Sunday, September 24

Prior to the opening of the stock market, here are the 10 things you need to know before proceeding.

Dalal Street.

The GIFT Nifty’s positive start is expected on August 10, with the benchmark Sensex and NIVX also set for a slight rise as they open higher.

After a surge, the BSE Sensex finished the session at 65,995, up 149 points, and the Nifty50 closed up 61% at 19,632, trading above its 200-day moving average of 19,591 points and attempting to maintain momentum.

The Nifty pivot point calculator shows that it can be supported at 19,514, followed by 19,472 and 19,404. If there is an upside, the key resistance can range from 19,650 to 19,692 or 19,760.

Stay up-to-date on Moneycontrol’s latest updates on the currency and equity markets. We have compiled a list of significant headlines across various news outlets, which may affect Indian and global markets in different ways.

The GIFT Nifty

GIFT Nifty futures reached 19,624 points, and the broad index is off to an impressive start with a 30-point increase of 30 points after the NRS closed up 61 points at 19,632 on August 9.

Before the opening bell on Thursday, here are 15 things to know before making a trade.

The US markets

As Wall Street readied a significant inflation reading that could influence the Federal Reserve’s next rate decision, stock futures experienced reversal overnight. Futures connected to the Dow Jones Industrial Average increased by 87 points, or 0.25 percent, while the S&P 500 and Nasdaq-100 future added 0.26 percent and 0.29 percent respectively.

The announcement of an upcoming price hike for ad-free Disney+ subscriptions led to reversal, with Disney’s stock rising by 2 percent. Wynn Resorts also advanced 1 percent on stronger-than-expected results, while the Dow Jones Industrial Average dropped 0.54 points, the S&P 500 declined 0.7 percent, and the Nasdaq Composite lost 1.17 percent after the down session.

Traders are now expecting the consumer price index report on Thursday, which could provide additional insight into how the central bank’s latest rate moves are impacting sticky prices. The findings could also affect the Fed’S next rate decision at its September policy meeting. According to Dow Jones polluters, July CPI increased by 0.2 percent from last month and gained 3.3 percent year-over-year.

The European Markets

The pan-European Stoxx 600 index ended with a 0.4% increase, while oil and gas stocks gained by 2.3% and travel/recreation stocks finished the session down almost 1 percent. Italian banks experienced soaring gains on Tuesday due to the tax, but the Italian government partially revised its approach. The finance ministry announced on Wednesday that the new tax would be capped at 0.1% of risk-weighted assets, which is only one fifth of the level that was proposed by Citi.

On Wednesday, the FTSE and DAX closed higher by 0.80 percent, with the former reaching 7,587 and the latter peaking at 15,852 points.

Asian Markets.

As investors read about the release of July consumer price index data from the US on Thursday, Asia-Pacific markets fell as economists polled by Reuters predicted a slightly higher inflation rate of 3.3 percent compared to 3 percent in June.

The Nikkei 225 fell by 0.33 percent, and the Topix experienced a 0.16 percent decline. Meanwhile, Japan’s wholesale inflation rate for July was revised down to 3.6 percent after an increase from June’d 4.13 percent.

The S&P/ASX 200 of Australia was trading just below the stationary range, while South Korea’s Kospi fell by 0.43 percent and the Kosdaq lost 0.77 percent. Hong Kong’ s Hang Seng index closed at 19,168, indicating a lower open than the previous HSI close of 19,246.03.

Sebi has shortened the time frame for listing shares to T+3, which is required from December 1st.

After the public issue closes, the market regulator has shortened the time for listing securities to three days, which is six days. With T as the issue-closing date, these securities will now have to be listed on T+3 day, unlike the current T+1 day. This will be an option for public issues that open after September 1, 2023, and will also be mandatory for issues opening after December 1, 2020.

Schneider Electric Infrastructure’s Q1 profit surges to Rs 35 crore.

