Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Saloni Goel, and here is what we have to start your day.
>> Indian stock traders less bullish for August
>> US Tech Quartet delivers Street-beating earnings for Q2
>> Without BP gains, RIL’s Q1 profit would have fallen 41%
>> Maruti gets thumbs-down from brokerages
And there is more.
But first, a quick glance at the state of the markets...
>> Nifty futures on the Singapore Exchange traded 61 points higher at 7 am (IST) this morning, showing signs of a good start for Dalal Street.
>> Asian shares traded mixed this morning. Stocks slipped in Japan and Australia, while those in China and Hong Kong rose, with South Korea flat.
>> The S&P500 and Dow closed lower overnight after data painted a worrying economic picture. Dow fell 225 points, or 0.85%, the S&P500 12.22 points, or 0.38%, but the Nasdaq added 44.87 points, or 0.43%.
IN CURRENCY MART
>> The rupee fell 4 paise to close at 74.84 against the US dollar on Thursday tracking weak domestic equities and strong American currency.
>> The dollar slipped to two-year lows on Friday and is on track to post its biggest monthly decline in 10 years. The euro hit a two-year high. Against the yen, the dollar hit a four-and-a-half-month low as did the British pound
IN OIL MARKET
>> Oil prices rose, recovering further ground after touching three-week lows in the previous session, hit by a record decline in US growth. Brent crude was up by 40 cents, or 0.9 per cent, at $43.34 a barrel.
AND IN BULLION
>> Gold prices moved lower in Indian markets on Thursday, marking their first loss in 10 days. On MCX, August gold futures slipped 0.2% to Rs 53,065 per 10 gm. Silver futures plunged 2% to Rs 63,909 a kg. In global markets, spot gold fell 0.3% to $1,965.90 an ounce.
All in all, Dalal Street looked headed for a positive start this morning. On Thursday, Nifty50 shed 100 points to settle July F&O series at 11,102. Analysts said the formation of a bearish candle on the daily scale after an indecisive Spinning Top candle in the previous session suggested the index remains negatively biased.
DO Watch out for
Earnings from SBI, Sun Pharma, Tata Motors and others during the day beside June Infrastructure output and RBI forex reserve data
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… The Big Tech quartet of the US reported quarterly earnings on the same day for the first time ever, all topping Wall Street estimates. Facebook beat estimates and forecast similar growth ahead. Apple delivered blowout numbers, reporting revenue gains across every category and in every geography. Amazon posted the biggest profit in its 26-year history and Alphabet reported $38.3 billion revenues, down 2% — a first — from $38.94 billion in Q2 of 2019
… Indian stock traders carried forward fewer bullish bets to the August derivatives series on expiry of July contracts on Thursday amid growing worries about fatigue in the market after a near 50% uninterrupted rally since late March. Analysts said bullish positions in heavyweights such as RIL and large-cap technology companies could push Nifty higher while banks could put a cap on gains.
… The US economy contracted at its steepest pace since the Great Depression in the second quarter as the pandemic shattered consumer and business spending. The commerce department said GDP shrank 33% last quarter, marking the deepest decline in output since the government started keeping records in 1947.
... RIL saw its first quarter profit rise 31% to Rs 13,248 crore on the back of gains it made from the sale of its 49% stake in the petro retail venture to BP. If this gain of Rs 4,966 crore is excluded, then RIL’s June quarter profit before tax would be lower by 41% at Rs 8,542 crore.
… Brokerages have a mixed view on Maruti Suzuki India after the carmaker reported a net loss of Rs 249.4 crore for June quarter — its first loss in 17 years. Antique, CLSA, and Kotak Institutional Equities maintained ‘sell’ ratings on the stock, while Investec downgraded the stock to sell. Nomura has maintained a ‘hold’ recommendation. Emkay Global and Jefferies have maintained ‘buy’ and Morgan Stanley has an ‘overweight’ recommendation.
… RBI has told the PM that the government should cut its stake in PSU banks to 26% and give their chiefs a long-enough tenure so that these can be run more professionally. The government’s holding in state-run banks currently exceeds 50%. It was also suggested that the government should retain significant control over these banks.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
Tata Power is working on a range of initiatives that will cut debt in half, and reduce losses at Mundra power plant, Chairman N Chandrasekaran told shareholders at the AGM
The board of InterGlobe Aviation, the parent of the country's largest airline IndiGo, on Thursday decided to further deliberate on plans to raise funds.
Great Eastern Shipping Company on Thursday said its board has appointed former RBI Governor Urjit Patel as an additional and independent director for a term of five years
Airports Authority of India has "deferred" its decision to put SpiceJet on cash and carry mode till further notice and operations of the carrier continue to be normal as before,
RIL on Thursday raised Rs 2,550 crore by selling five sets of commercial papers, coming back to the market with a significant offering after a few weeks
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye