The benchmark Sensex and the Nifty are likely to open marginally lower on September 11 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 10 points.
The Sensex jumped 333 points to 66,599, while the Nifty surged 93 points to 19,819 in the last session to form a bullish candlestick pattern on the daily charts, forming higher highs and higher lows for the sixth straight day.
"The market has begun surpassing one after another hurdles and is expected to move past the current resistance of 19,865 levels," Nagaraj Shetti, technical research analyst at HDFC Securities, said. The short-term trend continues to be positive, with immediate support at 19,650, he said.
The pivot point calculator indicates that the Nifty may be taking support at 19,751, followed by 19,718 and 19,665. On the higher side, 19,858 can act as the key resistance, followed by 19,891 and 19,945.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 10 points. GIFT Nifty futures stood at 19,927 points after making a high of 19,937 points.
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US Markets
Stocks gained slightly on Friday but logged in a losing week amid renewed worries that the Federal Reserve may raise the policy rates more than expected earlier. The S&P 500 edged up 0.14 percent to snap a three-day losing streak and finish at 4,457.49. The Dow Jones Industrial Average added 75.86 points, or 0.22 percent, to close at 34,576.59, while the Nasdaq Composite eked out a 0.09 percent gain to settle at 13,761.53.
Major averages also capped off a losing week. The S&P and Nasdaq dropped 1.3 percent and 1.9 percent for their first negative week in three. The Dow finished about 0.8 percent lower.
European Markets
European markets closed slightly higher Friday, following US stocks with tentative gains amid uncertainty over the inflationary outlook. The basic resources sector fell 0.4 percent as media stocks rose 1.1 percent. The pan-European Stoxx 600 index closed 0.22 percent higher, breaking a seven-session losing streak, its longest since February 2018. The index has lost 1 percent this week, according to LSEG data.
Global market sentiment has slipped in recent days as investors assess weak Chinese data, higher government bond yields and renewed inflationary concerns in the US. The US consumer price index for August will be released on September 13, while investors are also monitoring the oil and gas prices, which have both climbed this week on Saudi Arabian supply cuts and strike action in Australia.
The Euro Zone released final figures on Thursday, indicating that the economy grew by 0.1 percent in the second quarter compared to the previous period. This was lower than the 0.3 percent growth estimated in a preliminary reading.
Asian Markets
Most Asia-Pacific markets were mostly lower at the start of a week where key economic data from major economies will take center stage. On Tuesday, India will release its inflation and industrial output figures for August, while China will announce its industrial output, retail sales, and most notably, house sale prices on Friday.
In Australia, the S&P/ASX 200 fell 0.2 percent, while Japan’s Nikkei 225 was near the flatline while the Topix climbed 0.28 percent. South Korea’s Kospi slid 0.27 percent in early morning trade, while the Kosdaq was down 0.28 percent.
Futures for Hong Kong’s Hang Seng index stood at 18,156, pointing to a weaker open compared to the HSI’s close of 18,202.07 on Thursday. Hong Kong cancelled trade on Friday, due to the city seeing its heaviest rainstorm in 140 years.
G20 Summit: RBI to launch wholesale CBDC for call market by October
The Reserve Bank of India (RBI) will introduce the wholesale version of its central bank digital currency (CBDC), the digital rupee-wholesale, in the call money market by October, senior central bank officials said on September 10.
"(It will be) very soon. Interbank borrowing in wholesale CBDC we are going to start this month itself. Either this month or next month. We are testing it. Once we are ready we will be able to start," Ajay Kumar Choudhary, an executive director at the RBI, said on the sidelines of the G20 Leaders' Summit in New Delhi. The RBI launched the pilot for its wholesale CBDC in November 2022 with a focus on the settlement of secondary market transactions in government securities.
Busy week ahead for markets with 6 IPOs, 5 listings ready to hit the Street
The momentum in the primary market is likely to gather steam this week with six companies geared up to raise more than Rs 4,000 crore from public, and five listings queued up for debut.
