Monday, Sep 26, 2022

Important Information For August 10 Stock Trading Strategy

Foreign institutional investors (FIIs) bought shares worth Rs 1,450 crore on Monday while domestic institutional investors sold shares worth Rs 141 crore

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The Indian equity benchmarks are set to open lower as indicated by the Nifty Futures traded on Singapore Exchange. Nifty Futures on Singapore Exchange also known as SGX Nifty Futures fell 26 points or 0.15 per cent to 17,514 amid weak cues from global markets.

Here are key things to know before markets open on Wednesday

Asian Markets

Most of the Asian markets were trading lower following weak closing of US markets. Japan's Nikkei declined 0.65 per cent, Hong Kong's Hang Seng fell 1.04 per cent, Taiwan Weighted declined 0.57 per cent and South Korea's KOSPI fell 0.81 per cent.

US Markets

Stocks on Wall Street extended their recent run of losses Tuesday as investors reviewed disappointing earnings reports and looked ahead to the release of an inflation snapshot closely watched by the Federal Reserve.

The S&P 500 fell 0.4 per cent, marking its fourth consecutive drop. The Dow Jones Industrial Average fell 0.2 per cent and the Nasdaq slid 1.2 per cent.

Smaller company stocks also gave up ground, sending the Russell 2000 index 1.5 per cent lower.

Technology companies and retailers were the biggest drags on the market, outweighing gains in energy, financials and elsewhere. Bond yields rose broadly.

The selling likely reflects profit-taking by investors ahead of Wednesday’s consumer price index report, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Gold and Crude Oil Price Check

Benchmark U.S. crude oil for September delivery fell 26 cents to $90.50 a barrel Tuesday. Brent crude for October delivery fell 34 cents to $96.31 a barrel.

Gold for December delivery rose $7.10 to $1,812.30 an ounce. Silver for September delivery fell 13 cents to $20.48 an ounce and September copper was unchanged at $3.59 a pound.

The dollar rose to 135.18 Japanese yen from 134.88 yen. The euro rose to $1.0205 from $1.0186.

Foreign Flows

Foreign institutional investors (FIIs) bought shares worth Rs 1,450 crore on Monday while domestic institutional investors sold shares worth Rs 141 crore.

Rupee Check

The rupee depreciated by 39 paise to close at 79.63 against the US currency on Monday, pressured by dollar demand and waning risk appetite among investors.

Lower crude oil prices and a rally in domestic equities restricted the losses to some extent, forex dealers said.

At the interbank foreign exchange market, the domestic currency opened weak at 79.50 per dollar. It oscillated between a high of 79.45 and a low of 79.65 during the session.

Stocks In Focus

Infosys: India's second-largest IT services company Infosys is "comfortable" with the higher revenue growth guidance of 14-16 per cent it gave for the full fiscal, as global IT spends are in "good shape", CEO Salil Parekh said on Tuesday.

Infosys' top boss told PTI in an interview that the company sees continued strength in both US and European markets, although it is keeping a close watch on the macroeconomic environment as "these are things one has to monitor on a constant basis".

The optimistic commentary from the Infosys management comes even amid talks that the global economy may be facing an increased risk of recession.

Tata Communications: Tata Communications under-reported gross revenue between 2006-07 to 2017-18 which led to Rs 645 crore lower levy of licence fee during the period, the Comptroller and Auditor General of India (CAG) has said in a report.

The CAG, in the report, also said the amount needs to be recovered from Tata Communications Ltd (TCL).

Tata Teleservices (Maharashtra): Loss-making telecom operator Tata Teleservices(Maharashtra) on Tuesday reported narrowing of loss to Rs 295.1 crore in the first quarter of the current financial year.

The company had posted a loss of Rs 318.45 crore in the same period a year ago. 

Bharti Airtel: Telecom operator Bharti Airtel will start rolling out 5G services this month and cover all towns and key rural areas of the country by March 2024, a senior company official said on Tuesday.

Bharti Airtel managing director and CEO Gopal Vittal also said that the price of mobile services in India is very low and needs to go up.

Tata Chemicals: Tata Chemicals on Tuesday reported an 86.25 per cent increase in consolidated net profit at Rs 637 crore during the quarter ending June.

The company's net profit stood at Rs 342 crore in the corresponding quarter of the previous fiscal, Tata Chemicals said in a regulatory filing.

Revenue from operations of the company went up by 34.15 per cent during the quarter under review at Rs 3,995 crore compared to Rs 2,978 crore in the same period of last fiscal.

GAIL India: GAIL (India) Ltd wants to double its share capital as well as add specialty chemicals and clean energy to its line of business as it looks to diversify business beyond natural gas transmission and distribution.

GAIL has sought shareholder approval to increase the authorised share capital of the company to Rs 10,000 crore from the current Rs 5,000 crore to help raise finance for its expansion plans over the next 3-4 years.

ABB India: ABB India on Tuesday said its net profit more than doubled to Rs 147 crore in the June quarter, mainly on the back of higher revenues. 

The company had reported a profit of Rs 68 crore in the quarter ended June 30, 2021, according to a company statement. 

Its total revenues rose to Rs 2,053 crore in the quarter from Rs 1,425 crore a year ago.

MRF: Tyre maker MRF Ltd on Tuesday reported a 25.35 per cent decline in consolidated profit from continuing operations at Rs 123.6 crore in the first quarter ended June, impacted by higher raw material cost.

The company, which had posted a consolidated profit for the period from continuing operations of Rs 165.58 crore in the year-ago period, said its board has approved raising of Rs 100 crore through issuance of non-convertible debentures on a private placement basis.

Consolidated revenue from operations in the June quarter stood at Rs 5,695.93 crore as against Rs 4,183.96 crore in the last fiscal, MRF Ltd said in a regulatory filing.

(With Agency inputs)