MarketBuzz
1307: Marketbuzz Podcast With Hormaz Fatakia: Sensex, Nifty to open gap-down as global market sell-off continues
Good morning and welcome to CNBC TV18's Market Bus Podcast. I'm Harmas Patakya. Well, it does not look to be a very good morning if you are a bull because the gift nifty is indicating a gap downstart of well over 350 points for our own markets. Now, this is in continuation of the global market sell-off that has been ongoing since last week. The US markets saw a continuation of that on Friday as fears are now abound on Wall Street that the Fed has been too late in starting to cut interest rates. Now, the Nasdaq went into correction territory meaning a decline of over 10% from the recent highs that it made last month. And that does not appear to be awaiting any time soon because the Dow futures this morning are down over 350 points as well while the Nasdaq futures in the US are down over 450 points or over 2.5% as we speak. And that has rubbed off on the Asian markets as well. The Japanese indices that were down over 5% last Friday are down another 7% this morning. The Nikkei is hovering close to bear market territory now just three weeks after it made a new record high on the 11th of July. The yen continues to strengthen in the region against the US dollar and the Bitcoin has also declined to the lowest level in a month after witnessing its worst week since the FTX crisis last week. Now there are some important questions that need to be asked ahead of today's trading session. It's most likely to be a gap down start. So, will these gap down get bought into? The technical analysts have called for key supports on the NFTI between 24-600 and 24-500. It will be interesting to see if these levels sustain by close because the start is most likely to be below both these levels. Now, the second important question is whether the market sell-off will have a sharper impact on the broader market. Now, the mid-cap and the small-cap indices have been out performers even when the benchmarking indices were sluggish. So, now whether they'll see a sharp or fall particularly the so-called overvalued names with low float within the PSU basket will keep an eye out on these stocks as well. And lastly, what kind of impact will this sell-off have on the sentiment in the primary markets? Now, remember, OLA Electric's IPO is currently open for subscription and figures were mostly sluggish for the first day. But then in such IPO subscription figures generally tend to pick up during the second and the third day. So, whether this will sour sentiment in the IPO markets as well, that remains to be seen. Now, IT stocks were one of the worst hit on Friday and the kind of moves that we've seen on the NASDAQ, will that have an impact on the IT stocks as well? Well, there are plenty of questions and these will be answered during the course of the day. Now, earnings season, of course, continues and there are plenty of earnings reactions today as well as BI, Titan, DVs, laboratories, Britannia. The SBIs results were marginally below estimates but brokerages have assigned targets as high as 1,075 for India's largest lender forecasting of 15 to 16 percent medium-term ROE. Titan and Britannia will also be in focus with Titan's results not as bad as feared and Britannia's volume growth being in line with expectations with gross margins also seeing an expansion. The Bharati twins, ETL, and Hexacom will report results today along with names like Honeywell Automation, Mariko, Deepak Nitrite, and others. And Bharat Ford should keep an eye out on that as well because the Class 8 truck orders have declined to a 15-month low in the month of July. And that's all for today. There are plenty of stocks to keep an eye out for but the focus today will be on the benchmark indices and how they managed to perform post this potential gap downstart. Thank you for tuning in and goes without saying we'll keep you updated with all the market insights on CNBC TV18 and cnvctv18.com.