Stock Market Today: Top 10 things to know before the market opens on 5th September
The benchmark Sensex and Nifty are likely to open marginally lower on September 5 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 30 points.
The BSE Sensex climbed 241 points to 65,628, while the Nifty50 jumped 94 points to 19,529, and formed a Doji kind of candlestick pattern on the daily scale, as the index closing was very near to the opening levels.
The index has finally surpassed the 20 DEMA (exponential moving average placed at 19,416) on the daily time frame, adding to the bullish undertone and is likely to head towards the bearish gap in the comparable period,” Osho Krishan, senior analyst, technical & derivative research at Angel One said.
The pivot point calculator indicates that the Nifty may be taking a support at 19,459, followed by 19,433 and 19,390.
On the flip side, 19,545 can act as the key resistance followed by 19,572 and 19,615.
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 30 points.
GIFT Nifty futures stood at 19,569 points after making a high of 19,588 points
US Markets
Stock futures are mixed Monday night as the market looks to maintain momentum in the holiday-shortened week.
]Futures tied to the Dow Jones Industrial Average lost 37 points, or 0.11 percent.
S&P 500 futures were lower by 2.25 points, or 0.05 percent, while Nasdaq 100 futures gained 6.25 points, or 0.04 percent.
The moves follow an upbeat week for Wall Street, with the Dow and the Nasdaq notching their best performances since July.
The 30-stock Dow and the Nasdaq added 1.4 percent and about 3.3 percent for the week.
The S&P 500 gained 2.5 percent to register its best week since June.
Traders last week were weighing new signs of a slowing economy and easing pricing pressures.
The latest US non-farm payrolls report showed the unemployment rate ticked higher to 3.8 percent in August, reaching its highest level in more than a year.
Economists had expected it to remain at 3.5 percent.
Average hourly earnings also increased 4.3 percent on a year-over-year basis, less than the 4.4 percent increase expected by economists polled by Dow Jones.
European Markets
European stock markets closed flat on Monday, losing momentum through the session after appearing to shake off the recent negativity.
The Stoxx 600 index ended little changed from the previous session, paring gains after hitting its highest level since August 9 in morning trade.
Travel and leisure stocks gained 0.5 percent as sentiment around equities brightened following Friday’s US jobs report.
Investors saw signs of a slowdown which could rein in Federal Reserve hawkishness.
Max Kettner, chief multi-asset strategist at HSBC, told CNBC that a key question for equities was whether the Fed will really deliver the five rate cuts in 2024 that are currently priced in by markets.
I think we don’t have a recession on the cards in the US, never had, and also don’t have it for 2024.
In fact, when we look at some of the data right now around the manufacturing sector in the US, there are signs the sector can pick up a bit further steam,” Kettner said.
Asian Markets
Asia-Pacific markets fell ahead of Australia’s central bank’s rate decision, as well as inflation and business activity readings from across the region.
The Reserve Bank of Australia is expected to hold its benchmark policy rate at 4.1 percent for the third straight month, according to a Reuters poll of economists. In Australia, the S&P/ASX 200 slid 0.45 percent.
Elsewhere, South Korea’s inflation rate for August came in higher than expected at 3.4 percent.
Thailand and the Philippines are also expected to release inflation data Tuesday.
Investors will also be monitoring purchasing managers index readings from China, India and Hong Kong.
South Korea’s Kospi slid 0.19 percent, while the Kosdaq hovered slightly below the flatline.
Both Japan’s Nikkei 225 and Topix were also just below the flatline.
Futures for Hong Kong’s Hang Seng index stood at 18,719, pointing to a weaker open compared to the HSI’s close of 18,844.16.
Vishnu Prakash R Punglia to debut today: Will it be a bumper listing?
Infrastructure company Vishnu Prakash R Punglia (VPRPL) is expected to start the first day on the bourses on September 5 with at least 50 percent premium over the issue price of Rs 99 per share, said experts citing the robust IPO subscription numbers, increasing focus on the infrastructure space by the government, strong order book and reasonable valuations.
The maiden public issue closed last week with a massive 87.82 times subscription, backed by all categories of investors.
Qualified institutional buyers and high networth individuals (non-institutional investors) were aggressive amongst them, buying 171.69 times and 111.03 times the allotted quota.
Retail investors also lent great support to the issue, buying 32.01 times the portion set aside for them and employees 12.97 times.
Considering robust demand response by investors in all categories, we expect 50 percent and above listing gain from its issue price of Rs 99 apiece,” Prashanth Tapse, research analyst and senior VP research at Mehta Equities, said.
Big Tech firms bracing for EU’s biggest antitrust crackdown; Apple, Alphabet, Meta likely to be affected
Big Tech is bracing for the European Union’s biggest ever clampdown on anti-competitive practices in the digital economy, potentially provoking a new wave of legal battles between regulators and Silicon Valley.
