MarketBuzz
1278: Marketbuzz Podcast with Kanishka Sarkar: Sensex, Nifty 50 to open lower, CarTrade, fertiliser firms in focus
Good morning, everyone. Welcome back to CNBC TV18's Market Bus podcast. This is your host Kanishka Sarkar bringing you all the important updates ahead of today's trading session. On Friday, frontline indices consolidated higher, whereas the sectoral rotation continued with banks doing really well last week. Bant Nifty ended 3.5% higher. The Nifty meanwhile, have been puffed, but managed to echo some weekly gains on Friday despite ending in the red. It has been under a positive consolidation for the last nine trading session and has not seen a move of 1% or more on either side since June 7. At one point on Friday, the Nifty had slipped below 23,400, but managed to recover over 100 points from the days low to end right at the 23,500 mark. The immediate support for Nifty stands at 23,474, whereas the low of 23,206 will be the next downside level to watch. Monsoon progress is also very critical as June has seen poor rains across the country. Meanwhile, India has to be included in the GBI, EM Global Diversified Index from June 28. Also, bond markets could see inflows of $30 billion over the next 10 months. The upcoming week will be the June F&O expiry, and it has already been a thousand point series for the Nifty on the upside. While it will aim to end the week and the series on a high, the question is, will it get the required support from banks and IT stocks that let support the index for most of last week. IT stocks shared Accenture's result on Friday, but most of them gave up early gains, still managing to end higher. The Nifty bank though was the star of the week gone by, and when that came off highs on Friday, it took the Nifty along with it as well. This morning, GIF Nifty was trading with a discount of nearly 40 points from Nifty futures Friday close, indicating a start in the red for the Indian market today. While the Nifty remains in consolidation mode, the action will line specific stocks as has been the trend in the last few trading sessions. Most of the GST linked names from fertilizers to road construction companies to even gaming firms like Delta kop may see a reaction during Monday's trading sessions. Blog deals also continue with card trade tech likely to see one go through on Monday. Also, the focus is starting to move towards budget expectations now. In fact, with preps underway, several reports are hinting at a potential windfall for the middle class. According to a CNBC Abbas report, the government is prepping to provide some relief to the middle class in this year's budget. Various options are being considered with most likely scenario involving changes to the current income tax labs of 20% and 30%. Presently taxable incomes up to 15 lakh rupees incur a tax rate of up to 20%, which increases to 30% beyond this threshold. So the Abbas report suggests that the finance ministry may introduce an additional tax lab or alter the existing rates. The rationale behind these changes is to put more money into the hands of individuals in this income group. Additionally, adjustments might also be made to lower tax labs to make the new tax regime more attractive. In other news, in response to reports of a certain Caesar operation by the Securities and Exchange Board of India are savvy. Due to suspicions of front running, quant neutral fund has issued a statement. It has emphasized its commitment to full cooperation with the regulator and maintaining transparency. It admitted that quant neutral fund is received inquiries from SEBI, and it wants to address any concerns that investors may have regarding this matter. It will provide all necessary support and continue to furnish data to SEBI on regular and as needed spaces it says. The market regulator conducted search and seizure operations on Sandeep tendon-owned quant neutral fund, suspecting front running activities. Sources have revealed that the operation took place on Friday and Saturday, covering premises in Delhi, Mumbai and Hyderabad. Apart from GST link names, card rate, banks and IT, other stocks in focus include Ovedanta, whose parent company Vedanta resources has denied reports of motors planning a stake sale in Vedanta. The Plasheh will also be tracked as the USFT has issued 483 or 483 with six observations for its gua facility. The USFD has also issued four observations of Biokhan's API facility in Vishakapatnam. Meanwhile, Sunfama has announced outcome of phase 1 obesity trial of GL0034, which is a GLP inhibitor drug. The drug is still in very early stages of development and adds to the prospect of the company's speciality business. Lupin has got an establishment inspection report or EIR from the USFDA for its somaset manufacturing facility with a voluntary action-indicated status. MCX board has shortlisted names of candidates for the post of its next MD and CEO. The company will initiate seeking regulatory approvals for the appointment. Now, prestige estate boards, on the other hand, is approved raising of up to 5,000 crore rupees via QIP and other methods. PB Fintech has signed an agreement to disperse an unsecured loan of 200 crore rupees to policy bazaar and 50 crore rupees to pay sub bazaar. Now, in terms of global queues, Asian shares as lower this morning, kicking off a week that includes measures of inflation that will help guide bets on the outlook for global interest rates. The index of the region's stocks was set to slip for a third session on Monday with equities in South Korea falling and those for Japan swinging between gains and losses. Contracts for Hong Kong shares pointed to decline with US equity futures with steady after the S&P fell on Friday amid large options expiry. The move comes as markets are at a critical juncture for positioning into the second half of 2024 with the outlook for central bank policy rates from New Zealand to Japan and the US unclear. Inflation prints in Australia and Tokyo as well as the federal reserve's preferred God of consumer cost may help after data showed US services activity picked up to the faster pace in more than two years. On Friday in the US, the S&P 500 takes lower as shares of market bellwether and media pulled back for a second day and media shares declined 3.2% after hitting an all-time high on Thursday before closing more than 3% lower. Overall, the S&P 500 fell 0.16% while the NASDAQ composite dipped 0.18%. The Dow Jones Industrial Average edged up 0.04%. This week, while parsing inflation data, traders will also be watching rising political risk. The first UK prime ministerial and US presidential debates are scheduled and the first round of voting in the French legislative election is set to take place this coming weekend. Traders and strategists are beginning to question how long this year's rally can persist as burned and currency markets dried from shifting pets on central bank rate cuts and election uncertainty in Europe. A God of global equities has climbed 2.3% this quarter set for a third trade quarterly gain while US stocks have not freshhized this month amid the A.I. frenzy. In commodities, oil extended Fridays declined towards the $80 a barrel amid a stronger greenback and a technical indicator suggesting the recent rally has gone too far. Gold fell amid a rethink of the Fed's free cut outlook. Those are the few cues to watch out for today. Stay tuned to CNBC TV18 for more news and cues. [MUSIC] [BLANK_AUDIO]