The Indian equity market is likely to open flat on Friday ahead of the Reserve Bank of India’s (RBI) bi-monthly monetary policy announcement. At 7:40 am, the SGX Nifty was trading 38.55 points or 0.24 percent higher at 16,329, indicating a flat or mildly positive start for the broader index in India.
1. Wall Street: Stocks rose on Wall Street Thursday, notching more record highs for the S&P 500 and the Nasdaq. Investors were encouraged by improving job market data and some solid corporate earnings reports. The S&P 500 rose 0.6 percent, DJIA and Nasdaq rose 0.8 percent.
2. Asian stocks: Shares in Asia-Pacific struggled for direction in Friday morning trade as investors await the release of a closely watched US jobs report. In Japan, the Nikkei 225 gained 0.21 percent. South Korea’s Kospi rose 0.15 percent. The S&P/ASX 200 in Australia dipped about 0.1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat.
3. D-Street: Indian equity benchmarks extended their winning run to fresh record closing highs Thursday helped by gains in IT and metal shares amid positive global cues. The S&P BSE Sensex index rose 123 points to end at 54,492.84. And the broader NSE Nifty50 index gained 36 points to settle at 16,294.60 -- both record closing highs. Sensex and Nifty registered all-time highs of 54,717.24 and 16,349.45 during the session respectively.
4. Crude oil: US crude oil futures were on track for their biggest weekly decline since late October Friday, with prices coming under pressure as top consumers impose travel restrictions amid the spread of the Delta variant of the coronavirus. However, rising tensions in the Middle East provided a floor under the market. The two benchmarks of crude oil—Brent crude and US West Texas Intermediate—are on track for 6.6 percent loss this week, the biggest since mid-March and the end of October, respectively. While US WTI was unmoved at $69.09 a barrel, brent slipped 2 cents at $71.27 on Friday.
5. Gold: Gold on Thursday tumbled Rs 292 to Rs 47,892 per 10 grams amid weak global trends. Silver also plunged Rs 581 to Rs 67,607 per kilogram. In the international market, gold was trading lower at USD 1,810 per ounce and silver was flat at USD 25.37 per ounce.
6. Rupee: The Indian rupee on Thursday further consolidated gains and settled at 74.17 to the US dollar, a level not seen in nearly seven weeks, amid sustained uptrend in domestic equities. This was the best closing level for the domestic unit since June 21.
7. Cryptocurrency: Ethereum, the second-largest blockchain, went through a major software upgrade on Thursday. It was dubbed ‘London’ and is expected to stabilise transaction fees on the network and potentially reduce supply of the ether token. The coin was last trading 4 percent higher at $2,803, whereas Bitcoin was up nearly 3 percent at $40,625.
8. Retrospective tax: The government on Thursday introduced a bill in the Lok Sabha to amend the Income Tax Act and do away with the controversial retrospective tax demands in the process. Now no retro tax will be applicable for indirect tax transfer of Indian assets made before May 28, 2012. Continue reading
9. RBI MPC: The Reserve Bank’s Monetary Policy Committee (MPC) will announce its rate decision on Friday. It is likely to hold rates and maintain stance. Continue reading
10. Bad bank: The Standing Committee of Finance asked for a white paper on debt and fiscal consolidation from the government on August 5. It also pushed for the Reserve Bank of India’s (RBI's) intervention in the functioning of the bad bank, which the regulator rejects. The parliamentary panel observed that a clear and deep understanding of the debt and fiscal dynamics of the government is needed. Continue reading