Pre Market updates for 08 July 2022

*SGX Nifty +111 pts (16272) from last trade 16161 ,*

Nikkei +268 pts ,

Hangseng +318 pts ,

Now @6.52am .

Dow +346.87 pts ,Nsdq +259.49 pts, S&P

+57.54 pts, Bovespa +2010 pts , Ftse +81 pts , Dax +248 pts , Cac +94 pts , Crude @ $102.66 brl (-0.07), Brent @ $104.55 brl (-0.10) , Gold @ 1742.40 (+2.60), Silver @ $19.23 (+0.04), Euro @ $1.0186, JPY @ $135.84,  INR @ 79.155

*Today's Corporate Action*

*8th July Ex Date*

JUBLFOOD

Final Dividend - Rs. - 1.2000

LUMAXIND

Final Dividend - Rs. - 13.5000

LUMAXTECH

Final Dividend - Rs. - 3.5000

MAHACORP

Right Issue of Equity Shares 

PRESSMN

Final Dividend - Rs. - 1.0000

TITAN

Dividend - Rs. - 7.5000

*Today's Key Results/Board Meetings*

*8-Jul-22*

ALFAVIO

General;Stock  Split 

BRAHMINFRA

Audited Results 

DHANCOT

General  

INDOUS

A.G.M.;

Preferential Issue of shares

KOHINOOR

General;Quarterly Results

MARKSANS

Buy Back of Shares 

MMTC

Audited Results 

MORARKFI

Quarterly Results 

SPECFOOD

Quarterly Results 

SUKHJITS

A.G.M.;General 

SURYAINDIA

A.G.M.;General 

TCPLPACK

Employees Stock Option Plan

TCS

Interim Dividend;Quarterly Results

VISHWARAJ

A.G.M.General 

*Stock under F&O ban on NSE*

*8-Jul-22*

*Very Good Morning!!!* 

*US Markets in Detail!!*

Today:

*Listing of Bonus Equity Shares of Nazara Technologies Ltd*

3,28,32,304 Bonus Equity of Rs. 4/- each allotted on June 29, 2022.

*Listing of Bonus Equity Shares of INDIAN OIL CORPORATION LTD*

470,70,79,461 Bonus Equity of Rs. 10/- each allotted on July 04, 2022

*Provisional Cash Rs. In Crs. (7th July)*

FIIs: -925 (5,848 – 6,773)

DIIs: +981 (6,975 – 5,934)

Sensex: 54,178: +427: +0.80%

Nifty: 16,234: +102: +0.63%

BankNifty: 34,920: +596: +1.74%

NiftyIT: 28,196: +189: +0.67%

MIDCAP: 22,611: +265: +1.19%

Dow: 31,385: +347: +1.12%

S&P: 3,903: +58: +1.50%

Nas: 11,621: +260: +2.28%

Brazil: 100,729: +2,011: +2.04%

Ftse: 7,189: +81: +1.14%

Dax: 12,843: +249: +1.97%

Cac: 6,007: +94: +1.60%

MOEX: 2,227: +5: +0.21% 

WTI Oil: $102.73: +4.2: +4.26%

Brnt: $104.16: +3.4: +3.45%

Gold: $1,740: +3: +0.18% 

Silver: $19.19: +0.15%

Copper: $357: +16: +4.81%

Copper (LME): $7,521 (-150) (-1.95%)

Alluminum (LME): $2,410: +18: +0.73%

Zinc (LM): $2,998: +6: +0.20%

Tin (LME): $24,712 (-1,288) (-4.95%)

Eur-$: 1.0163

GBP-$: 1.2022

Jpy-$: 136.03

Re: 79.1775 (-0.16%)

USD = RUB: 64.0354: +1.92%

US10yr: 2.99%

GIND10YR: 7.354: +0.82%

$ Index: 107.064 (-0.03%) 

US Vix: 26.08 (-2.43%)

India Vix: 19.20 (-5.28%)

BalticDry: 2,043 (-55) (-2.62%)

*ADR/GDR*

Cogni (-0.65%)

