Stock Market Today: Top 10 things to know before the market opens on 1st September
The benchmark Sensex and Nifty indices are likely to open marginally lower on September 1 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 20 points.
The BSE Sensex dropped 256 points to 64,831, while the Nifty50 declined 94 points to 19,254 and formed bearish candlestick pattern on the daily scale. The index has broken 50-day EMA (exponential moving average placed at 19,289).
Technically, the candlestick pattern indicates that the market is now placed at the edge of downside breakout of the support around 19,250-19,200 levels,” Nagaraj Shetti, technical research analyst at HDFC Securities said.
The pivot point calculator indicates that the Nifty may get support at 19,226, followed by 19,226 and 19,124. In case of an upside, 19,351 can be the key resistance, followed by 19,390 and 19,453.
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
IFT Nifty
The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 20 points.
GIFT Nifty futures stood at 19,409 points after making a high of 19,410 points.
US Markets
Stock futures were near the flat line Thursday night as investors came off a mixed trading session and closed out a month that saw losses for all three stock indexes. Futures tied to the Dow Jones Industrial Average added 22 points, or 0.06%.
S&P 500 futures hovered just above flat, while Nasdaq 100 futures inched down by 0.04%.
Database software maker MongoDB and Dell Technologies advanced 4% and 7%, respectively, in extended trading on the back of stronger-than-expected earnings reports.
Shares of athletic apparel retailer Lululemon Athletica added 1% after crushing Wall Street’s estimates.
The moves follow a tumultuous month for stocks.
Despite a recent string of positive sessions that helped stock indexes trim their monthly losses, the S&P 500 lost 1.77%, while the Nasdaq shed 2.17%.
The 30-stock Dow dropped 2.36% in August.
European Markets
European stock markets closed slightly lower Thursday after the release of preliminary euro zone inflation data, and as UBS posted its first set of results since the bank completed its takeover of Credit Suisse.
The pan-European Stoxx 600 slipped to a 0.1% loss at the end of a largely positive session, taking declines for the month to 2.64%, according to Eikon data.
UBS posted a second-quarter profit of $28.88 billion, well exceeding projections of $12.8 billion made by analysts polled by Reuters. Shares were up 6% by the end of the session, though the European banking sector closed 1% lower.
Euro zone inflation came in higher than expected for August, according to preliminary data, remaining unchanged from July at 5.3%.
On Wednesday, Spain reported flash inflation up 2.6% year on year for August, in line with analyst expectations, while Germany reported a 13.2% drop in imports for the year to July, the sharpest drop since January 1987.
Asian Markets
Asia-Pacific markets were mixed Thursday as China’s factory activity contracted for a fifth straight month in August.
In India, Adani stocks fell amid fresh allegations of trade manipulation.
Adani Green Energy led losses, falling about 3.6% while Adani Enterprises fell 2.1%.
The official manufacturing purchasing managers index came in at 49.7, representing a softer rate of contraction compared with the 49.4 expected by economists polled by Reuters and July’s figure of 49.3.
Hong Kong’s Hang Seng index slid 0.55% in its final hour of trade, paring earlier gains.
Mainland Chinese stocks were also in negative territory, with the CSI 300 index down 0.61% and closing at 3,765.27.
Japan’s Nikkei 225 advanced 0.88% and notched a four-day winning streak, closing at 32,619.34 and the Topix was up 0.8% to end at 2,332.
The country saw its retail sales jump more than expected in July, climbing 6.8% year on year, compared with the 5.4% rise expected by a Reuters poll.
The Australian S&P/ASX 200 extended gains, rising 0.1% and marking four straight days of gains this week.
However, South Korea’s Kospi fell 0.19% to 2,556.27 as industrial production slid 8% year-on-year in July, marking its 10th straight month of contraction.
The Kosdaq was 0.5% higher and finished at 928.4.
Shares of most of the Adani group company ended lower on Thursday after a report from investigative reporting platform OCCRP alleged hundreds of millions of dollars were invested in publicly traded group stocks through Mauritius-based ‘opaque’ investment funds managed by partners of promoter family of billionaire Gautam Adani.
However, the conglomerate denied the charges vehemently.
Nine of the group firms settled in the negative territory while one ended in the green on Thursday.
The stock of Adani Green Energy nosedived 4.39 per cent to settle at Rs 928.05 apiece, while shares of flagship firm Adani Enterprises plunged 3.77 per cent to close at Rs 2,418.80 and Ambuja Cements tanked 3.53 per cent to end at Rs 428.50 per piece on the BSE.
Shares of Adani Energy Solutions dipped 3.52 per cent to close at Rs 812.15, Adani Ports and Special Economic Zone (APSEZ) slipped 3.37 per cent to settle at Rs 791.40, Adani Total Gas declined 2.59 per cent to end at Rs 635.60 on the bourse. In addition, scrip of Adani Wilmar fell 2.56 per cent to close at Rs 359.50, Adani Power at Rs 321.05 and NDTV at Rs 214.60.
Besides, stock of ACC gained 0.47 per cent to end at Rs 2,009.55 per piece on the BSE. Meanwhile, the 30-share BSE Sensex settled 255.84 points or 0.39 per cent lower at 64,831.41 points on Thursday.
India’s fiscal deficit rises to Rs 6.06 lakh crore in April-July, 34% of FY24 target
The Indian government’s fiscal deficit widened to Rs 6.06 lakh crore in April-July from Rs 4.51 lakh crore in April-June, data released by the Controller General of Accounts on August 31 showed.
