SENSEX and NIFTY50 open lower, dragged down by Reliance Industries ahead of earnings

Today, Indian equity benchmark indices began the last trading session of the week on a negative note, with the NIFTY50 and SENSEX trading in the red. Similarly, the Nifty Midcap 100 and Smallcap 100 index also traded negatively in the broader markets. Additionally, Nifty IT was the top gainer, while Nifty Metal was the top loser in the early trading session. The India VIX is trading flat but above the 14.4 mark.

Nifty started the day on a cautious note, opening below the dotted lines after Wall Street experienced a significant drop in overnight trading. The tech-heavy Nasdaq fell for the second consecutive day.

Currently, the biggest risk to global stock markets has shifted from inflation to excessive optimism in the Indian markets and rising geo-political risks.

Donald Trump, now the frontrunner for November's election, has made headlines by stating that Taiwan should pay the U.S. for protection. He also accused Taiwan of stealing America's semiconductor business.

On Thursday, July 18, 2024, foreign institutional investors (FII) bought shares worth ₹5,483.63 crore, while domestic institutional investors (DII) offloaded shares worth ₹2,904.25 crore.

At 09:25 am, the SENSEX was trading lower by 0.17% below the 81,300 level, while the NIFTY50 was also down by 0.27%, trading below the 24,800 level. Furthermore, Nifty Bank plunged by 0.52%, trading below the 52,300 mark.

Broader indices

Looking at the broader indices, the Nifty Midcap 100 index was trading substantially lower by 1.02% below the 56,600 level, while the Nifty Smallcap 100 also plummeted by 0.88% and is trading below the 19,700 mark.

Sectoral Performance

Within the sectoral landscape, Nifty IT (+0.33%), and Nifty FMCG (+0.8%) are the only major sectors that are trading positively, while Nifty Realty (-1.1%), Nifty Metal (-1.12%) and Nifty Energy (-1.01%) are the sectors trading negatively.

Top Gainers and Losers

U.S. Markets

On July 18, U.S. stocks tumbled, reversing early gains as investors rotated away from high-priced mega-cap growth stocks amid the second-quarter earnings season. All three major U.S. stock indexes experienced losses, with the blue-chip Dow suffering the most, breaking a streak of consecutive record-closing highs.

The U.S. 10-year Treasury yields rose by 28 basis points to 4.19%, while the U.S. 2-year bond yield remained flat at 4.47%.

Commodities

Oil prices declined on Friday, heading for a second consecutive weekly drop, as mixed economic signals dampened investor sentiment and strengthened the dollar.

Brent crude fell by 51 cents, or 0.6%, to $84.50 a barrel. Meanwhile, the U.S. West Texas Intermediate crude futures dropped 72 cents, or 0.9%, to $82.10 a barrel.

Stocks in F&O Ban

Stocks that are banned for trading in the F&O segment on July 19, 2024, are Balrampur Chini Mills, Bandhan Bank, GMR Airports Infrastructure, Gujarat Narmada Valley Fertilizers & Chemicals, Hindustan Aeronautics, Hindustan Copper, Piramal Enterprises, RBL Bank, Steel Authority of India and Vedanta.