Infy: +1.22%

Wit: +1.87%

IciciBk: +3.08%

HdfcBk: +4.10%

DrRdy (-1.39%)

TataMo: +4.84% 

TatSt: +5.99%

Axis: +1.93%

SBI: +2.33%

RIGD: +0.17%

INDA: +0.37% (IShares MSCI INDIA ETF)

INDY: +0.60% (IShares MSCI INDIA 50 ETF)

EPI: +0.80% (Wisdom Tree India Earning)

PIN: +0.68% (Invesco India Etf)

*Latest: Stock futures slipped in overnight trading down around 0.10% - 0.14% following a rally on Wall Street as investors await a key jobs report Friday.*

*S&P 500, Nasdaq book longest win streak since March as investors await Friday jobs report: Fed speakers talk down recession odds & also an optimism that the Federal Reserve will be able to curb inflation without tipping the economy into a recession.* 

Investors also heard a pair of Fed officials speaking Thursday about why its plans to combat high inflation still can avoid triggering an economic recession.

*Commodities from oil to copper jumped as the dollar dropped for the first time in five days. The two- and 10-year Treasury yield curve remained inverted for a third day even as Fed Governor Christopher Waller dismissed recession fears on Thursday. Both Waller and fellow hawk James Bullard, president of the St. Louis Fed, backed raising rates by another 75 basis points this month.* 

US jobless claims rose last week, signaling that the strength in the labor market is moderating.

*Investors have been whipsawed in the past two weeks between concern over runaway inflation and the fear of a US recession. The Federal Reserve’s last meeting showed policy makers’ resolve to continue raising rates, a promise restated by St. Louis Fed President James Bullard on Thursday. But recent data has hinted at slower growth, calming investors over the pace of tightening needed.*

*U.S. stock markets have stabilized in July after a brutal selloff in the first half against the backdrop of a surge in inflation, the Ukraine conflict and the Fed's pivot away from easy-money policy.*

*The S&P 500 index has closed higher in each of the first four sessions so far this month, after recording its steepest first-half percentage drop since 1970. The benchmark has not had five successive gains so far in 2022.*

*There’s not necessarily much conviction in this move, but it is nice to see that, in the absence of new negative news, that markets are bouncing off of short-term oversold levels*

Even with the recent gains, the S&P 500 is still down about 19% from its all-time high in January.

“Bottoming is a process, so we’re working our way through that process,” said Jeff Buchbinder, equity strategist at LPL Financial. “We think, if the lows aren’t in, they’re close.”

On Wednesday, the Dow Jones Industrial Average rose 70 points, or 0.23%, to 31,038, the S&P 500 increased 14 points, or 0.36%, to 3,845, and the Nasdaq Composite gained 40 points, or 0.35%, to 11,362.

*Volume on U.S. exchanges was 10.47 billion shares, compared with the 13.08 billion average for the full session over the last 20 trading days.*

*What drove markets*

Stocks finished higher Thursday, putting them on pace for a string of weekly gains to kick off July.

“It’s a calm before the storm,” said a strategist, referring to the release Friday morning of the June jobs report.

“Inflation and employment prints are the most important right now,” he said by phone. “Anything significantly off from expectations is going to read as potentially signaling some sort of trend,” which could influence the Fed’s interest rate-hiking plans through year-end, he said.

*The tech-heavy Nasdaq led the market higher as investors also reacted to the fall in commodity prices over the past month, which has helped to cause a moderation in inflation expectations and a fall in bond yields from their recent peak. The shift has benefited growth stock valuations.*

*Even as crude oil prices snapped a 2-day skid on Thursday, they remained down nearly 20% over the past month, though energy stocks rallied on the day, reversing some recent losses. Chevron rose 2%, while Exxon gained 3.2%.*

“The number one bugaboo for the markets is inflation and increasingly we are seeing some signs that peak inflation may be in the rear mirror here,” David Dietze, managing principal and senior portfolio strategist for Peapack Private Wealth Management, told Bloomberg Radio. “Now are we where we want to be? Absolutely not. We’re not going to get to 2% anytime soon. The key thing I think from an investor’s point of view is the direction is changing.”

