Stock Market Today: Top 10 things to know before the market opens on 4th September
The benchmark Sensex and Nifty indices are likely to open marginally higher on September 4 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 15 points.
The market started the new month on a positive note with the Sensex rallying 556 points, or 0.86 percent, to 65,387 points, and the Nifty climbing 182 points, or 0.94 percent, to 19,435 points on September 1.
But, whether the momentum will sustain remains to be the big question.
The Nifty formed a long bullish candlestick, which resembled a bullish engulfing pattern, on the daily chart, raising the possibility of more upside in the near term.
The pivot point calculator indicates that the Nifty is likely to take support at 19,306 followed by 19,258 and 19,180.
In case of an upside, 19,461 can be the key resistance, followed by 19,509 and 19,586.
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 15 points. GIFT Nifty futures stood at 19,554 points after making a high of 19,573 points.
US Markets
The Dow Jones Industrial Average rose on Friday as traders weighed the latest US jobs report to conclude a winning week.
The 30-stock Dow ticked up 115.80 points, or 0.33 percent, to close at 34,837.71 The S&P 500 added roughly 0.18 percent to finish the session at 4,515.77, and the Nasdaq Composite inched down 0.02 percent to end the day at 14,031.81.
The major averages were up sharply earlier in the day.
The Dow briefly traded more than 250 points higher, while the S&P 500 and Nasdaq climbed about 0.8 percent each before easing. The Dow and the Nasdaq added 1.4 percent and about 3.3 percent for the week, respectively, notching their best performances since July.
The S&P 500 gained 2.5 percent to register its best week since June.
European Markets
European stock markets closed mixed on Friday after a key US jobs report showed higher-than-expected new nonfarm payrolls, along with a rise in unemployment.
The regional Stoxx 600 index closed flat, with sectors spread across positive and negative territory.
Oil and gas stocks climbed 1.9 percent after analysts raised 2023 oil price forecasts for the first time in four months in a Reuters poll released Thursday.
Auto stocks fell 2.6 percent, however, after a survey from Germany’s Ifo Institute flagged a deterioration in sentiment among automakers; almost half said a lack of orders was impeding production.
It comes after the Stoxx 600 finished August 2.8 percent lower, according to Eikon data, amid uncertainty over the path of rate hikes, weak European data and pessimism over the reopening of China.
Beijing on Friday gave a boost to global sentiment as the Caixin/S&P global manufacturing purchasing managers’ index outperformed analyst expectations and showed factory activity expansion in August.
Traders were examining the US jobs report for signs of a significant economic slowdown that could spur the Federal Reserve to pause rate hikes.
The US added more jobs than expected, but the unemployment rate hit 3.8 percent — the highest level since February 2022.
Asian Markets
Asia-Pacific markets were mixed to start the week as investors look to key data from Australia and China later in the week.
The Reserve Bank of Australia will release its rate decision on Tuesday, while China is expected to release its trade balance for August on Thursday and its inflation rate next weekend.
In Australia, the S&P/ASX 200 started the week up 0.37%, while Japan’s Nikkei 225 also climbed 0.12 percent and the Topix was 0.16 percent higher.
South Korea’s Kospi gained 0.21 percent, while the Kosdaq was down 0.18 percent.
Futures for Hong Kong’s Hang Seng index stood at 18,304, pointing to a weaker open compared with the HSI’s close of 18,382.06 last Thursday.
Hong Kong’s markets were closed Friday as the city braced for super typhoon Saola, which made landfall over the weekend.
Uday Kotak ends one brilliant chapter at the bank despite run-ins with the regulator
Uday Kotak resigns as managing director and chief executive of Kotak Mahindra Bank after a scintillating two decades.
In these 20 years, he has built a solid franchise with a deposit base of nearly Rs 4 lakh crore, making Kotak the eleventh largest lender in the country in terms of deposit size and fourth-largest among private banks.
Kotak’s achievements are, of course, not confined to banking. Starting with bill discounting from 1985, he has built a clutch of financial institutions including a mutual fund, a life insurance, a general insurance company, a couple of NBFCs and a securities company.
The banking licence was awarded to Uday Kotak in 2003 and, for a while, the bank grew largely by providing support to its investment banking and securities companies.
The lender took a leap in size and reach when it acquired ING Vysya Bank in 2014.
To Kotak’s credit, his has been a near flawless record in terms of quality of the bank’s asset book.
