Domestic markets extended their gains on Friday, with the Nifty advancing 0.4% to close at 24,271, taking its weekly gain to 0.9%. Sentiment was supported by weaker-than-expected US labour market data, reinforcing expectations of Federal Reserve will keep interest rates unchanged. Analysts say Indian equities are expected to maintain a gradual uptrend, supported by favourable global cues and easing concerns over the US interest rate outlook. The ongoing June-quarter business updates are likely to drive stock-specific action, while investors will closely monitor the southwest monsoon after June rainfall remained 40% below the long period average.
STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded lower by 3 points, or 0.01 per cent, at 24,352, signaling that Dalal Street was headed for a muted start on Monday.
- Tech View: Momentum indicators continue to support the bullish outlook, with the MACD maintaining a buy crossover above the zero line and the RSI holding comfortably above the 60 mark, indicating sustained buying strength. Adding to the positive sentiment, India VIX declined nearly 9% during the week to close below the 12 mark, signalling easing volatility and creating a favourable environment for the ongoing upward momentum.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 3.7% to settle at 11.83 levels.
Asian shares gain
Asian share markets were mostly firmer on Monday, as Wall Street futures started the week with gains on hopes for an upbeat earnings season, while easing oil prices promised relief from inflationary pressures.
- S&P 500 futures rose 0.5% as of 9:41 a.m. Tokyo time
- Hang Seng futures fell 0.2%
- Nikkei 225 futures (OSE) fell 0.2%
- Japan’s Topix rose 0.8%
- Australia’s S&P/ASX 200 was little changed
- Euro Stoxx 50 futures were little changed
Oil slips
Oil prices inched lower on Monday after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies.
Gold rises
Gold prices held near a two-week high on Monday after a cooler-than-expected U.S. jobs report last week slightly tempered expectations of interest rate hikes by the Federal Reserve.
Dollar dips
The U.S. dollar steadied near a two-week low on Monday as investors scaled back bets on a Federal Reserve rate hike this year, while the yen remained pinned near a 40-year low, keeping investors nervous about what Tokyo might do next.
Stocks in F&O ban today
1) NIL
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Rupee
The Indian rupee closed modestly higher on Friday at 95.21 but logged a weekly fall as dollar demand related to merchant flows, arbitrage trades and maturities in the non-deliverable forward market outweighed comfort from a broadly weaker US dollar.
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