Investors will look at US Fed rate cut, corporate results, and macroeconomic data for market direction today. They will also react to major results announced yesterday, including by DLF and Allahabad Bank among others.
The biggest factor though will be the US Federal Reserve lowering interest rates for the first time in more than a decade by 25 basis point to a range of 2 per cent to 2.25 per cent. Although, Fed Chair Jerome Powell later poured cold water on expectations of a lengthy easing cycle by saying the easing was "not the beginning of a long series of rate cuts".
You can read special stories on the US Fed's rate cut that cover the highlights, reasons for the rate cut and much more on our website.
Investors will also keep a tab on the Markit PMI manufacturing data for India, US, and UK to be released later in the day.
A total of 53 companies, including Bharti Airtel, Godrej Consumer Products, and Marico are scheduled to declare their June quarter results today.
Analysts expect a marginal growth in Bharti Airtel's Q1 revenue and average revenue per user (ARPU) on a sequential basis. You can read the full preview of Bharti Airtel's result on our website.
Auto stocks may also be in focus today after the government agreed to first target highly-polluted urban cities in its plan for the transition to electric vehicles (EVs).
Now, let's see how the global markets fared overnight and they mean for Sensex and Nifty.
Powell's comments post the rate cut sent US equity markets into a tailspin. Overnight, the Dow and the Nasdaq lost 1.2 per cent each while the S&P 500 declined 1.1 per cent. Asian shares fell to six-week lows on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan slid 0.4 per cent and Japan's Nikkei also fell 0.4 per cent. South Korea's KOSPI slipped 0.5 per cent while Australian shares declined 0.3 per cent.
As for SGX Nifty, it's indicating a positive start for the negative indices.
In the end, we have some stock calls for you:
Tradebulls Securities recommends buying Havells at the current market price of Rs 645 for the target of Rs 667 and Rs 710.
CapitalVia Global Research recommends buying HCL Techology above Rs 1,035 for a target of Rs 1079.90. Stop loss should be placed at Rs 999.70