Sunday, Oct 02, 2022

Important Information For August 8 Stock Trading Strategy

Foreign institutional investors (FIIs) bought shares worth Rs 1,606 crore on Friday while domestic institutional investors sold shares worth Rs 496 crore

File Photo

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 45 points or 0.26 per cent to 17,378 amid weak cues from other Asian markets.

Here are key things to know before markets open on Monday

Asian Markets

Asian share markets made a stuttering start on Monday and the dollar held firm after a stunning U.S. payrolls report pushed back against talk of recession but also bolstered the case for more super-sized rate hikes.

Markets quickly moved to price around a 70 per cenr chance the Federal Reserve will lift rates by 75 basis points in September, sending two-year yields up 20 basis points on Friday and further inverting the curve.

The blockbuster data only raised the stakes for the June U.S. consumer prices report due on Wednesday, which could see a slight pullback in headline growth, but likely a further acceleration in core inflation.

Singapore's Straits Times fell 0.3 per cent, Hong Konng's Hang Seng declined 0.83 per cent, Taiwan Weighted fell 0.33 per cent and Japan's Nikkei rose 0.2 per cent.

US Markets

Stocks closed lower Friday after new data on the hot U.S. jobs market suggested the Fed won’t soon rein in its aggressive rate hikes.

The S&P 500 and the Nasdaq fell, while the Dow Jones industrials notched a small gain.

Employers unexpectedly accelerated their hiring last month and added hundreds of thousands more jobs than forecast. While the data suggests the economy may not be in a recession, it also undercuts investor hopes that inflation may be close to peaking. Treasury yields jumped.

On Friday:

The S&P 500 fell 6.75 points, or 0.2 per cent, to 4,145.19.

The Dow Jones Industrial Average rose 76.65 points, or 0.2 per cent, to 32,803.47.

The Nasdaq fell 63.03 points, or 0.5 per cent, to 12,657.55.

The Russell 2000 index of smaller companies rose 15.37 points, or 0.8 per cent, to 1,921.82.

Gold and Crude Oil Price Check

Benchmark U.S. crude oil for September delivery rose 47 cents to $89.01 a barrel Friday. Brent crude for October delivery rose 80 cents to $94.92 a barrel.

Gold for December delivery fell $15.70 to $1,791.20 an ounce. Silver for September delivery fell 28 cents to $19.84 an ounce and September copper rose 7 cents to $3.55 a pound.

The dollar rose to 135.11 Japanese yen from 132.91 yen. The euro fell to $1.0178 from $1.0249.

Foreign Flows

Foreign institutional investors (FIIs) bought shares worth Rs 1,606 crore on Friday while domestic institutional investors sold shares worth Rs 496 crore.

Rupee Check

Reversing a two-session losing streak, the rupee appreciated by 16 paise to close at 79.24 against the US dollar on Friday after the Reserve Bank hiked interest rates by 50 basis points.

At the interbank foreign exchange market, the domestic currency opened at 79.15 per dollar and hovered in a range of 78.94 to 79.29.

Stocks In Focus

State Bank of India: The country's biggest lender State Bank of India (SBI) on Saturday posted a 7 per cent decline in standalone net profit at Rs 6,068 crore for the first quarter of the current financial year due to fall in income.

The bank had reported a net profit of Rs 6,504 crore in the April-June quarter of 2021-22.

Its standalone total income declined to Rs 74,998.57 crore in the first quarter of 2022-23, as against Rs 77,347.17 crore in the same period a year ago, SBI said in a regulatory filing.

The operating profit of the bank slipped by 33 per cent to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal, impacted by Mark to Market (MTM) losses on its investment book.

Marico: FMCG firm Marico Ltd on Saturday reported a 3.28 per cent increase in its consolidated net profit to Rs 377 crore for the first quarter ended June.

The company had posted a net profit of Rs 365 crore in the April-June period a year ago, Marico said in a BSE filing.

Its revenue from operations rose marginally by 1.3 per cent to Rs 2,558 crore, as against Rs 2,525 crore in the corresponding quarter of the previous y

Cipla: Drug major Cipla is betting big on digitisation and emerging segments like biosimilars and mRNA aided medications to drive its next phase of growth.

The Mumbai-based drug maker is also bullish on maximising value opportunity in the complex generics in the US market.

It is also looking to scale up its US core formulations sales on the back of respiratory and peptide franchises while monitoring upcoming complex product launches in the second half of the current fiscal.

Maruti Suzuki: Maruti Suzuki India will increase its production and aims to produce 20 lakh units in the ongoing fiscal with improving availability of semiconductors, according to company Chairman RC Bhargava.

In his address to shareholders in the company's annual report for 2021-22, he said the upcoming mid-sized SUV Grand Vitara will play a key role in the challenge to touch 20 lakh units.

In 2021-22, total sales of Maruti Suzuki India Ltd (MSIL) increased by 13.4 per cent to 16.52 lakh units. It had lost out on sales in the first quarter of the fiscal due to the pandemic and production being affected by the shortage of semiconductors, mainly for domestic models, Bhargava wrote.

Indian Oil, Hindustan Petroleum, Bharat Petroleum: State-owned Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) posted a combined loss of Rs 18,480 crore on holding petrol and diesel prices despite a rise in cost.

According to stock exchange filings by the three fuel retailers, the losses were due to erosion in the marketing margin on petrol, diesel and domestic LPG.

This wiped away gains from the record refining margin. IOC, HPCL and BPCL, which are supposed to revise petrol and diesel prices daily in line with cost, have not changed rates for four months now despite international oil prices shooting up.

They have also not changed cooking gas LPG rates in tandem with cost. IOC on July 29 reported a net loss of Rs 1,995.3 crore for the April-June quarter. On Saturday, HPCL reported its highest ever quarterly loss of Rs 10,196.94 crore and BPCL posted a loss of Rs 6,290.8 crore.

Tata Motors: Tata Motors on Sunday said its subsidiary has inked a pact to acquire Ford India's Sanand-based manufacturing plant for Rs 725.7 crore.

Tata Passenger Electric Mobility Ltd (TPEML), a subsidiary of Tata Motors and Ford India Pvt Ltd (FIPL), have signed a Unit Transfer Agreement (UTA) for the acquisition of the Gujarat-based plant.

As part of the deal, Tata Motors will get entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the Mumbai-based auto major said in a statement.