The SGX Nifty is indicating a flat to positive open for the Indian markets today. At 7:20 AM, the SGX Nifty was trading 13 points higher at 11,493 levels. This comes on the back of a mixed set of global cues.
On Wall Street, overnight trading was mixed with the S&P 500 up 0.36 per cent and the Nasdaq adding 0.76 per cent, both hitting all-time closing highs. However, the Dow Jones, ended the session lower, falling 0.2 per cent. Investors now await a speech by Federal Reserve Chairman Jerome Powell today, when he is expected to address the US central bank’s view on inflation and monetary policy.
Asian stocks slid in early deals. Japan's Nikkei was last down 0.25 per cent while Australia's ASX and South Korea's Kospi both slipped over 1 per cent each.
Traders can expect a volatile session today ahead of the monthly derivative contracts expiry tomorrow. They may also react to the fine prints of the RBI's annual report released yesterday. Besides, media reports saying that the government may look at introducing a second set of fiscal stimulus measures once the Covid-19 infections abate may also influence investor sentiment.
India recorded 66,873 Covid-19 cases in the past 24 hours, taking its total way past the 32 lakh mark, according to Worldometer. The country's death toll is nearing 60,000.
On the results front, a total of 31 companies, including Indraprastha Gas and Gillette India, are scheduled to announce their June quarter results today.
Besides these, a string of rating actions on individual stocks and India's GDP might be a major factor in today's session.
Ratings agency Icra has pegged contraction in Indian GDP by 25 per cent in the June quarter, which witnessed the strictest coronavirus-induced lockdowns. Foreign brokerage Barclays also estimated the economy to have contracted by 25.5 per cent in the June quarter saying the virus containment measures have "dealt an unprecedented blow to the economy".
Meanwhile, Moody's Investors Service has retained its projection of 3.1 per cent growth contraction for India in 2020. For 2021 year, though, Moody's has projected Indian economy to grow 6.9 per cent. It said that an economic recovery is underway, but its continuation will be closely tied to the containment of the virus.
The rating agency has, meanwhile, downgraded SBI's baseline credit assessment, saying the economic shock from the Covid-19 pandemic may aggravate the weakening borrowers’ credit profiles.
Other financial stocks may also remain volatile as the Supreme Court is expected to hear the interest waiver case later today.
In another development, S&P Global has said that TCS is likely to face slower growth in revenue and profitability over the next 12-18 months, given subdued global IT spending.
And now a quick look at other top news.
Finance Minister Nirmala Sitharaman yesterday said the GST Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers, which are now taxed at the highest slab rate of 28 per cent. According to sources, the issue might be taken up in the council's September 17 meeting.
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