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Weakness in global markets, Will Nifty continue to consolidate?

Good Morning Everyone, As discussed yesterday, the Global markets have gone into a cautious mode as we wait for the announcements from the 2 days Jackson Hole symposium going on in the US which started yesterday. However, we can see the changes in the market only next week as our market will close for this week today. Don't have a trading account yet? Click here to open your account in 10 minutes and start investing in sharemarket from today.

Global Markets:

The Dow Jones Industrial Average was down 53.39 points, or 0.15%, at 35,352.11 and the S&P 500 was down 10.14 points, or 0.23%, at 4,486.05. The Nasdaq Composite was down 22.96 points, or 0.15%, at 15,018.90.

Asia-Pacific markets tumbled in early trade this morning as investors remained cautious ahead of the Federal Reserve’s annual Jackson Hole symposium. In Australia, the benchmark ASX 200 fell 0.29 percent with most sectors trading lower. The Nikkei 225 in Japan declined 0.85 percent while the Topix index fell 0.74 percent. South Korea’s Kospi was down 0.33 percent.

Profits at China’s industrial firms grew at a slower rate of 16.4% on year to 703.67 billion yuan ($108.6 billion) in July, the statistics bureau said on Friday, as elevated commodity prices and supply chain constraints from extreme weather weighed on the sector.

The July growth rate compared with a 20% gain in the previous month. The pace of growth has been slowing for five consecutive months.

For the January-July period, industrial firms’ profits rose 57.3% year-on-year to 4.92 trillion yuan, slowing from a 66.9% increase in the first half of 2021

The US economy grew at a robust 6.6% annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report. But worries are growing that the delta variant of the coronavirus is beginning to cause a slowdown.

The government’s upgraded estimate for growth in the April-June quarter fell short of expectations. Some economists had predicted a 7% annual rate or more. They based that view on a belief that consumer spending had accelerated even faster than the 11.8% rate first reported. Thursday’s revised estimate for consumer spending, which drives about 70% of economic activity, was upgraded by 0.1 percentage point to 11.9%.

Indian Market:

The trends on the SGX Nifty indicate a cautious opening of Nifty almost flat, close to yesterday's close. However, we might see a moderate up move, after which there could be sustained selling in the market as many traders will plan to exit their positions ahead of the outcome of the Jackson Hole symposium in US.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,974.48 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,055.21 crore in the Indian equity market on August 26

If the monsoon rainfall continues the present pattern, the country is facing a drought-like situation in the coming days. India's total monsoon rainfall is 10% below normal since its arrival on June in Kerala.

⦁ The country recorded low rainfall in July and the worst in recorded monsoon in August, a 28% deficiency.

⦁ Around one-third of the country has not got enough rain.

This could affect the sales of Agri related industries and hence may come down. Watch tractor & fertilizer companies.

The government is speeding up its processes to launch a special purpose vehicle to monetise the surplus land. The effort is part of its Rs 6-lakh-crore asset monetisation program to augment government coffers.

⦁ The government has huge land parcels sitting idle with public sector companies, ministries, and departments.

The income-tax department has issued several notices to foreign portfolio investors for faulty tax filings. However, the tax experts are suspecting it is due to some technical glitches.

⦁ The IT department is asking FPIs to rectify the defects soon and present balance sheets.

⦁ The FPIs are upset with the new developments and point out that this move is going to lower the image of India's tax regime.

The Life Insurance Corporation of India is still the biggest support of PSU banks when it comes to raising funds. LIC has bought nearly a fourth of the ₹7,800 crore shares sold by five PSU banks in this fiscal.

⦁ This is around a fourth of the total funds raised.

⦁ The banks are Canara Bank, Punjab National Bank, Indian Bank, Bank of Maharashtra, and Union Bank of India.

Stock Specific News:

Infosys | Infosys Public Services Inc (IPS), a subsidiary of Infosys, on Thursday said it has been awarded a contract by Manitoba Public Insurance (MPI) to digitise driver licensing, vehicle registration, and International Registration Plan (IRP) services for over 900,000 Manitobans.

Wipro | The company signed a strategic partnership with DataRobot to provide Augmented Intelligence at scale, to help customers become AI-driven enterprises, and accelerate their business impact.

IDFC First Bank | The RBI approved the appointment of Sanjeeb Chaudhuri, Independent Director, as the Part-Time Chairman of the bank, for a period of three years.

SpiceJet | The Directorate General of Civil Aviation (DGCA) has lifted the ban on Boeing 737 MAX aircraft after almost two-and-half years. The move has come as a relief for SpiceJet as it has 13 Boeing Max aircraft in its fleet.

InterGlobe Aviation | IndiGo will start eight new domestic flights during the first week of September, connecting cities including Dehradun, Indore, and Lucknow.

BHEL | The company has signed an MoU with JSC Rosoboronexport, to cooperate and implement possible joint projects and activities for joint production of spare parts and components for Russian-origin equipment installed onboard the Indian Navy Aircraft Carrier “Vikramaditya” and maintenance of systems and equipment of the aircraft carrier and on other issues of mutual interest.

Jindal Poly Films | The company has acquired 100 percent shares of Jindal India Solar Energy and consequent thereof Jindal India Solar became a wholly-owned subsidiary.

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