Stock Market Today: Top 10 things to know before the market opens on 29th August
The benchmark Sensex and Nifty indices are likely to open marginally lower on August 29 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 6 points.
The BSE Sensex gained 110 points to close the previous session at 64,996 points, while the Nifty50 closed 40 points higher at 19,306 points, trading near its 200-day moving average of 19,517 points and trying to sustain the ongoing momentum.
The pivot point calculator indicates that the Nifty may get support at 19,263, followed by 19,235 and 19,190.
In case of an upside, 19,352 can be the key resistance, followed by 19,380 and 19,425.
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 6 points after the Nifty closed 40 points higher at 19,306 points on August 28. GIFT Nifty futures stood at 19,366 points.
US Markets
Stock futures were near flat on Monday night as investors looked to the final days of what’s been a difficult August for the market.
Futures tied to the Dow Jones Industrial Average gained 15 points, or 0.04 percent. S&P 500 futures and Nasdaq 100 futures wavered near the flat line.
The moves follow a winning day on Wall Street, a rarity in recent weeks. The S&P 500 and Nasdaq Composite climbed 0.6 percent and 0.8 percent, respectively.
The Dow finished more than 200 points higher, which equates to a gain of about 0.6 percent. 3M helped the blue-chip average in the session, rallying more than 5 percent a day after Bloomberg News cited sources saying the conglomerate was ready to settle lawsuits that alleged some of its earplugs were faulty.
But Monday’s leg up can be characterized as a respite from what’s shaping up to be a tough month for stocks. With just three sessions left in August’s trading month, the Dow is on pace to finish 2.8 percent lower.
The S&P 500 and Nasdaq are poised for losses of 3.4 percent and 4.5 percent, respectively.
“It’s a lot of digestion right now as we pulled back a little bit off the year-to-date highs,” said Chris Barto, an investment analyst at Fort Pitt Capital. Traders are “getting back to their desks from summer and looking at their portfolios and reallocating towards the end of the month.”
Investors will watch for earnings from companies including Best Buy and Nio before the bell Tuesday, followed by HP after the close.
Data on home prices, job openings and consumer confidence will also be due Tuesday morning.
European Markets
European shares traded higher on the final trading week of August, as traders weighed the prospect of higher interest rates from the US Federal Reserve and looked ahead to upcoming economic data later in the week. Germany’s DAX 30 finished up 1 percent, France’s CAC 40 up 1.4 percent, and the Italian FTSE MIB was up 1.3 percent by the end of the trading session.
Markets were closed in the UK for a public holiday. It came as investors continued to reflect on a roundup of commentary from the Kansas City Federal Reserve’s annual retreat in Jackson Hole, Wyoming, last week.
The most closely watched speech of the event came from Fed Chair Jerome Powell. The US central bank head said that inflation remains too high and that the Fed is ready to continue hiking interest rates to tame persistently high prices.
While Powell said the Fed could be flexible, he added it still has further to go to fight inflation. “Although inflation has moved down from its peak — a welcome development — it remains too high,” he said in prepared remarks.
We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Asian Markets
Asia-Pacific markets rose across the board as Wall Street came off a winning day on Monday.
Names like Meta and Apple traded slightly higher, while Nvidia added 1.8 percent. Shares of electric vehicle giant Tesla inched up 0.1 percent.
Japan’s Nikkei 225 climbed 0.28 percent after leading gains in Asia on Monday, while the Topix was up 0.15 percent. The country’s unemployment rate for July also came in higher than expected, at 2.7 percent, compared with the 2.5 percent expected in a Reuters poll.
Australia’s S&P/ASX 200 rose 0.11 percent, while South Korea’s Kospi gained 0.27 percent and the Kosdaq was 0.17 percent higher. Futures for Hong Kong’s Hang Seng index stood at 18,300, pointing to a stronger open compared with the HSI’s close of 18,130.74.
Overnight in the US, all three major indices gained ground, with the Dow Jones Industrial Average climbing 0.62 percent and the S&P 500 cup 0.63 percent limbed 0.63 percent.
The Nasdaq Composite advanced 0.84 percent. Monday’s rally was broad: Ten of the 11 sectors in the S&P 500 were positive. The only outlier was the utilities sector, which ticked lower by 0.04 percent.
Jio Financial Services to enter insurance sector, to offer life, health, general cover; may partner global firms
Jio Financial Services will enter the insurance segment to offer life, general, and health insurance products, said Reliance Industries Chairman Mukesh Ambani on August 28.