Even at the height of the asset quality crises that roiled the banking sector in the middle of the last decade, when even large private lenders like ICICI Bank and Axis Bank grappled with soaring non-performing assets (NPA), Kotak Bank, like HDFC Bank, remained largely unscathed.
Sebi’s proposed fee collection portal for advisors evokes mixed response
The Securities and Exchange Board of India (Sebi) proposes to create a closed ecosystem for registered investment advisors and research analysts to collect fees from their clients.
This will help investors identify and avoid unregistered entities.
This is part of Sebi’s overall drive to protect investors from financial influencers (finfluencers) or unregistered entities that may misguide or exploit investors. In another consultation paper, SEBI has proposed that registered entities or intermediaries should have no relationship with unregistered finfluencers for any promotion or advertisement of their services.
ITC to invest Rs 1,500 crore to set up food manufacturing, packaging plants in MP
Diversified group ITC on Sunday said it will invest around Rs 1,500 crore to set up an integrated food manufacturing and logistics facility and a sustainable packaging products manufacturing facility at Sehore in Madhya Pradesh.
The two projects spread over an area of nearly 57 acres will give a boost to agricultural and manufacturing sectors in Madhya Pradesh, ITC said in a statement.
“The two projects, when complete, would entail a total investment outlay of Rs 1,500 crores which will support livelihoods across sustainable value chains,” it said.
While the food plant will manufacture ITC’s products including atta brand Aashirvaad, Sunfeast biscuits, and ‘YiPPee!’ noodles, the moulded fibre products facility will be a pioneer in sustainable packaging, contributing to plastic substitution in areas such as packaging for electronic items, FMCG, and the food and beverage sector.
BSE revises circuit limit for Jio Financial, RailTel, 8 more stocks
The BSE stock exchange has revised the price band for Jio Financial Services to 20 percent from 5 percent along with those for nine other stocks. The revision in price bands of the 10 stocks was announced on September 1.
The price bands for Shri Venkatesh Refineries, RailTel Corporation of India, India Pesticides, SRG Securities Finance, Dolphin Offshore Enterprises and Super Fine Knitters has been revised to 10 percent.
Those for Rishabh Digha Steel & Allied Products, Vertex Securities and RattanIndia Power have been changed to 5 percent.
Oil Prices
Oil prices were set to snap a two-week losing streak as they rose for a fourth consecutive session on Friday due to tightening supplies and expectations that the OPEC+ group of oil producers would extend output cuts to the end of the year.
The US West Texas Intermediate crude (WTI) was up 81 cents, or 1 percent, at $84.45 a barrel, while Brent crude was up 82 cents, or 0.9 percent, at $87.65 a barrel.
WTI has risen over 5 percent during the week, while Brent was up about 3 percent.
Analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million barrels a day into October, adding to cuts by the Organization Petroleum Exporting Countries and allies, known as OPEC+.
“We continue to expect cuts to be extended, with prices above US$90/bbl (on a sustained basis) required to draw OPEC supply back to market, as well as incentivize U.S. shale producers to increase drilling activity,” the National Australia Bank said in a client note on Friday.
Dollar Index
The Dollar index traded 0.01 percent lower in futures at 104.23, whereas the value of one dollar hovered near Rs 82.67.
Gold Prices
Gold gave up initial gains on Friday, but was still headed for a weekly rise after an increase in the US unemployment rate boosted bets on a pause in the Federal Reserve’s interest rate hikes.
Spot gold lost 0.05 percent to $1,938.79 per ounce.
It was poised for a 1.2 percent weekly gain after prices touched one-month highs on Wednesday. US gold futures for December delivery were higher 0.02 percent to $1,966.20.
US manufacturing contracted for a 10th straight month in August, but the pace of decline continued to slow, data from the Institute for Supply Management (ISM) showed.
“The ISM report has reduced the gold rally to a range trade, likely between $1,920 and $1,960 in the short term.
The gold market may wait for more clues as to intentions at the Fed’s September meeting, which will include a fresh set of dots,” said Tai Wong, a New York-based independent metals trader.
FIIs and DIIs
Foreign institutional investors (FII) bought shares worth Rs 487.94 crore, while domestic institutional investors (DII) purchased Rs 2,294.93 crore worth of stocks on September 1, provisional data from the National Stock Exchange (NSE) showed.
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