News and Impact
· Expects market to open on a flat note on account of global cues. Asian markets open on a flat to negative note while overnight US and European market fell between 1-2% after US data showing a slowdown in consumer spending the main driver of the US economy fueled concern about a recession. US consumer spending fell for the first time this year, suggesting an economy on somewhat weaker footing than previously thought amid rapid inflation and Federal Reserve hikes. US 10-Year Bond fell to over 1-month low to 3% from record high of 3.5%. Expects rangeboud market today ahead of quarter results to be announce next week. SGX Nifty is trading flat today while US Dow Future slipped 0.2%. Positive factor in the domestic market that the Brent crude decline sharply from $118/bbl to $110/bbl (one of the biggest fall since last 6-month) and Core sectors surged to 13-month high. However, poor July roll over and continued FIIs selling may dampen the market sentiment. Traders buy on decline strategy in the market and expects stock specific action. Metal stocks may negative due to sharp decline across the asset class like Copper, Zinc, Aluminum price fell to 1-2 year high low), silver price 2-year low and Gold pride fell to 6-week low. Auto stocks will be focus today ahead of June monthly sales to be announce todayUS equity benchmarks declined on Thursday as consumer spending rose at half the projected pace for May while Federal Reserve's preferred inflation gauge showed continued signs of a slowdown. S&P 500, Dow Jones and Nasdaq Composite declined 1% each. Investors weighed rising interest rates against recession fears, with central bankers warning of a longer-lasting inflation shock.
· Asian stocks struggled to make progress on Friday as investors assessed worries about an economic slowdown and whether any relief lies ahead after a first-half drubbing for global markets. Shares fell in Japan, Taiwan and South Korea
· European markets decline sharply as investors focused on the prospects for economic slowdown and stubbornly high inflation in the region. UK, Germany and France Index slipped 2% each. Surging oil prices, higher rates and concerns of a recession pulled down European markets.
· Brent Crude declined sharply by 6% to $110/bbl on concern that a potential recession will cut into energy demand and OPEC+ approved plans to add 648,000 barrels a day in August.
· Gold slipped over 1% to $1806/ounce as investors weighed interest-rate rises that damp the allure of the metal against downturn risks that could boost its haven appeal.
· Actionable - L&T, MCX, Bharti Airtel
· Brokers Radar – Infosys TGT by Credit Swiss at 2050, Reliance Industries TGT by Credit Swiss at 2510, Infosys TGT by Nomura at 1710. Citi 1740, CITI TGT on TCS at 3130 and HSBC TGT at 3570
· Events – Single use plastic ban from today, Tata Motor price hike by 1-5% -2.5% from today, Hero Motocorp price hike by Rs3000 from today. Xpro India bonus 1:2, Tide Water dividend Rs15, Jyothy Labs dividend Rs2.50, Geojit Financial – dividend Rs3
· Global Data – ISM Manufacturing and ISM New Orders (US), S&P Global India PMI Manufacturing Data (India)
· Market Summary – Reliance to launch UK sandwich outlet Pret A Manger in India, Google cleared to buy 1.28% stake in Bharti Airtel, Bajaj Finance hikes deposit rates, yet again, PM inaugurates Bosch India's 'smart' campus in Bengaluru, Dr. Reddy's Lab announces conclusion of patent litigation with Indivior Inc, McDonald's India launches first all-women drive-thru restaurant, Gujarat, TTK Prestige Concludes Long-term Settlement with Workers
· Coal India: Coal India Ltd is looking at taking all its eight subsidiaries public as prices of the fossil fuel soared after power demand rebounded from the pandemic, a government official aware of the development said. - positive
By: via @AlliesFin Serve Stock Market