The BSE filing revealed that Schneider Electric Infrastructure’s net profit in the June quarter increased by 32 percent to Rs 34.92 crore, with higher revenues being the main reason, as reported on August 9. The company had previously recorded a net income of Rs 26.52 crore in its previous year-ago period.

The company’s total income reached Rs 497.57 crore in the first quarter of the current fiscal, up from Rs 371.98 crore last year. The Board of Directors approved the appointment of Suparna Banerjee Bhattacharyya as the Chief Financial Officer (CFO) and key managerial personnel of HSBC with immediate effect during their meeting on Wednesday.

In the first quarter of the year, V-Mart recorded a net loss of Rs 21.9 crore, with yearly revenue growth of 15.4%.

V-Mart Retail Ltd’s net profit in the previous quarter of FY24 was Rs 20.45 crore, while on August 9, the company recorded a consolidated net loss of Rs 21.94 crore for the June quarter.

According to a regulatory filing, the retail chain’s revenue in Q1FY24 was Rs 678.52 crore, which is 15.4 percent higher than the previous year’. The overall revenue was 14.2 percent more than its peak revenue of Rs 593.91 crore in the fourth quarter of the last fiscal. Segment wise, revenues from retail trade were Rs 661.15 lakh, while digital marketplaces contributed an estimated Rs 17.36 crore this year.

The Q1 results of Zee Entertainment show a 97% decrease in profit at Rs 3.9% and d revenue drops by 2.6%.

The ad environment’s poor performance caused Zee Entertainment to report 97 percent decline in its profit after tax (PAT) for the June quarter of 2024, which was lower than expected for other media companies and worth Rs 3.9 crore.

The company’s PAT for the Q1 FY23 was 130.1 crore, and analysts predicted a drop of 80-90 percent in profits. It also reported yearly domestic advertising revenues of Rs 901.8 crore (year on year), down 2.6 percent from the previous year. The firm was expected to observe 7% decline in AP revenue and 12% YoY.

The company’s earnings presentation revealed a soft start to the June quarter with fewer AP spends, while the Indian Premier League (IPL) was scheduled for the first two months of the same quarter. By the end of that quarter, there were early signs of green shoots and increased corresponding FD spending, with FMCG being the most prominent contributor.

The cost of oil

On Wednesday, Brent crude experienced its highest price since April as supply tightened due to output cuts in Saudi Arabia and Russia, countering concerns about slow demand from China and rising U.S. crude inventories.

Saudi Arabia, the largest exporter, extended its voluntary production cut of 1 million barrels per day to September for another month, while Russia announced a 300,000-bpd reduction in oil exports in September.

Charalampos Pissouros, a senior investment analyst at broker XM, stated that the major producers, such as Saudi Arabia and Russia, are responsible for driving the latest recovery by maintaining supply subdued for another month.

The price of Brent crude increased by 1.2% to $87.24, the highest level since April 13, while WTI crude gained by 1.0 percent at 80 cents for $83.72, and the U.S. benchmark reached $84.11, the most expensive since November 2022.

The Dollar Index is a useful resource.

The Dollar index experienced a 0.24 percent increase in futures at 102.44, while the value of one dollar was close to Rs 82.84.

What is the price of gold?

On Wednesday, investors held off on buying gold as the Fed’s monetary policy signals were delayed by key U.S. inflation data. Spot gold prices plummeted to $1,924.39 per ounce, marking the lowest level since July 10.

U.S. gold futures were trading at a modest $1,958.50 per ounce, suggesting reversal from the recent events.

According to Pavilonis, gold has been a hedge against inflation and is facing challenges with sluggish 10-year yield. However, the Fed’s quick rate hike will cause gold to struggle if inflation persists and the U.S. consumer price index (CPI) data is due in July.

Both FIIs and DII have specific characteristics.

The cash segment of Indian equities was purchased by foreign institutional investors for the first time in the last 10 consecutive sessions, amounting to Rs 644.11 crore, while domestic institutional investor (DII) sold Rs 597.88 crore worth of stocks on August 9, as per provisional data from the National Stock Exchange (NSE).

With input from Reuters and other media outlets.

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