Market Pulse: Key Triggers to Watch Ahead of the August 20 Trading Session

Indian equity investors will look for positive trading cues on Thursday, August 20, after US stocks opened higher as Treasury yields eased following the US Treasury Department's announcement of an increase in its buyback operation for longer-term debt.

US Markets

US stocks opened higher on Wednesday, with the Dow Jones Industrial Average gaining 306 points, or 0.6%, as Treasury yields eased after the Treasury Department announced an increase in its buyback operation for longer-term debt. The S&P 500 rose 0.5%, while the Nasdaq Composite advanced 0.2%. The Treasury began regular buyback operations in 2024 with the stated aim of supporting liquidity and smooth market functioning in the world's largest government bond market, and Treasury yields serve as a benchmark for global borrowing costs, which is why they are closely tracked by equity investors worldwide.

Crude Oil

Oil prices remained near three-week highs on Wednesday, supported by uncertainty around shipments through the Strait of Hormuz and continued supply disruptions. Brent crude futures rose 18 cents, or 0.2%, to $91.20 a barrel by 1302 GMT, while US West Texas Intermediate crude gained 16 cents, or 0.19%, to $85.10. Brent and WTI had earlier touched their highest levels since July 30 and July 31, respectively, before paring gains. The Strait of Hormuz, the shipping lane linking the Persian Gulf with the Gulf of Oman, carries roughly a fifth of globally traded oil, making it a key chokepoint for supply. India, which imports more than 80% of its crude oil requirement, is among the economies most exposed to shifts in this trade, which is why oil price trends are closely tracked by domestic market participants.

US Weekly Jobless Claims

The US is set to release its weekly jobless claims and Philadelphia Fed Manufacturing Index data at 6:00 PM IST on Thursday. Last week, weekly jobless claims stood at 213,000. Weekly claims are among the most timely barometers of the US labour market, while the Philadelphia Fed Manufacturing Index is a monthly, survey-based gauge of factory activity in the mid-Atlantic region; both are tracked for signals on the health of the world's largest economy.

Core Sector Growth

India is set to release July 2026 infrastructure/core sector growth data at 4:00 PM IST on Thursday. In June 2026, the Index of Core Industries (ICI) grew 5% year-on-year, up from 3.2% in May 2026 under the revised 2022-23 base-year series. The ICI tracks output across eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — which together carry roughly 40% of the weight of the Index of Industrial Production (IIP), making the release an early read on industrial activity ahead of the fuller IIP data.

Earnings

Global earnings due on Thursday include APA, Medibank and Northern Star Resources in Australia; Ping An, AIA, Seres, Heng Rui Pharma, NetEase, Pop Mart, Li Ning and Chery Auto in Hong Kong; and Novonesis and Aegon Ltd in Europe. In the US, Walmart is scheduled to report at 4:30 PM IST, followed by Deere & Company. Walmart, the world's largest retailer by revenue, is widely watched as a bellwether of US consumer spending, while Deere & Company is a leading maker of agricultural equipment.

Railway Stocks

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved four railway multitracking projects with a total estimated cost of ₹9,450 crore. The projects, spread across West Bengal, Odisha, Tamil Nadu and Andhra Pradesh, are expected to add around 410 km to the existing Indian Railways network and are scheduled for completion by 2030-31. Multitracking adds parallel tracks on existing corridors to raise line capacity and reduce congestion on busy routes — the stated objective of the series of such CCEA-approved railway projects.