Investors will keenly follow the Kashmir situation, corporate earnings, and global cues for market direction today.
The Rajya Sabha yesterday approved a resolution scrapping the special status to Jammu and Kashmir and passed another Bill approving the bifurcation of the state into two Union territories. The government’s move triggered panic among investors and they will continue to keep a tab on developments on that front.
Traders will continue to react to June quarter earnings, including the ones announced yesterday in post-market hours.
On Monday, the Sensex ended 1.13 per cent lower at 36,700 levels, and the Nifty50 slipped 1.23 per cent to settle at 10,863 mark amid weak domestic and global cues.
Globally, China, let the yuan slide in response to the latest US tariff, which may further aggravate trade tensions between the world’s two largest economies.
The rupee crashed by 113 paise -- the biggest single-day drop in past six years -- to close at a five-month low of 70.73.
The movement of rupee today will thus be on investors' radar. They will continue to track the progress in monsoon, foreign fund flow, and oil price.
Now, let's take a look at the global cues.
Wall Street slumped on Monday amid yuan devaluation. The Dow Jones fell 2.9 per cent to 25,718, and the S&P 500 lost 2.98 per cent to 2,844.74. Asian stocks followed suit. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.75 per cent while Japan's Nikkei shed 2.7 per cent. Australian stocks fell 2.6 per cent and South Korea's KOSPI slid 1.5 per cent.
At 07:46 am, Nifty futures on the Singapore Exchange (SGX) were trading 86.50 points or 0.80 per cent lower at 10,783 levels, indicating a negative start for the Indian market today.
In the results corner today, as many as 106 companies, including the likes of Titan, REC, Pidilite, and Indiabulls Housing are scheduled to announce their June quarter earnings today.
And now, news from the primary market. Sterling and Wilson Solar (SWSL), the solar engineering, procurement and construction (EPC) solutions provider, is set to launch its initial public offering (IPO) on Tuesday (August 6). The price band of the offer has been fixed between Rs 775 - 780 apiece. At the higher end of the price band, the company aims to raise around Rs 3,125 crore.
In another news, the initial public offering (IPO) of microfinance lender Spandana Sphoorty Financial, which opened for subscription on Monday, was subscribed 6 per cent on the first day of bidding.
Now, let's take a look at the top headlines of the day -
>> Retail investors forfeit Rs 1.33 trillion since Budget; m-cap falls 10%
>> RBI may cut rate, but commentary will be cautious
>> Oil prices fall 2% as US-China trade war concerns hit demand outlook
>> Sector-specific steps to tackle economic slowdown, says FM Nirmala Sitharaman.