*Worries about a brutal recession may also be assuaged by latest credit and debit card data which shows that consumer spending has remained resilient despite inflation. And as investors shift their focus from inflation to growth risks, they’ve regained their faith in Treasuries as a portfolio hedge, Bank of America strategists said. An inverted yield curve, however, still signals fears of a recession.*

*The Goldilocks scenario is that the Fed slows the economy enough to reduce inflation from the current 8.6%, 40 year-high level without tipping us into recession. And so any data point that suggests that either inflation is coming down faster so that the Fed can take their foot off the brake quicker, or that recession looks less likely through coincident indicators, would give the market relief.*

Paul Nolte, a portfolio manager at Kingsview Asset Management, said economic growth fears that triggered the pullback in commodity prices also have inspired a shift in thinking about the Federal Reserve’s plans.

Investors increasingly are betting that the central bank won’t need to be as aggressive with its interest rate hikes.

“Markets right now are betting that the Fed is going to break and follow the economy, not necessarily inflation,” Nolte said.

*Instead, traders are hoping that the battering delivered to stocks this year means that there might be an opportunity for the market to be pleasantly surprised when the U.S. second quarter earnings reporting season enters full swing next week.*

Minutes from the central bank's June policy meeting, where the Fed raised interest rates by three-quarters of a percentage point, showed on Wednesday a firm restatement of its intent to get prices under control.

*However, Fed officials acknowledged the risk of rate increases having a "larger-than-anticipated" impact on economic growth and judged that an increase of 50 or 75 basis points would likely be appropriate at the policy meeting in July.*

*The less hawkish tone was echoed in comments from Fed Governor Christopher Waller on Thursday. In calling fears of a U.S. recession “overblown”, he advocated for a 50 basis-point hike in September.* 

*While awaiting Friday’s jobs report, investors heard from several Fed officials, including Fed Gov. Christopher Waller who said he backs a 75 basis point rate hike later this month, and likely another 50 basis point increase in September.* 

*A closely watched employment report on Friday is expected to show nonfarm payrolls likely increased by 268,000 jobs last month after rising by 390,000 in May.*

*St. Louis Federal Reserve President James Bullard said Thursday that he didn’t see a U.S. recession on the horizon, but that there’s a “good chance” of a soft economic landing.*

Such sentiment was taken as a cue by some to add positions, including in high-growth stocks, which had suffered in the first half of 2022 as investors fretted over their prospects in a rising interest rate environment.

*The Philadelphia SE Semiconductor index climbed 4.5% after South Korea's Samsung Electronics turned in its best second-quarter profit since 2018, driven by strong sales of memory chips.*

*This benefited tech names big and small, with heavyweights Tesla Inc up 5.5% and Google parent Alphabet Inc rising 3.7%, and Affirm Holdings Inc and Avalara Inc gaining, respectively, 17.1% and 16.4%.  Shares of AMD and Nvidia gained 5.2% and 4.8%, respectively. On Semiconductor jumped more than 9%.*

"It's starting to feel like real money is starting to come back," said Louis Ricci, head trader at Emles Advisors.

"There's no reason that the market cannot go down another 30%, but we think the risk is 30% to the downside but three to four times that to the upside."

The benchmark 10-year Treasury yield rose for a second day in a row, up 9.6 basis points to 3.007%.

Though investors widely expect the Fed to hike rates by another 75 basis points in July, expectations of peak terminal rate next year have come down significantly amid growing worries of a global economic slowdown.