Wire and cable products company RR Kabel will be the first initial public issue in the mainboard segment, opening on September 13, with a price band of Rs 983-1,035 per share. The company intends to raise Rs 1,964.01 crore from the offer, which comprises fresh issues worth Rs 180 crore and an offer-for-sale (OFS) of 1.72 crore equity shares amounting to Rs 1,784.01 crore by six selling shareholders, including promoter Mahendrakumar Rameshwarlal Kabra, and private equity firm TPG Asia VII SF Pte Ltd (the largest public shareholder in the company). Bidding will close on September 15, while the anchor book will open for a day on September 12.
Ratnaveer Precision may list at 40% premium over issue price. Should you book profits?
Ratnaveer Precision makes its market debut today i.e., September 11 after the listing was brought forward from September 14. Experts expect the stock to list with at least a 40 percent premium over the issue price of Rs 98 per share.
Ratnaveer Precision shares were trading in the grey market at a premium of 50 percent, said analysts on the condition of anonymity. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing day.
“Considering robust demand by investors in all categories, we expect listing would be in the range of 40-50 percent gain,” said Prashant Tapse, senior VP-Research, at Mehta Equities.
The premium is justified on the back of the company’s niche SS cold-rolled products, which are widely used globally, a high-margin portfolio and investor-friendly IPO pricing, which leaves room for strong listing gains, he added.
G20 Summit: US realised India's vital role in fight against China's hegemony, says Mohandas Pai
Chairperson of Manipal Global Education Mohandas Pai remarked that the United States has realised that India's role is vital in the fight against Chinese hegemony owing to India's economic growth, population and digital advancements among others.
"India is a leader in the digital world, we are in the midst of a digital revolution. India is one of the three great digital powers of the world," said the former chief finance officer of Infosys. He further noted that that democracy at a global level cannot flourish without India and one has to accept that India is a leader of the decolonised world.
Pai made this statement while speaking exclusively with Moneycontrol about India and the US speaking in one voice at the G20 summit. He further hailed US president Joe Biden for understanding India's potential at the global level.
Oil Prices
Oil prices gained almost 1 percent to a nine-month high on Friday on rising U.S. diesel futures and worries about tight oil supplies after Saudi Arabia and Russia extended supply cuts this week. Brent futures rose 73 cents, or 0.8 percent, to settle at $90.65 a barrel, while US West Texas Intermediate (WTI) crude gained 64 cents, or 0.7 percent, to settle at $87.51.
Both crude benchmarks remained in technically overbought territory for a sixth straight day, with Brent on track for its highest close since November 16. WTI’s close was its highest since Sept. 6, when it settled at its highest since November. For the week, both benchmarks were up about 2 percent, following gains last week of about 5 percent for Brent and about 7 percent for WTI.
“Crude prices continue to trade on supply-side drivers. No one is doubting that OPEC+ will keep this market tight going into the winter,” Edward Moya, senior market analyst at data and analytics firm OANDA, said in a note.
Dollar Index
The Dollar index traded 0.06 percent lower in futures at 105.06, whereas the value of one dollar hovered near Rs 83.12.
Gold Prices
Gold ticked up on Friday buoyed by a slight retreat in the dollar, while investors hunkered down for more economic data next week to gauge the Federal Reserve’s interest rate hike plans. Spot gold inched 0.1% higher at $1,920.49 per ounce by 2:06 p.m. EDT (1806 GMT). U.S. gold futures settled little changed at $1,942.70.
The dollar, however, is bound for its longest weekly winning streak since 2014, propelled by recent strong US economic data. The greenback’s overall strength put bullion on course for its first weekly dip in three. Focus is now on US inflation readings due on September 13, and the Fed’s policy decision on September 20.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 224.22 crore, while domestic institutional investors (DII) bought Rs 1,150.15 crore worth of stocks on September 8, provisional data from the National Stock Exchange (NSE) showed.
With inputs from Reuters and other agencies.
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