Indian Stock Market Update on July 21:
The Indian stock market is set to open flat on Monday following mixed global cues. The Sensex and Nifty 50 indices, which represent the Indian equity market, are expected to have a muted start today, as global stock markets showed a mixed response. Let’s dive into the key developments that are influencing market activity.
Asian markets traded in a mixed manner on Monday after the People’s Bank of China decided to keep its interest rates unchanged. The MSCI Asia-Pacific Index, excluding Japan, was flat. Japanese markets remained closed due to a public holiday. The South Korean Kospi gained 0.35%, while Hong Kong’s Hang Seng futures indicated a positive opening.
In the US, stock market futures showed uncertainty, with investors bracing for the upcoming earnings reports from major tech companies. The previous week ended with mixed results. The Dow Jones Industrial Average declined. The Nasdaq gained slightly. The S\&P 500 index rose by 0.59% for the week.
On Friday, the Indian stock market closed sharply lower, reflecting weak investor sentiment. The Sensex dropped 501.51 points or 0.61%, closing at 81,757.73. The Nifty 50 ended 143.05 points or 0.57% lower at 24,968.40.
Market experts say earnings reports from key companies like Reliance Industries and HDFC Bank will influence market sentiment today.
“Markets will react to the earnings of the heavyweights in early trade, which will likely set the tone for the session. Participants are advised to avoid aggressive trades and focus on stock selection,” said Ajit Mishra, SVP at Religare Broking.
Gift Nifty: The Gift Nifty index, which tracks Indian market trends, traded around 25,027, showing a small discount of about 5 points from the previous session’s close.This suggests that the Indian market may open on a flat note.
Global Market Outlook: Wall Street showed mixed trends on Friday. While some stocks, like Tesla and Amazon, saw positive movement, others like Nvidia and Netflix faced declines. The US consumer sentiment improved slightly in July, as per the University of Michigan’s Surveys of Consumers, with the Consumer Sentiment Index rising from 60.7 to 61.8.
China’s Rate Decision: The People’s Bank of China kept its one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5%, signaling stability in Chinese monetary policy.
Indian Companies’ Q1 Results
This week, investors are keeping a close eye on the Q1 earnings reports from major companies:
1. Reliance Industries reported a significant 78% year-on-year (YoY) surge in net profit, reaching ₹26,994 crore. Revenue grew by 6% to ₹273,252 crore, and its EBITDA margin improved by 460 basis points YoY.
2. HDFC Bank posted a 12.24% YoY growth in net profit, amounting to ₹18,155.21 crore. Its net interest income (NII) rose by 5.4%, and the bank declared a special interim dividend of ₹5 per share.
3. ICICI Bank saw a 15.5% rise in net profit, totaling ₹12,768 crore. The bank also experienced a steady decline in non-performing assets (NPA), indicating better asset quality.
Global Currency and Oil Updates
Dollar Index: The dollar index, which compares the US dollar against six major currencies, stood at 98.352. The Euro and British Pound were stable at \$1.163 and \$1.134 respectively.
Crude Oil Prices: Crude oil prices experienced slight gains, with Brent Crude rising 0.25% to \$69.45 per barrel and US West Texas Intermediate crude climbing 0.27% to \$67.52. This was driven by market concerns over Russian oil supply disruptions and rising output from Middle Eastern producers.
The Indian stock market faces a crucial week with a mix of domestic and global factors influencing investor sentiment. The focus remains on earnings from major companies, the US-India trade negotiations, and global economic data. As the week progresses, investors will need to remain cautious and focus on stock selection based on earnings performance and market trends.
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