*Fed funds futures traders are pricing for the benchmark rate to peak at 3.44% in March. Expectations before the June meeting were that it would increase to around 4% by May. It is currently 1.58%.*

*Elsewhere, a report on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week and demand for labor is slowing with layoffs surging to a 16-month high in June.* 

*Data released Thursday by the Labor Department showed the number of Americans filing new claims for jobless insurance increased by 4,000 last week, while the number of ongoing claims increased by 51,000.*

*The U.S. trade deficit for May came in slightly higher than expected at $85.5 billion but was still down month over month.*

*The U.S. saw its trade deficit narrow in May, data that Capital Economics says could help bolster growth in the second quarter. Lately, investors have increasingly feared that the U.S. economy might see slow growth, or perhaps even a contraction, during the second quarter.*

*The Labor Department’s monthly jobs report is due out on Friday, and the employment data could warrant extra scrutiny as investors try to gauge the health of the U.S. economy.*

*Economists surveyed by Dow Jones expect a gain of 250,000 jobs for June, which would be a slowdown from the 390,000 added in May.*

*Commodities were boosted on Thursday as China’s Ministry of Finance is said be considering allowing local governments to sell 1.5 trillion yuan ($220 billion) of special bonds this year. But the Bloomberg Commodity Spot Index is down about 21% from a June high.*

We’ve seen a big pull in commodities that’s sort of easing those inflation fears that have been driving the fear of recession and of more aggressive tightening.

*Single stock movers*

• Shares of Micron ended up 2.6%, while those of AMD rose 5.2% and Nvidia shares gained 4.8% after South Korea’s Samsung reported stronger than expected earnings guidance.

• Freeport-McMoRan, Schlumberger and Diamondback Energy , APA Corp. and Halliburton Co rose 6.7%. 5%, 5.5%, 7.8% and 5.2%, respectively, as oil prices rallied.

• ON Semiconductor Corp. rose 9.2% on the Samsung news.

• Elevator maker Otis Worldwide Corp. slumped 1.6% on Thursday after a JP Morgan analyst expressed concerns about the stock’s valuation.

• Another notable mover was *GameStop*, which popped 15% after the video game retailer said a 4-for-1 stock split was approved by its board. GameStop fell about 5% in after-hours trading when the company fired its chief financial officer and said it would lay off employees as part of a turnaround plan. 

*Other markets*

• Crude oil prices closed higher. West Texas Intermediate crude rose 4.3% to settle at $102.73 a barrel. The U.S. benchmark lost nearly $10 over the previous two sessions amid worries about easing global demand.

• The ICE Dollar Index fell less than 0.1%. On Wednesday, the dollar topped 107, its highest level in 19 years as worries about the European economy and political turmoil in the U.K. pressured the euro and sterling.

• Gold rose 0.2% to end at $1,739.70.

• Bitcoin advanced by 7.3% to $21,735, but was still down nearly 70% from its record high, as traders warily eye recent turmoil in the crypto sector.

• In Europe, the STOXX Europe 600 climbed 1.9%, while the FTSE 100 in London rose 1.1% after U.K media said Prime Minister Boris Johnson would resign. In Asia, the Shanghai Composite rose 0.3% and the Nikkei 225 index rose 1.4%.

*Sterling ticked higher as U.K. Prime Minister Boris Johnson resigned on Thursday, after more than 50 resignations from his government in light of a string of scandals.*

*The European Central Bank published the minutes of its last meeting on Thursday, which showed that policymakers discussed a larger interest rate hike for July than the 25 basis points it eventually earmarked.*

*On the data front, German industrial production rose by less than expected in May, expanding by 0.2% month-on-month against a consensus forecast of 0.3%, and was down 1.5% year-on-year.*

*What to watch this week:* 

# US employment report for June, Friday

*Currencies* 

# The Bloomberg Dollar Spot Index fell 0.2% 

# The euro fell 0.2% to $1.0158 

# The British pound rose 0.7% to $1.2015 

# The Japanese yen fell 0.1% to 136.09 per dollar 

*Bonds* 

#The yield on 10-year Treasuries advanced eight basis points to 3.00% 

# Germany’s 10-year yield advanced 11 basis points to 1.32% 

# Britain’s 10-year yield advanced four basis points to 2.13% 

*Commodities* 

#West Texas Intermediate crude rose 4.2% to $102.67 a barrel 

# Gold futures rose 0.2% to $1,739.40 an ounce.

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