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US markets again closed with record highs yesterday. The Dow Jones Industrial Average was up 205.61 points, or 0.59%, at 34,998.28, the S&P 500 was up 18.85 points, or 0.43%, at 4,421.51 and the Nasdaq Composite was up 92.02 points, or 0.62%, at 14,872.55.
Shares in Asia-Pacific largely slipped in Friday morning trade as investors await the release of a closely watched US jobs report.
In Japan, the Nikkei 225 gained 0.11% while the Topix index sat fractionally lower. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.37% lower.
A surge in imports of industrial supplies drove the US trade deficit to a record in June, according to government data released Thursday, a sign global supply chains may be coming back online after the pandemic disruptions.
The number of Americans filing new claims for unemployment benefits declined further last week, while layoffs dropped to their lowest level in just over 21 years in July as companies held on to workers amid a labor shortage.
Trends on the SGX Nifty hint at a small gap up, however, we need to wait and watch if it can sustain higher levels after such a big bull run for the last 3 days. I feel it's time for Nifty to consolidate for the week.
Something that I will closely watch for today is the announcements from the RBI monetary policy meet ending today.
The three-day monetary policy committee (MPC) meeting has begun on August 4 and the rate-setting panel will announce its decision today. It is extremely unlikely that the MPC will tinker with rates and move either way on the rate stance. A majority of the economists expect no change in rates or MPC's policy stance. High inflation and uncertain growth scenario will likely force the policymakers to continue on a wait-and-watch mode for more cues. Rate-sensitive stocks including banks, realty, and auto will be in focus. Names like SBI, PNB, ICICI Bank, HDFC Bank, Maruti Suzuki, Hero MotoCorp, DLF, Oberoi Realty, Godrej Properties, and Sobha among other names will be in focus.
Hindalco Industries, Mahindra & Mahindra, Aarti Industries, Abbott India, Alkem Laboratories, Anupam Rasayan India, APL Apollo Tubes, Asian Granito India, AU Small Finance Bank, Balkrishna Industries, BASF India, Bharat Electronics, BEML, Berger Paints India, Graphite India, Indigo Paints, JK Tyre & Industries, Metropolis Healthcare, MTAR Technologies, Muthoot Finance, NALCO, Piramal Enterprises, SAIL, Sandhar Technologies, Sona BLW Precision Forgings, Tata Power Company, Torrent Power, Ujjivan Small Finance Bank, Voltas, and Zee Entertainment Enterprises.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 719.88 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 731.92 crore in the Indian equity market on August 5.
Stock Specific News:
Banks | The banking stocks will be in focus ahead of the Reserve Bank of India’s (RBI) bi-monthly monetary policy announcement. The RBI’s Monetary Policy Committee is likely to hold rates and maintain an 'accommodative' stance.
Reliance Industries | The company’s subsidiary Reliance Strategic Business Ventures Ltd (RSBVL) has invested Rs 20 crore in Neolync Solutions Pvt Ltd. Another Rs 40 crore worth of investment is expected to be completed by March 2023 following the completion of agreed milestones, the company said.
Maruti Suzuki India | The company's total production in July increased by 58.5 percent on a yearly basis to 170,719 units.
Cipla | The company’s Q1FY22 consolidated net profit rose 23.7 percent to Rs 714.72 crore from Rs 577.91 crore, revenue increased 26.6 percent to Rs 5,504.35 crore from Rs 4,346.16 crore, YoY.
Indiabulls Housing Finance | The company reported a 3.3 percent rise in Q1FY22 net profit at Rs 282 crore from Rs 273 crore and net interest income (NII) growth of 4.7 percent at Rs 765 crore from Rs 731 crore, YoY.
PVR | The company has opened four screens in Director’s Cut at Ambience Mall in Gurugram, Haryana.
Gujarat Gas | The company’s Q1FY22 net profit rose 36.1 percent to Rs 476.2 crore from Rs 350 crore, while revenue fell 12.2 percent to Rs 3,011 crore from Rs 3,429 crore, QoQ.
Adani Power | The company reported consolidated profit at Rs 278.22 crore in Q1FY22 against a loss of Rs 682.46 crore in Q1FY21. Revenue rose to Rs 6,568.86 crore from Rs 5,203.83 crore, YoY.
Aditya Birla Capital | The company’s Q1FY22 net profit jumped 52 percent to Rs 302 crore from Rs 198 crore and revenue rose to Rs 4,632 crore versus Rs 4,292 crore, YoY.
Thermax | The company posted a net profit of Rs 42.4 crore in Q1FY22 against a loss of Rs 15.3 crore, YoY. Revenue rose 57.1 percent to Rs 1,077.7 crore from Rs 685.9 crore, YoY.
Tata Chemicals | The company’s Q1FY22 net profit spiked to Rs 342.1 crore from Rs 74.1 crore and revenue increased 26.8 percent to Rs 2,977.2 crore from Rs 2,348.2 crore, YoY.
Cholamandalam Financial Holdings | The company’s Q1FY22 consolidated net profit fell to Rs 357 crore from Rs 589 crore, YoY.
NCC | The company reported a higher net profit at Rs 58.9 crore in Q1FY22 as against Rs 17 crore, YoY. Revenue was up 59.1 percent at Rs 2,064.3 crore versus Rs 1,297.6 crore, YoY.
Quess Corp | The company reported higher consolidated profit at Rs 44.63 crore in Q1FY22 against Rs 36.45 crore in Q1FY21, revenue increased to Rs 298.69 crore from Rs 240.94 crore YoY.
Honeywell Automation India | The company reported lower profit at Rs 91.53 crore in Q1FY22 against Rs 98.08 crore in Q1FY21, revenue fell to Rs 683.20 crore from Rs 736.23 crore YoY.