Speaking at the annual general meeting, Ambani said, “Jio Financial Services will…offer simple, yet smart, life, general, and health insurance products through a seamless digital interface, potentially partnering with global players.”
JFS will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way, he added.
An investigation of India’s Adani group by the market regulator has uncovered violations of rules on disclosures by listed entities and limits on the holdings of offshore funds, two sources with direct knowledge of the matter said.
The Securities and Exchange Board of India (SEBI) launched the inquiry after US-based Hindenburg Research raised governance concerns around the Gautam Adani-led group, shaving more than $100 billion from the market value of its companies.
The ports-to-power conglomerate had denied wrongdoing in January.
The sources, who sought anonymity as they were not authorized to speak to the media, characterized the violations as being of a “technical” nature that would attract no more than a monetary penalty once the investigation is complete, however.
Bulk deals | Tiger Global Management offloads Rs 1,123.85 cr shares in Zomato, exits startup
Internet Fund III Pte Ltd, the venture capital fund managed by US-based investment management company Tiger Global Management, has exited Zomato by selling entire its shareholding in the food delivery giant for Rs 1,123.85 crore, via open market transactions on August 28.
The internet fund sold 12.34 crore shares or 1.44 percent stake in Zomato, as per bulk deals data available on exchanges.
The shares were sold at an average price of Rs 91.01 per share.
However, the stock climbed 1.5 percent to Rs 92.35 at the day’s closure. Star Health and Allied Insurance Company was also in focus on Monday as more than three percent of shares exchanged hands via block deals. The stock rose 0.16 percent to Rs 611.15.
Sahaj Fashions IPO subscribed 3.44 times on second day
The maiden public issue of Sahaj Fashions is witnessing a good response from investors.
The issue was subscribed 3.44 times, receiving bids for 1.6 crore shares against the offer size of 46.52 lakh shares on August 28, the second day of bidding.
Retail investors continued to provide strong support to the offer, buying 6.03 times the allotted quota, while the portion set aside for high-net-worth individuals was subscribed 1.2 times.
The company has reserved 2.36 lakh shares for the market maker, of the 46.52 lakh shares issue.
With this, the net issue is 44.16 lakh shares, which is divided equally between retail and high net worth individuals.
The garment fabric manufacturer is planning to raise Rs 13.96 crore equity shares via its fixed price issue, at a price of Rs 30 per share.
Dollar hits nine-month high against yen
The dollar edged up to a nine-month high against the Japanese yen on Monday but dipped against a basket of currencies after Federal Reserve Chair Jerome Powell on Friday left open the possibility of further rate hikes.
The greenback hit 146.685 Japanese yen, the highest since November 9.
Traders are watching out for any signs of intervention in the currency market from Japanese authorities as the yen weakens. Bank of Japan Governor Kazuo Ueda said on Saturday that the bank will maintain the current approach to monetary policy, as underlying inflation in Japan remains “a bit below” its 2 percent target.
Oil Prices
Oil rose on Monday after China took steps to bolster its flagging economy, though investors remained worried about the pace of growth as well as further US interest rate hikes that could dampen demand.
China halved stamp duty on stock trading in its latest attempt to boost struggling markets. The market is also keeping an eye on Tropical Storm Idalia and any risk it poses to oil and gas output in the US Gulf.
Brent crude rose 65 cents, or 0.8 percent, to $85.13 a barrel by 1350 GMT, breaking above the $85 mark after failing to do so earlier in the session. US West Texas Intermediate crude gained 45 cents, or 0.6 percent, to $80.28.
The focus today is on “China actions to support its economy, Tropical Storm Idalia heading for Florida and whether Brent can regain momentum on a break above $85,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Idalia was intensifying as it approaches Cuba, according to the latest update.
Dollar Index
The Dollar index traded 0.02 percent lower in futures at 104.05, whereas the value of one dollar hovered near Rs 83.09.
Gold Prices
Gold prices edged higher on Monday, helped by a retreat in the dollar and bond yields, while investors awaited a slew of U.S. economic data this week for more clues on interest rate outlook. Spot gold rose 0.4 percent to $1,921.86 per ounce.
US gold futures gained 0.6 percent to $1,952. The dollar was down 0.1% against rivals, making gold less expensive for other currency holders.
The benchmark 10-year Treasury yields held below recent peak.
Focus this week will on the US personal consumption expenditures price index report due on Thursday and the August nonfarm payrolls data on Friday for more clarity on the economy’s strength.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 1,393.25 crore, whereas domestic institutional investors (DII) purchased Rs 1,264.01 crore worth of stocks on August 28, provisional data from the National Stock Exchange (NSE) showed.
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