At Rs 6.06 lakh crore, the fiscal deficit for the first four months of the current financial year accounts for 33.9 percent of the full-year target of Rs 17.87 lakh crore.
The fiscal deficit for April-July 2022 was 20.5 percent of the target for 2022-23.
In July, the Centre’s finances weakened after it posted a monthly fiscal deficit of Rs 1.54 lakh crore. In contrast, in the same month last year, the government recorded a fiscal surplus of Rs 11,040 crore.
The reversal of fortunes meant the fiscal deficit for April-July 2023 was a massive 77.7 percent higher compared to the first four months of 2022-23.
India’s April-June GDP growth at 7.8%, highest in four quarters
India’s Gross Domestic Product (GDP) growth rate hit a four-quarter high in April-June, rising to 7.8 percent, the Ministry of Statistics and Programme Implementation said on August 31.
At 7.8 percent, the latest quarterly growth number is slightly above expectations. A poll conducted by Moneycontrol had shown economists expected GDP growth for the first quarter of 2023-24 to come in at 7.7 percent.
Meanwhile, the Reserve Bank of India (RBI) had forecast a growth rate of 8 percent.
The Indian economy had expanded by 6.1 percent in January-March and 13.1 percent in April-June 2022.
Jio Financial Services to be removed from BSE Indices from September 1
Jio Financial Services (JFS), the demerged financial business of Reliance Industries, will be removed from the BSE Indices, including the benchmark 30-pack Sensex, on September 1, the Bombay Stock Exchange said on August 31.
“…effective prior to the open of trading on Friday, September 01, 2023, Jio Financial Services Ltd will be removed from all the S&P BSE Indices following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries,” the BSE notice said.
Initially scheduled for removal by August 23, the stock’s exclusion plan was delayed by exchanges as it continued to be locked in the lower circuit.
On August 31, the stock marked its third consecutive session of gains and closed at an upper circuit of 5 percent, reaching Rs 242.50 a share on BSE.
No concern about inflation spiralling out of control, says CEA Nageswaran
There is “no real cause for concern” about inflation spiralling out of control, Chief Economic Adviser V Anantha Nageswaran said on August 31.
Speaking to reporters after the release of GDP data for April-June, Nageswaran said the Union government as well as the Reserve Bank of India (RBI) were keeping an eye on price developments in light of the deficient rainfall in August.
“Core inflation rate is declining. Food inflation was dominated by specific commodities. So, overall, I think there is no real cause for concern that inflation would spike out of control,” Nageswaran said.
Five Star Business Finance: PE investors may sell up to 8.8% via block deals
Private equity investors are likely to sell up to 8.8 percent stake in Five Star Business Finance via block deals, CNBC-TV18 reported on August 31 citing sources. Sources have said that Matrix Partners, TPG Asia, and Norwest Ventures may also sell stake in the NBFC.
The floor price for the Five Star Business Finance block deals will likely be at Rs 724 per share, which is at 6.25 percent discount to current market price.
The total size of Five Star Business Finance, including base size, would be up to Rs 1,860 crore, according to the report.
Oil Prices
Oil prices retreated from highs hit earlier on Thursday as data showed rises in production in OPEC+ countries despite a planned production cut of 1 million barrels per day (bpd).
Brent crude futures rose 82 cents to $86.69 a barrel, up 0.97%. U.S. West Texas Intermediate crude futures was up $1.04, or 1.27%, at $82.67 a barrel.
Markets seemed to look at higher-than-expected OPEC+ production as trading moved to the middle of the day, said Phil Flynn, an analyst at Price Futures Group. “I think it took some of the wind out of their sails,” Flynn said.
Earlier on Thursday, Flynn said, the markets were reacting to U.S. government data on Wednesday that showed the country’s crude inventories fell by a larger-than-expected 10.6 million barrels last week, depleted by high exports and refinery runs.
Meanwhile, analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million bpd into October, adding to cuts put in place by the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a grouping known as OPEC+.
Dollar Index
The Dollar index traded 0.40 percent higher in futures at 103.57, whereas the value of one dollar hovered near Rs 82.65.
Gold Prices
Gold steadied on Thursday, hovering near its one-month peak, after as-expected U.S. inflation and weaker jobs numbers reinforced expectations that the Federal Reserve will keep interest rates on hold this year.
Spot gold was flat at $1,941.49 per ounce, close to its highest since Aug. 2, at $1,948.79, hit on Wednesday. U.S. gold futures dipped 0.2% to $1,968.1 per ounce.
Inflation as measured by the personal consumption expenditures (PCE) price index rose 0.2% last month, matching June’s gain. In the 12 months through July, the PCE price index increased 3.3%, after advancing 3.0% in June.
U.S. consumer spending, which accounts for more than two-thirds of the country’s economic activity, accelerated in July. Weekly initial jobless claims fell 4,000 to 228,000.
That compares with a four-week average of 237,500.
Bob Haberkorn, senior market strategist at RJO Futures said that while the numbers were “not terrible”, they were “not great” either and may mean that the U.S. Federal Reserve would be in a position to halt interest rate rises early next year.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 2,973.10 crore, while domestic institutional investors (DII) purchased Rs 4,382.76 crore worth of stocks on August 31, provisional data from the National Stock Exchange (NSE) showed.
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