Opening Bell:
Gift Nifty is down by 0.5 points in the early morning trade, indicating a negative opening for Indian stock market.
Asia-Pacific markets largely fell on Thursday ahead of a slew of economic data across the region. Investors will be closely watching China’s one and five-year loan prime rates to see if the country’s government will attempt to spur growth by cutting rates, days after China’s second quarter GDP came in below expectations. Japan’s Nikkei 225 opened down 0.48%, while the Topix was 0.22% lower as Japan posted a surprise trade surplus of 43 billion yen ($308 million), its first surplus in 23 months. South Korea’s Kospi fell 0.54%, with the Kosdaq retreating from its 16-month high to see a larger loss of 0.8%.
The Dow Jones Industrial Average and S&P 500 index rose modestly on Wednesday, with the blue-chip Dow registering its eighth straight day of gains as investors gauged the latest round of corporate earnings, but a decline in Microsoft held the Nasdaq near the unchanged mark. Bank stocks extended their rally, with the S&P 500 bank index advancing 1.70%, gaining for a third straight session and for the eighth time in the past nine. The Dow Jones Industrial Average rose 0.31%, the S&P 500 gained 0.24%, and the Nasdaq Composite added 0.03%.
Stocks News:
👉Tata Communications: The digital ecosystem enabler has reported a 30% year-on-year decline in profit at Rs 381.7 crore for quarter ended June FY24, impacted by weak operating margin, lower other income and higher finance cost. Revenue from operations increased by 10.7% YoY to Rs 4,771.4 crore for the quarter. On the operating front, EBITDA dropped 4.9% to Rs 1,024 crore compared to year-ago period, with margin contraction of 350 bps YoY during the quarter.
👉Finolex Industries: The PVC pipes and fittings manufacturer has recorded a 16.2% year-on-year growth in profit at Rs 115.3 crore for quarter ended June FY24, supported by healthy operating performance. Revenue from operations fell 0.9% to Rs 1,179.2 crore compared to year-ago period. On the operating front, EBITDA jumped 21.1% YoY to Rs 152.5 crore with margin expansion of 230 bps due to sharp fall in input cost.
👉L&T Finance Holdings: L&T Finance has recorded a 103% year-on-year growth in consolidated profit at Rs 530.93 crore for quarter ended June FY24. Revenue from operations grew by nearly 8% to 3,223.3 crore compared to year-ago period. Net interest margin expanded to 8.06% for the quarter, from 7.63% in previous quarter. Asset quality improved with the gross NPA falling 70 bps sequentially to 4.04% and net NPA declining 32 bps QoQ to 1.19% in Q1FY24.
👉Can Fin Homes: The housing finance company has recorded profit after tax at Rs 183.5 crore for quarter ended June FY24, rising 13% over a year-ago period, and net interest income at Rs 285.09 crore for the quarter, rising 14% YoY. Provision for NPA dropped to Rs 4.66 crore, from Rs 7.97 crore in the same period. Asset quality weakened with the gross NPA rising 8 bps sequentially to 0.63% and net NPA increasing 8 bps QoQ to 0.34% for June FY24 quarter.
👉Foreign institutional investors (FII) have bought shares worth Rs 1,165.47 crore, whereas domestic institutional investors (DII) sold shares worth Rs 2,134.54 crore on July 19, provisional data from the National Stock Exchange (NSE) shows.
Domestic and International Events
- India is unlikely to miss its budget deficit target for this fiscal year due to support from the central bank, despite hindrances such as weather, risks from divestment revenue and meek corporate tax collections, economists claim. The banks had tripled their surplus transfer to the government, allowing the state to reap a windfall that ameliorates concerns about any instability in its financial position.
- Inflation in the UK has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that may ease the pressure for the Bank of England to raise interest rates sharply over the coming months. The Office for National Statistics said that inflation, as measured by the consumer prices index, fell to 7.9% in the year to June from 8.7% the previous month. Economists had expected a more modest decline to 8.2%. The Office for National Statistics said that inflation, as measured by the consumer prices index, fell to 7.9% in the year to June from 8.7% the previous month. Economists had expected a more modest decline to 8.2%.
- Oil prices slipped in early Asian trade on Thursday, extending the previous session’s losses, as the dollar strengthened and on profit-taking after US crude oil stocks fell less than expected. Brent futures dipped 14 cents, or 0.2 percent, to $79.32 a barrel by 0001 GMT, while US West Texas Intermediate (WTI) crude fell 15 cents to $75.20 a barrel.
- Gold prices hovered near an eight-week peak on Wednesday after recent economic data re-ignited hopes that the US Federal Reserve may soon hit pause on its interest rate-hiking cycle. Spot gold eased 0.1 percent at $1,977.25 per ounce by 01:43 p.m. ET (1743 GMT), as the US dollar ticked up from 15-month lows. US gold futures settled unchanged at $1,980.80.
Key Equity Indices
| EMERGING | LATEST | % 1D |
| Hang Seng | 18,952 | (0.3) % |
| Shanghai Composite | 3,199 | 0.0 % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 35,061 | 0.3 % |
| DAX | 16,109 | (0.1) % |
| FTSE 100 | 7,588 | 1.8 % |
| Nikkei | 32,896 | 1.2 % |
| Straits Times | 3,275 | 0.6 % |
