Informist, Tuesday, Aug 8, 2023
By Akshata Gorde
MUMBAI – Benchmark indices are expected to remain range-bound ahead of the Reserve Bank of India’s Monetary Policy Committee meeting outcome, due Thursday. Analysts have pegged 19700 points as the resistance for the Nifty 50 index for Wednesday and 19500 points as the support.
Today, the Nifty 50 index closed 0.1% lower and the 30-stock Sensex closed down 0.2% at 19570.85 points and 65846.50 points, respectively. Both the indices opened higher but quickly turned negative, bogged down by losses in Adani Enterprises, Power Grid Corp of India, Mahindra & Mahindra, and Reliance Industries. The Nifty 50 index remained in the range of 19500 to 19650 points today.
The RBI is widely expected to keep the key interest rate unchanged at 6.50% and retain its stance of ‘withdrawal of accommodation’.
“Markets are likely to trade in a range ahead of RBI policy this week,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd. The continuous selling by foreign institutional investors over the past few days has limited the upside for domestic equities, he added.
Along with the RBI policy, investors will also eye global economic data this week, including the US inflation data for July on Thursday, the UK’s Apr-Jun quarterly estimate of GDP on Friday, and the US producer price index for July on Friday.
“Investors will be cautiously watching the RBI interest rate decision and some key economic readings this week which would give some sense on what could be in store in the near to medium term,” said Riches Vanara, a technical and derivatives analyst at Stoxbox. Vanara said 19500 points holds crucial support as per shorter-term moving averages and the derivative option data.
Analysts expect movement in the market to be stock- and sector-specific during the ongoing earnings season. Shares of Berger Paints India, Bharat Forge, Indian Railway Catering And Tourism Corporation, Bata India, Max Financial Services, Pi Industries, Abbott India, Tata Power Co, Trent, and Zee Entertainment Enterprises will be in focus as these companies are slated to announce their earnings Wednesday.
Shares of Coal India will be in focus as the company is expected to announce its Apr-Jun earnings later today. The company’s bottomline is likely to tank 30.3% on year to 61.6 bln rupees. Meanwhile, market participants anticipate a 6.5% year-on-year increase in its consolidated revenue, pegged at 346.1 bln rupees. The company’s coal sales rose 5.3% on year to 187 mln tn in Apr-Jun, and this is expected to generate higher revenue.
Shares of ICICI Bank, Motherson Sumi Wiring India, and LT Foods will likely fall as the stocks will trade ex-dividend on Wednesday. Aarti Drugs will buy back equity shares from Wednesday onwards till Aug 17. End
Edited by Akul Nishant Akhoury
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