By September 6, antitrust regulators will announce a list of services likely to include Alphabet Inc.’s Google Search, Apple Inc.’s App Store, Amazon.com Inc.’s marketplace and Meta Platforms Inc.’s Facebook, to be targeted by rules aimed at preventing the most powerful firms from wrecking new markets before it’s too late to act.
The Digital Markets Act, or DMA, which takes effect early next year, will impose a rigid regime of dos and don’ts on firms that previously left regulators in their wake, despite multiple probes into practices that have resulted in billions of euros in fines and tax orders.
It will be illegal for certain platforms to favor their own services over those of rivals.
They’ll be barred from combining personal data across their different services, prohibited from using data they collect from third-party merchants to compete against them, and will have to allow users to download apps from rival platforms.
DLF eyes Rs 400 crore in revenue from newly launched 92 independent floors in Gurugram
Real estate major DLF has launched 92 luxury independent floors in Gurgaon and expects a revenue of close to Rs 400 crore from the sales, the company’s joint managing director and chief business officer Aakash Ohri told Moneycontrol.
“The company is launching 92 independent floors in Gurugram located in corner plots in the price range of Rs 4 to Rs 5 crore and is expecting a sales revenue of Rs 400 crore from their sale,” he said.
These are of sizes ranging from 2400 to 3100 sq ft, he said.
We have done close to almost Rs 8000 crore in the independent floors segment since 2020,” he said.
Hero MotoCorp to invest Rs 550 crore into Ather Energy
Two-wheeler major Hero MotoCorp said on September 4 that it has got the board’s approval to invest Rs 550 crore into electric two-wheeler maker Ather Energy, in which it is an existing investor.
The Board of Directors of the Company at its meeting held on September 4, 2023, has approved an investment of up to INR 550 crore (Rupees five hundred fifty crores), in the Rights issue of Ather Energy Private Limited,” The NSE filing by Hero MotoCorp said.
This comes at a time when the EV maker was looking to close a funding round before its IPO listing plans.
Industry sources said that Ather Energy is mulling an IPO by 2024.
Zerodha MF gets ready to launch its first two schemes; files draft documents with SEBI
Zerodha Asset Management Ltd, one of India’s newest fund houses, is getting to ready to launch mutual fund schemes, nearly a month after it got its final license by the Securities and Exchange Board of India (SEBI).
In keeping with its mandate to launch passive scheme, Zerodha has filed draft offer documents with the market regulator to launch two schemes Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250). Both the schemes would be benchmarked against Nifty Large Midcap 250 Index Fund.
While one is a normal diversified equity fund, the ELSS scheme is a tax saver scheme that will give the Section 80C tax deduction benefits, up to an investment of Rs 1.5 lakh.
As per its business plan, Zerodha AMC will launch passive schemes. According to industry officials, the fund house will launch a mix of index funds as well as Exchange-Traded Funds (ETF).
Only online mode to credit money to the investor protection and education fund: Sebi
Crediting funds to the Sebi Investor Protection and Education Fund (IPEF) can henceforth be done only online and via a link given on the regulator’s website.
The Securities and Exchange Board of India (Sebi) had earlier prescribed that the amounts be credited to the fund through online mode or through a demand draft drawn in favour of the Board.
But, in a circular dated September 4, the regulator has said that remittances to the SEBI IPEF be made only through the specified link.
Oil Prices
Oil prices ticked up in Asian morning trade on Monday, as market sentiment was buoyed by positive China and US economic data, as well as expectations of ongoing crude supply cuts from major producers.
Brent crude was up 17 cents, or 0.2 percent, at $88.72 a barrel at 0015 GMT.
The US West Texas Intermediate crude rose 25 cents, roughly 0.3 percent, to $85.80.
The sustained upward price movement comes after both contracts settled at their highest levels in more than half a year last week, breaking a two-week losing streak.
On the demand side, China’s manufacturing activity unexpectedly expanded in August, data from Caixin’s manufacturing PMI survey indicated, leading to renewed optimism about the economic health of the world’s largest oil importer.
Dollar Index
The Dollar index traded 0.10 percent lower in futures at 104.13, whereas the value of one dollar hovered near Rs 82.73.
Gold Prices
Gold prices climbed on Monday towards a one-month peak scaled in the previous session, supported by a slight pullback in the dollar and prospects that the U.S. Federal Reserve would take a pause from interest rate hikes this year.
Spot gold gained 0.3 percent to $1,945.40 per ounce by 0334 GMT, after climbing to as high as $1,952.79 on Friday.
The US gold futures added 0.2 percent to $1,971.70.
Gold is hovering under resistance at the $1,951 level in thin trading conditions given the U.S. holiday,” said KCM Trade Chief Market Analyst Tim Waterer.
The precious metal will likely be depending upon Treasury yields taking a step lower in order to make a push to $1,950 and beyond this week.”
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 3,367.67 crore, while domestic institutional investors (DII) bought Rs 2,563.48 crore worth of stocks on September 4, provisional data from the National Stock Exchange (NSE) showed.
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