Nifty and Sensex: A Muted Start to the Day
The GIFT Nifty was trading marginally lower near 25,280 early Friday. The futures contract based on the benchmark Nifty 50 remained completely flat at 25,281 as of 7:00 a.m., indicating a muted start for the Indian markets. The Nifty 50 is a stock market index that represents the weighted average of 50 of the largest and most liquid stocks on the National Stock Exchange (NSE).
Global Market Cues
S&P 500 futures were up 0.14%, while Nasdaq futures rose 0.15%. The Euro Stoxx 50 futures were up 0.79%, indicating a positive trend in global markets. The S&P 500 is a stock market index that represents the market value of 500 large, publicly traded companies in the US. The Nasdaq is a stock exchange that is home to many technology and growth companies.
Previous Day’s Market Performance
The Nifty ended in the red for the second consecutive session on Tuesday, after a volatile and choppy trade. At the close, the Sensex slipped 297.07 points, or 0.36%, to 82,029.98, while the Nifty fell 81.85 points, or 0.36%, to 25,145.50. The Sensex is a stock market index that represents the weighted average of 30 of the largest and most liquid stocks on the Bombay Stock Exchange (BSE).
Asian Markets
Asian stocks rebounded after three days of losses, as optimism over a potential Federal Reserve interest-rate cut lifted sentiment and outweighed renewed US-China trade tensions. The Hang Seng futures jumped 0.12%, while Japan’s Nikkei rose 0.74%. Australia’s S&P/ASX 200 was up 0.77%.
US Market Performance
The S&P 500 fell 0.16% to close at 6,644.69, while the Nasdaq fell 0.76% to end at 22,521.70. The Dow Jones Industrial Average surged 202.88 points, or 0.44%, to finish at 46,270.46.
Commodity Prices
Oil prices steadied after falling to a five-month low on Tuesday on expectations for a supply glut and escalating US-China trade tensions. Brent traded near $62 a barrel after sliding 1.5% in the previous session, while West Texas Intermediate was below $59. Gold edged higher toward a record yet again, boosted by an escalation in US-China frictions and bets the Federal Reserve will cut interest rates twice more this year.
Corporate Actions
Axis Bank, HDB Financial Services, HDFC Asset Management Company, HDFC Life Insurance Company, Angel One, Tata Communications, Oberoi Realty, Delta Corp, Heritage Foods, Huhtamaki India, Indian Railway Finance Corporation, KEI Industries, Kewal Kiran Clothing, L&T Finance, Mangalore Refinery and Petrochemicals, Nuvoco Vistas Corporation, and Rossari Biotech are some of the companies that will announce their Q2 results today.
Q2 Results
Tech Mahindra Q2 results showed a revenue increase of 4.8% to Rs 13,995 crore, while net profit rose 5% to Rs 1,194.50 crore. ICICI Lombard General Insurance Co Q2 results showed a total income increase of 12.5% to Rs 6,583 crore, while net profit rose 18.1% to Rs 820 crore. Cyient DLM Q2 results showed a revenue decrease of 20.2% to Rs 310.60 crore, while net profit rose to Rs 32 crore.
Market Outlook
The Nifty October futures are down by 0.49% to 25,185 at a premium of 40 points. The Nifty October futures open interest is up by 3.05%. The Nifty Options Oct. 20 Expiry shows maximum call open interest at 26,000 and maximum put open interest at 24,000.
Stocks in Ban Period
RBL Bank and Sammaan Cap are in the ban period today.
Rupee Performance
The rupee depreciated 9 paise to 88.77 against the US dollar in early trade on Tuesday, weighed down by the broad strength of the American currency in the overseas market.
Conclusion
In conclusion, the Indian stock markets are expected to have a muted start to the day, with the Nifty and Sensex trading flat. The Q2 results of various companies will be closely watched, and the market will react accordingly. The global market cues are positive, with the S&P 500 and Nasdaq futures trading higher. The commodity prices are steady, with oil prices trading near $62 a barrel and gold edging higher.
