Stock Market Today: Top 10 things to know before the market opens on 12th September
The benchmark Sensex and Nifty indices are likely to open marginally higher on September 12 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 6 points.
The BSE Sensex rallied 528 points to 67,127, while the Nifty50 climbed 176 points to end at a record closing high of 19,996, continuing the uptrend as well as higher highs formation for the seventh consecutive session.
The index has formed a bullish candlestick pattern on the daily charts, after the breakout of the horizontal resistance trendline.
This impressive rally followed a breakout from a descending channel that occurred last week.
Looking ahead, the market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level,” Rupak De, senior technical analyst at LKP Securities, said.
The pivot point calculator indicates that the Nifty may be taking support at 19,902, followed by 19,868 and 19,814.
On the higher side, 20,011 can act as the key resistance followed by 20,045 and 20,100.
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 positive start for the broader index with a gain of 6 points.
GIFT Nifty futures stood at 20,116 points after making a high of 20,121 points.
US Markets
Stock futures ticked down Monday night as investors come off a positive day.
Futures tied to the Dow Jones Industrial Average lost 30 points, dropping nearly 0.1 percent.
S&P 500 and Nasdaq 100 futures both inched down 0.1 percent.
Oracle slid 9 percent in extended trading after missing revenue expectations of analysts surveyed by LSEG, formerly known as Refinitiv.
But the database software company beat Wall Street’s consensus estimate for earnings.
The moves following a winning day on Wall Street.
The Nasdaq Composite led the three indexes with a gain of 1.1 percent, while the S&P 500 and Dow added about 0.7 percent and 0.3 percent, respectively.
It was the second positive session for the S&P 500 and Nasdaq, and the third for the Dow.
European Markets
European stock markets closed higher on Monday as investors looked ahead to a busy week of economic data releases around the world.
The benchmark Stoxx 600 index ended up 0.3 percent, pulling back from gains of up to 0.9 percent earlier in the session.
Basic resources rose 2.4 percent, as stocks including Anglo American and Rio Tinto traded higher following gains in metals prices and encouraging Chinese inflation figures.
The Stoxx 600 on Friday broke a seven-session losing streak, its longest since February 2018.
Investors are looking forward to key US inflation data in the week ahead, with the latest consumer price index due Wednesday and producer price index Thursday.
The readings come after a string of stronger-than-expected economic data points last week renewed worries that the US Federal Reserve could raise rates more than previously expected.
Traders are pricing in a roughly 4-in-10 chance of an increase in November after an anticipated pause in September, according to CME Group’s FedWatch tool.
Asian Markets
Asia-Pacific markets rose across the board Tuesday, after Wall Street saw a tech rally led by Tesla and Qualcomm.
Tesla shares jumped 10 percent after Morgan Stanley upgraded the stock and predicted a significant rally ahead because of breakthroughs with its autonomous software.
Qualcomm shares rose nearly 4 percent after the semiconductor company said it will supply Apple with 5G modems for smartphones through 2026.
Investor sentiment was also helped by a report in The Wall Street Journal on Sunday saying there was consensus among the Federal Reserve not to raise rates at next week’s meeting.
In Australia, the S&P/ASX 200 climbed 0.14 percent, ahead of the country’s business confidence survey for August. Japan’s Nikkei 225 opened 0.73 percent up, while the Topix also rose 0.72 percent.
South Korea’s Kospi gained 0.21 percent, and the Kosdaq was 0.59 percent higher.
In contrast, futures for Hong Kong’s Hang Seng index stood at 18,064, pointing to a weaker open compared with the HSI’s close of 18,096.45.
KKR to make fresh investment of Rs 2,069.50 crore in Reliance Retail, hike stake to 1.42%
Reliance Retail Ventures Limited (RRVL), a subsidiary of oil-to-telecom conglomerate Reliance Industries, announced on September 11 that global investment firm KKR, through an affiliate, will invest Rs 2,069.50 crore in the company.
This investment values RRVL at a pre-money equity value of Rs 8.361 lakh crore, which makes it among the top four companies by equity value in the country now.
As per the statement, KKR’s follow-on investment will translate into an additional equity stake of 0.25 percent in RRVL on a fully diluted basis.
This, combined with its stake from its investment of Rs 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42 percent on a fully-diluted basis.
The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.
KKR’s investment comes primarily from its Asian Fund IV.
The transaction is subject to regulatory and other customary approvals, Reliance Retail noted.
