Weak global cues amid an escalation in the ongoing US-China trade war is likely to weigh on Indian equity benchmarks as well on Thursday.
The SGX Nifty trades at levels around 11,459 against the Nifty August Future's Wednesday close of 11,467, indicating a mildly lower opening for the Indian market today.
Here is what you need to know before the market opens: Asia: Shares were under pressure after a new round of tit-for-tat tariffs in the US-China trade conflict. MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged as caution dominated. Japan’s Nikkei slipped 0.5 percent, not helped by a shock slump in core machinery orders. US markets: Trade-sensitive industrial companies were the biggest drag on the Dow, with declines led by Boeing and Caterpillar Inc. The Dow fell 0.18 percent, while the S&P 500 lost 0.03 percent and the Nasdaq added 0.06 percent. Currency: The dollar eased to 110.81 yen, while the euro was relatively steady at $1.1611. The dollar index was a shade firmer at 95.098. Crude prices: US crude was last down 12 cents at $66.82 per barrel, having shed 3.2 percent on Wednesday, while Brent was off 2 cents at $72.26. Markets at close: The BSE Sensex vaulted 221.76 points to close at 37,887.56, while the broader NSE Nifty advanced 60.55 points to settled at 11,450, finishing above the 11,400-mark for the first time. The Nifty Bank index also breached the 28,000 level for the first time. Rupee: The rupee settled at 68.63 against the US dollar, gaining 5 paise or 0.07 percent on Wednesday against the previous close of 68.68. FIIs and DIIs: Foreign institutional investors (FIIs) bought shares worth Rs 568.63 crore while domestic institutional investors bought shares worth Rs 30.25 crore in the Indian equity market on Wednesday, as per provisional data available on the NSE. RBI dividend to govt: The Reserve Bank on Wednesday said it has decided to pay a dividend of Rs 50,000 crore to the Union government for the year ending 30 June, 2018. The RBI had last year transferred a surplus of Rs 30,659 crore as dividend to the government for the year ended 30 June, 2017, which was less than half of what it paid in the previous year (Rs 65,876 crore). Earlier in March this year, the central bank had paid an interim dividend of Rs 10,000 crore for 2017-18. US-China trade war: China's Ministry of Commerce on Wednesday said it has imposed a 25 percent charge on goods worth $16 billion from the United States, including crude oil and cars. This retaliatory tariff imposition comes after the Trade Representative's office of the US released a finalised list of $16 billion worth of Chinese goods which come into effect on August 23. The latest US list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion. Mutual Funds: Although aggregate net inflows into equity and equity linked savings schemes (ELSS) increased 28 percent in July over June, the Rs 10,585 crore July number is 10 percent down from the 2018 monthly average and a whopping 48 percent lower as compared to monthly record high, according to data from Association of Mutual Funds of India (AMFI) for the month of July. In fact in absolute terms, the inflows in July 2018 is back at what we saw in April 2015. (With inputs from Reuters)