1: Net profit rises 46% to Rs 56.32 crore, revenue up 11%

Relaxo Footwears reported a consolidated net profit of Rs 56.32 crore for the quarter ended June 2023, up 45.64 percent from Rs 38.67 crore in the year- ago period. The company reported a 10.7 percent YoY (year-on-year) rise in consolidated revenue from operations at Rs 738.82 crore against Rs 667.15 crore year ago. Following earnings, share price of Relaxo closed 2.14 percent higher to Rs 941.40 as of 3.34 pm on NSE.

SRF Q1 results: Net profit slumps 41% to Rs 358 crore

Chemicals maker SRF Ltd posted a 41 percent decline in net profit in the June quarter of the current financial at Rs 359.3 crore, down from Rs 632 crore in the year-ago period. Topline also slipped 14.3 percent year-on-year to Rs 3,338.4 crore in the April-June period from Rs 3,894 crore.

A poll of brokerages by CNBC-TV18 pegged the chemical maker’s bottom-line and topline at Rs 454 crore and Rs 3,586 crore, respectively. SRF results fell short of the projections. The market also reacted negatively to SRF’s weaker-than-expected quarterly numbers as the stock slipped 3 percent after the result announcement. It closed at Rs 2,142 on the National Stock Exchange, down 3.2 percent from the previous day.

Oil Prices

Oil prices rose on Monday as tightening supply and hopes for Chinese stimulus underpinned Brent at well above $80 a barrel, even as traders expected more rate hikes from US and European central banks.

Brent crude futures were up 91 cents, or 1.1 percent, at $81.98 a barrel. US West Texas Intermediate crude was at $78.12 a barrel, also up $1.05, or 1.3 percent. The benchmarks climbed 1.5 percent and 2.2 percent last week, their fourth straight of week of gains, as supply is expected to tighten following OPEC+ cuts. Fighting also escalated last week in Ukraine after Russia withdrew from a UN-brokered safe sea corridor agreement for grain exports.

Dollar Index

The Dollar index traded 0.20 percent higher in futures at 101.28, whereas the value of one dollar hovered near Rs 81.80.

Gold

Gold prices traded a tight range on Monday as traders braced for a widely anticipated interest rate hike along with clues on future monetary policy from the Federal Reserve this week. Spot gold was mostly unchanged at $1,959.39 per ounce. US gold futures fell 0.3 percent to $1,961.20.

“Gold is slow and steady, with traders betting that the Fed is getting close to their point where they stop hikes,” said Bob Haberkorn, senior market strategist at RJO Futures.

FIIs and DIIs

Foreign institutional investors (FII) sold shares worth Rs 82.96 crore, whereas domestic institutional investors (DII) bought shares worth Rs 934.87 crore on July 24, provisional data from the National Stock Exchange (NSE) shows.

With inputs from Reuters and other agencies.

Simonne Stigall

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