Fading hopes of a government stimulus, rupee movement against the US dollar, and global cues are likely to dominate investor sentiment today.
Most investors were expecting the government to increase spending to shore up economic growth, however, comments by some government officials have dashed hopes of a big-bang stimulus. Yesterday, Chief Economic Advisor Krishnamurthy Subramanian said one could not expect the government to use taxpayers’ money to intervene every time some sectors go through “sunsets”. Commerce and Industry Minister Piyush Goyal said while fiscal stimulus was a good idea, the government would be criticised for leaving fiscal prudence.
NITI Aayog Vice-Chairman Rajiv Kumar has described the current stress in the financial sector as “unprecedented”, saying that it made a case for "extraordinary steps" to deal with the crisis.
That apart, market participants will also track oil price movement, foreign fund flow, and stock-specific action for market direction.
Meanwhile, the International Monetary Fund (IMF) has raised doubts about India's tax revenue estimates and GDP growth target and has asked India to explain how it is confident of meeting its revenue estimates for the year, given the current state of economic growth and historical buoyancy.
In the currency market, the rupee on Thursday plunged to its lowest level in 2019, closing at 71.81 against the dollar, 26 paise below its previous close.
The benchmark S&P BSE Sensex dropped nearly 600 points to end at 36,473, while the Nifty ended at 10,741, down 177 points.
And, now let's take a look at stocks that are likely to trade actively in today's session.
Shares of Future Group companies may hog the limelight today after the company said American e-commerce giant Amazon.com is acquiring a 49 per cent stake in a group entity — Future Coupons Ltd.
That apart, YES Bank may also be in focus today as news reports suggest it is looking for $1.9 bn of equity infusion.
And, now let's take a look at the global markets.
US equities ended little changed on Thursday. The Dow Jones rose 0.19 per cent, the S&P 500 0.05 per cent, and the Nasdaq Composite dropped 0.36 per cent. Stocks in Asia opened mixed on Friday. Shares in Japan and Australia were flat, while equities in South Korea dipped.
At 07:52 am, Nifty futures on the Singapore Exchange (SGX) were trading 6 points or 0.06 per cent lower at 10,713, indicating a flat start for the Indian market today.
And, before we wrap up, here's a quick look at the top headlines for the day -
>> CBI court sends P Chidambaram to custody till August 26 in INX media case
>> Sebi's move to ease norms for FPIs likely to attract West Asian banks;
>> Falling share prices may hit govt's PSU divestment plan; and
>> HSBC lays off 150 employees from India back offices for 'realignment'.