Trade Setup for Thursday 10 Aug: Stock Market Today
Trade setup for Thursday 10 Aug 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens and ahead of Trade Setup today.
Asian Stock Markets
Asian stock market indexes are mostly trading lower on Thursday, as investors are waiting for the July CPI inflation reading from the US later in the day. The economist poll in Reuters expected the inflation to come at 3.3% slightly higher than the previous month of 3%.
Nikkei is trading higher by 0.10 percent, as Japan’s wholesale inflation rate slowed to 3.6%, down from the revised rate of 4.3% in June. Kospi is trading lower by 0.39 percent. Shanghai is trading higher by 0.10 percent while Hang Seng is trading lower by 0.52 percent. Elsewhere, Taiwan, Straits Times are trading in the red at 7.10 am IST
Gift Nifty is trading flat at 19607 levels. The indication getting from the Asian markets at this moment is slightly negative. Indian stock market indexes are likely to open flat but remain volatile throughout the day.
U.S. Stock Market Indexes Update
The US stock markets ended lower on Wednesday, as tech stocks fell ahead of the inflation data. The big tech stocks including Meta, Google, Microsoft, and Apple ended lower ahead of the CPI inflation reading which is due on Thursday. Meanwhile, the Energy stocks closed higher due to rising crude oil prices.
The casino company Penn Entertainment gained 19% after it said launching an online sportsbook and signed a $2 billion deal with ESPN. Walt Disney’s quarterly earning reports after the markets, its Q3 revenue misses estimates and plans to raise prices of streaming services. The yields on benchmark 10-year U.S. Treasury yield ticked lower to 4.014%, from the previous close of 4.024%.
The US benchmarks Dow Jones and S&P 500 declined by 0.54 percent and 0.70 percent respectively, while Nasdaq was down by 1.17 percent on Wednesday.
European Stock Market Indexes Updates
European stock market indexes closed higher on Wednesday, as investors digested China’s disinflation data and clarification on Italy’s windfall tax on Banks. Earlier China reported that its CPI-based inflation slipped into negative territory in July for the first time in 28 months.
On Tuesday, European markets fell sharply after the Italy government announced a 40% tax on the profits banks earn from higher interest rates. Late Tuesday, Finance Ministry clarifies tax would be capped at 0.1% of assets, which will only apply to the income that comes from the gap between the bank’s lending and deposit rates.
Almost all sectoral indices closed in the positive territory, oil & gas gained the most while travel and leisure stocks ended lower on Wednesday. The pan- European Stoxx 600 index closed higher by 0.43 percent. The European stock market indexes CAC and DAX gained by 0.72 percent and 0.49 percent respectively while the UK’s FTSE was up by 0.79 percent.
Indian Stock Market Indexes
Indian stock market indexes pared intraday losses and closed higher on Wednesday. The domestic markets got some support from the European markets and recovered in late trade. Traders remained cautious ahead of the RBI monetary policy outcome, which is due on Thursday morning at 10 am IST.
The market breadth was positive with the advance-decline indicating a ratio of 4:3 at the close. FIIs turned into net buyers after selling nine consecutive trading sessions, they bought shares worth Rs 644.11in the Indian equity march cash segment. DIIs also turned into sellers on Wednesday and they offloaded shares of Rs 597.88 crore on Wednesday.
Quarterly Earnings (Q1FY24)
Hero MotoCorp, Life Insurance Corporation of India, Grasim Industries, Ipca Laboratories, Biocon, Alkem Laboratories, Manappuram Finance, Allcargo Logistics, Apollo Tyres, Mazagon Dock Shipbuilders, Samvardhana Motherson International, MTAR Technologies, Page Industries, Pidilite Industries, Steel Authority of India, Ashoka Buildcon, Avalon Technologies, Bajaj Electricals, Campus Activewear, General Insurance Corporation of India, Graphite India, Indiabulls Real Estate, Lemon Tree Hotels, Spencers Retail, Suryoday Small Finance Bank, and Torrent Power and others will announce their Q1FY24 quarterly earnings on Aug 10.
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