MARKETS THIS MORNING: June retail inflation data, Q1 results crucial

                                                   By TC MATHEW

The retail inflation data for June and the Q1 earnings of companies will drive the market starting tomorrow. Today's inflation data is expected to show a slight increase. Analysts predict a decline in TCS's quarterly profit.

In light of such concerns, profit booking has continued to dominate the market. Additionally, price reductions by Mahindra & Mahindra and Maruti for their SUVs have added to the market's weakness. However, the underlying bullish sentiment remains unchanged.

In the derivatives market, the GIFT Nifty closed at 24,407.50 on Wednesday night and was at 24,395 this morning, indicating a positive start for the Indian market today.

Global markets at a glance  

European markets rose nearly 1% on Wednesday. Despite ongoing political uncertainty in France, investors did not see a reason to pull back.

US markets rallied strongly yesterday. The Dow Jones increased by 1%, and other indices set new records for the seventh consecutive day.

Fed Chairman Jerome Powell's statement yesterday boosted market optimism. Powell mentioned that prolonged high interest rates could harm growth. The US retail inflation data will be released today.

The Dow Jones index surged by 424.39 points (1.09%) to close at 39,721.40. The S&P 500 rose by 56.93 points (1.02%) to close at 5633.91. The Nasdaq gained 218.16 points (1.18%) to end at 18,647.40.

US futures are down this morning. The Dow, S&P, and Nasdaq futures rose by 0.12%, 0.14%, and 0.20%, respectively.

Asian markets are up today, with Japan's Nikkei crossing the 42,000 mark, setting a new record.\

Indian markets 

The Indian market, which opened with a slight gain on Wednesday, plunged sharply. After recording new highs in the morning, indices fell steeply. Despite a significant recovery in the afternoon, major indices closed by nearly half a percent. Except for pharma, healthcare, and FMCG, all sectors experienced losses. Auto (-2.02%), IT (-1.03%), metal (-1.61%), and PSU bank (-1.4%) sectors led the decline.

The Sensex fell by 426.87 points (0.53%) to close at 79,924.77. The Nifty declined by 108.75 points (0.45%) to end at 24,324.45. The Bank Nifty lost 0.72% (379.5 points) to close at 52,189.30.

The mid-cap index, after rising by 2100 points, closed with a 0.27% loss at 56,921.15, while the small-cap index fell by 0.88% to close at 18,789.75.

Foreign investors bought shares worth ₹583.96 crore in the cash market on Tuesday. Domestic funds and institutions purchased shares worth ₹1082.40 crore.

The Nifty closing above 24,300 has maintained the bulls' enthusiasm. If it crosses 24,500, the next major resistance level will be at 24,800.

Today, the Nifty has support at 24,185 and 24,110 levels, with resistance at 24,430 and 24,505 levels.

Mahindra & Mahindra reduced the price of its popular SUV brand XUV by ₹200,000 due to sluggish sales, causing its stock to drop by 6.6%. Maruti Suzuki also reduced SUV prices and announced discounts up to ₹50,000, which led to a 1% drop in its stock. On Tuesday, Maruti had gained over 6% due to the waiver of registration fees for hybrid vehicles in Uttar Pradesh but fell after a 4% rise in the morning.

Paint price increases lifted the shares of Asian Paints and Berger Paints. Life insurance companies' premium rate hikes of up to 10% also boosted their stock prices.

Gold rising

Gold rose slightly on Wednesday, closing at $2371.70 per ounce, and climbed to $2376 this morning. The market is driven by expectations of a rate cut in September.

In Kerala, gold remained steady at ₹59,680 per sovereign yesterday but is expected to rise today. Silver is priced at $30.80 per ounce and ₹98,000 per kilogram in Kerala.

The dollar index closed slightly lower at 105.05 on Tuesday and dropped to 104.99 this morning.

The rupee strengthened in the morning but weakened at closing, with the dollar rising by four paise to ₹83.52.

Crude oil prices increased due to a decline in US stockpiles. Brent crude closed at $85.08 yesterday and rose to $85.76 this morning. WTI crude is at $82.75, and UAE's Murban crude is at $85.05.

Industrial metals remained weak on Wednesday. Copper fell by 0.68% to $9695.50 per ton, and aluminum dropped by 1.72% to $2483.80 per ton.

Cryptocurrencies continue to hold high levels, with Bitcoin at $57,700 and Ether rising to $3100.

Market Indicators (July 10, 2024, Wednesday)