MarketBuzz
1305: Marketbuzz Podcast with Kanishka Sarkar: Market to open in green after Fed rate cut hopes, Infosys in focus
[MUSIC PLAYING] Good morning, everyone. Welcome back to CNBC TV18's Market Bus Podcast. This is your host, Konniskasa Kar Binging. You talk developments from around the world ahead of today's trading session. And it's yet another day that we wait for the nifty 50 to cross 25,000. In normal market terminology, waiting for a period of three years or five years or beyond would be considered a test of patience. But the kind of market that we've seen over the last few months, even three days of waiting for a landmark and that not being materialized becomes a test of patience. Nifty and 25,000 are now separated by 49 points. It still seems a long way away considering the index came within 0.2 points of that on Monday. 30 points on Tuesday and 16 points on Wednesday, but could not cross that landmark. 24,984 was the high made by Nifty on Wednesday. And that now becomes the first hurdle to cross on Thursday. Global queues are very important today as the US Federal Reserve is possibly given what the street was looking for. It kept interest rates unchanged last night, but Fed Chair Jerome Powell said that a rate cut in September is on the table provided that data continues to be as encouraging as it is currently. Powell did cite progress in bringing inflation down to Fed's 2% target. Yet earlier mentioned that the central bank will not wait for inflation to fall to 2% before it starts cutting rates. Wall Street Chair, the Fed commentary with S&P 500 marking its best days since February this year, while the NASDAQ ended with gains of over 2%. This morning in Asia, equities and US futures were broadly higher and firming signs that the Fed will soon cut rates. Japanese stocks fell to reflect a stronger yen. Equities in Australia and South Korea rose alongside Hong Kong share futures, contracts with the S&P 500 and NASDAQ 100 both climbed to compound Wednesday's advances ignited by a tech rally. NVIDIA cops saw 13% during the main session last night, while meta platforms increased around 5% in post-market trade after beating sales forecasts. In terms of commodities, oil prices rose in early-ation trading, extending strong gains in the previous session after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict and on signs of strong oil demand in the US. Global benchmark Brent Crude rose 0.8% to $81.5 a barrel this morning. Now back home, Nifty ended the month of July with gains of 3.9%, following up 6.6% advance in June. Now, August generally has been a positive month for the Nifty as it has delivered positive returns in three out of last four years. Last year saw the index fall 2.5%, but it gained 3.5% in 2022, 8.7% in 2021, and 2.8% in 2020. The first day of the month will also be the weekly options expiry of Nifty 50 contracts. Meanwhile, Cole, India, Tata Steel, Bank of Baroda, Prestige Estates, Phoenix Mills, Relaxo Footwear are some of the earning reactions that will drag this morning. Thursday's session will also see Adani Nifty twins, enterprises and ports repot their results, along with Sanfama, ITC, Tata Motors, Darber, Kalyan, Jewelers, Thermax, Tube Investments, HPL Electric and Power and Gautrich Agrawet, among others. Infosys will also be in focus as the company is responded to a GST tax notice. It's said that it would like to clarify Karnataka state GST authorities issued a pre-show cause notice for payment of GST of 32,400 crore rupees for the period of July 2017 to March 2022 towards the expenses incurred by its overseas branch offices. The company is responded to the pre-show cause notice and said that subsequent to the publication of news articles, the company has also received a pre-show cause notice from director general of GST intelligence on the same matter and that it is in the process of responding to the same. The company believes that as per regulations, GST is not applicable on these expenses. Well, early this morning, Gif Nifty was trading 0.02% ahead of Nifty futures Wednesday close, implying a flat start for the Indian market today. In other news, India's fiscal deficit in Q2 is at 8.1% of FY25 target. Core sector growth slips to 4% in June from 6.4% in May. Now, RBI has given IDBI bank bidders to fit and proper knowledge. There's also a rush of representations to the government to review withdrawal of indexation benefit on reality. Mahindra and Mahindra said that it will consider hybrids if there's enough demand. Also, ransomware attacks hit hundreds of rural cooperative banks yesterday. A cloud bus was reported in Uttarakhand's Kedarna this morning in several of here trapped. Globally, according to an invitee report, Iran's Supreme Leader has issued orders for a direct strike on Israel. Trump has raised questions over whether Kamala Harris is really black. Lastly, the US has reached a plea deal with 9/11 mastermind. Well, those are the few news and huge track today. This is Kanshka Sarkar signing off. Stay tuned to CNBC TV18 for more. (upbeat music) (upbeat music) [BLANK_AUDIO]