L&T final buyback price increased to Rs 3200 per equity share
Larsen & Toubro announced on September 11 that the company has increased the buyback price from Rs 3,000 per equity share to Rs 3,200 per equity share.
The company’s buyback committee, at its meeting held on September 11, approved the increase in the buyback price by Rs 200 per equity share and the reduction in the maximum number of equity shares proposed to be bought back by it to 3.12 crore (3,12,50,000, precisely) from 3.33 crore, representing 2.22 percent of the total paid-up equity shares of Larsen & Toubro.
The board of directors of the company, at its meeting held on July 25, 2023, approved the buyback of up to 3,33,33,333 (3.33 crore) equity shares, each having a face value of Rs 2 of the company, representing up to 2.37 percent of the total fully paid-up equity shares at a maximum price of up to Rs 3,000, payable in cash.
The number of equity shares proposed to be purchased under the buyback, i.e., 3.12 crore, does not exceed 25 percent of the total number of equity shares in the paid-up equity share capital as of March 31, 2023.
Nifty @ 20k: 49 out of 50 stocks participated in the rally from March
After flirting with 20,000 level once in July, the Nifty 50 finally managed to scale past the psychological mark on September 11.
The benchmark Nifty 50 hit a record high of 20,008.15 with large caps finally joining the broader markets party.
The upward momentum in markets started after March 2023, with the dawn of the new financial year.
After falling to a low of 16,950-level, the Nifty 50 began its up move, gaining close to 18 percent since then.
Of the 50 stocks, 49 have participated in this rally with Adani Enterprises, Tata Motors, Adani Ports, NTPC and Cipla taking the top five spots. Along with Mahindra & Mahindra, these six stocks have gained over 40 percent in the rally since March.
JSW Infra to launch Rs 2,800 crore IPO by September-end: Sources
In what could be the first public issue by the JSW Group in 13 years, JSW Infra may launch its Rs 2,800-2,850 crore initial public offering (IPO) by the end of the month, various sources told Moneycontrol.
The IPO will entirely consist of a fresh issue of equity shares.
The country’s second-largest commercial port operator plans to utilise the proceeds of this issue to pay down the debt of its wholly-owned subsidiaries, JSW Dharamtar Port and Jaigarh Port, as well as to finance the capital expenditure of two other subsidiaries, JSW Jaigarh Port and JSW Mangalore Container Terminal, among other things, according to sources.
The company, however, declined to comment on the development.
Nifty at 20k: A part of a long journey and not a destination, says Vijay Kedia
The 20,000-mark that Nifty50 crossed is merely a part of its journey and not a destination, said Vijay Kedia of Kedia Securities in an interview with CNBC TV18 held on September 11.
Nifty will reach 25,000, 30,000 and many more steps, along the way, he said.
On September 11, the Nifty 50 index reached a new all-time high of 20,008.15 points.
At close, it ended almost a percent higher than the previous close at 19,996.35 points.
Kedia is bullish on the Indian markets and expects the rising journey to continue.
However, the market expert is worried about the speed at which the index is proceeding.
Oil Prices
The benchmark oil price was little changed on Monday, holding above the $90 a barrel reached last week for the first time in 10 months following fresh Saudi and Russian crude output cuts.
Brent crude rose by 12 cents to $90.77 a barrel while US West Texas Intermediate crude rose 8 cents to $87.59.
Saudi Arabia and Russia last week announced that they will extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.
The supply cuts overshadowed continuing concern over Chinese economic activity.
On Monday U.S. Deputy Treasury Secretary Wally Adeyemo said that China’s economic problems were more likely to have a local impact than affect the United States.
Dollar Index
The Dollar index traded 0.53 percent lower in futures at 104.54, whereas the value of one dollar hovered near Rs 82.91
Gold Prices
Gold rose on Monday, heading for its best session in nearly two weeks as the dollar retreated before this week’s key U.S. inflation reading that could influence the Federal Reserve’s interest rate decision later this month.
Spot gold climbed 0.2 percent to $1,922.84 per ounce by 11:41 am ET, while US gold futures rose 0.2 percent to $1,949.6.
A weaker dollar contributed to the gains, said Bank of China International analyst Xiao Fu, adding “the worries about a German recession and European slowdown certainly will have some safe-haven supportive factor as well.”
FIIs and DIIs
Foreign institutional investors (FII) purchased shares worth Rs 1,473.09 crore, while domestic institutional investors (DII) bought Rs 366.24 crore worth of stocks on September 11, provisional data from the National Stock Exchange (NSE) showed.
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