Stock Market Today: Top 10 things to know before the market opens on 6th September
The benchmark Sensex and Nifty indices are likely to open marginally lower on September 6 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 7 points.
The market settled higher for the third straight session with the BSE Sensex rising 152 points to 65,780, while the Nifty50 climbed 46 points to 19,575 and formed a small bullish candlestick pattern on the daily charts with continuing higher highs, higher lows formation and holding above the downward sloping resistance trendline.
“The Nifty has sustained a breakout from a descending channel on the daily chart.
The trend will remain favourable as long as the bulls can keep the Nifty above 19,440,” Rupak De, Senior Technical Analyst at LKP Securities, said.
The pivot point calculator indicates that the Nifty may be taking support at 19,539, followed by 19,525 and 19,501.
On the flip side, 19,501 can act as the key resistance followed by 19,600 and 19,624.
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 7 points. GIFT Nifty futures stood at 19,667 points after making a high of 19,679 points.
US Markets
S&P 500 futures traded near flat on Tuesday night as Wall Street looked beyond the losing session that marked the start of the holiday-shortened trading week.
Futures tied to the broad index and Dow Jones Industrial Average were little changed. Nasdaq 100 futures shed 0.1 percent.
The moves follow a down session on Wall Street, which was the first of the holiday-shortened trading week.
The Dow finished close to 200 points, or roughly 0.6 percent, lower, while the S&P 500 and Nasdaq Composite slipped 0.4 percent and nearly 0.1 percent.
Part of the downward pressure came from oil prices, which gained after Saudi Arabia and Russia extended their voluntary supply cuts. West Texas Intermediate futures rose more than 1 percent and briefly broke $87 per barrel, putting the price at its highest level since November.
Treasury yields also jumped in the session.
Oil prices and yields climbing can raise concerns about how the Federal Reserve will move interest rates going forward, according to Bill Merz, head of capital market research at US Bank Wealth Management.
“Rising oil prices really feeds into the story about inflation,” he said.
And the story about inflation feeds into bond yields and a story about the Fed and what the Fed is going to do.”
European Markets
European stock markets closed lower Tuesday, as a boost from Chinese stimulus measures faded.
The Stoxx 600 index ended 0.2 percent lower. Chemical stocks were down around 1.2 percent, as oil and gas climbed 1.2 percent.
It came after stock markets closed flat on Monday, losing momentum throughout the session after some of China’s biggest banks cut interest rates on a range of deposits.
Asia-Pacific stocks were lower on Tuesday as traders assessed weak Chinese services data, while U.S. markets slipped after Labor Day.
Danish drug maker Novo Nordisk closed 1% higher, after jumping 1.7 percent in mid-afternoon trade as it extended its lead as Europe’s new most valuable firm.
It powered past luxury goods giant LVMH at the Monday close after briefly taking the top spot last week, as it launched its weight loss drug Wegovy in the U.K.
Novo Nordisk closed with a market capitalization of around $428.3 billion, including unlisted shares, ahead of LVMH’s $417.86 billon, according to LSEG data.
Asian Markets
S&P 500 futures are near flat Tuesday night as Wall Street looked beyond the losing session that marked the start of the holiday-shortened trading week.
Futures tied to the broad index and Dow Jones Industrial Average were little changed. Nasdaq 100 futures shed 0.1 percent.
The moves follow a down session on Wall Street, which was the first of the holiday-shortened trading week.
The Dow finished close to 200 points, or roughly 0.6 percent, lower, while the S&P 500 and Nasdaq Composite slipped 0.4 percent and nearly 0.1 percent, respectively.
Part of the downward pressure came from oil prices, which rose after Saudi Arabia and Russia extended their voluntary supply cuts. West Texas Intermediate futures rose more than 1% and briefly broke $87 per barrel, putting the price at its highest level since November.
Treasury yields also jumped in the session. Oil prices and yields climbing can raise concerns about how the Federal Reserve will move interest rates going forward, according to Bill Merz, head of capital market research at US Bank Wealth Management.
Rising oil prices really feeds into the story about inflation,” he said.
And the story about inflation feeds into bond yields and a story about the Fed and what the Fed is going to do.”
Investors will watch Wednesday for economic data in the morning on the U.S. trade deficit and services industry.
A new beige book, which summarizes economic activity, will be released in the afternoon.
G20 troika first time with developing world, can amplify voice of Global South: PM Modi
Prime Minister Narendra Modi, in an exclusive conversation with Network18, said this is the first time the troika of G20 is with three members of the Global South – Indonesia, India and Brazil – and this can significantly advance the interests of the developing world.
The G20 troika refers to the grouping of three countries based on the previous, current and incoming G20 Presidencies.
While India is the current chair of the group of 20 leading economies, the country’s predecessor was Indonesia and its successor will be Brazil.
For the first time in the history of G20, the troika is with the developing world—Indonesia, India, and Brazil.
This troika can amplify the voice of the developing world, at a crucial time when there are increased tensions due to global geopolitics,” Modi said.
The prime minister stressed that India has been advocating for the Global South and raising their concerns at all multilateral forums including the G20.
These are countries with which we empathise.
Since we too are part of the developing world, we understand their aspirations,” he said.
Pre-sanctioned credit lines on UPI will aid in accelerating transactions,says UCO Bank’s Ashwani Kumar
The Reserve Bank’s announcement to allow banks to issue pre-sanctioned credit lines on the Unified Payments Interface (UPI) system will aid in accelerating the growth in transactions, UCO Bank MD and CEO Ashwani Kumar said on September 5.
According to the recent National Payments Corporation of India (NPCI) data, UPI transactions have touched 10 billion in a month, and in 18-24 months, it is expected to touch 20 billion.
“But with the RBI’s announcement of a credit line available to UPI, I think days are not far that…transactions will accelerate further,” Kumar said while speaking in a panel discussion ‘Leveraging Digital Infrastructure for transformation in lending & payments’ at the three-day ‘Global Fintech Fest 2023’.
Because this has been a demand from customers for a long time and once this is made available, the adoption of UPI will be huge, he said, adding that the banks then have to bring in technology to make it available to their customers.
The apex bank on Monday said the UPI System will also include pre-sanctioned credit lines issued by banks for transactions.
Earlier, only the deposited amount could be transacted through the UPI System.
In a circular, RBI said, “Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with the prior consent of the individual customer, are enabled for transactions using the UPI System”.
Kumar further said India is talking about cross-border transactions and the internationalisation of the rupee, and here, the payments bank will have a significant role to play.
Jupiter Life Line Hospitals mops up Rs 260.72 crore via anchor book ahead of IPO
Healthcare services provider Jupiter Life Line Hospitals has mobilised Rs 260.72 crore via anchor book, a part of qualified institutional buyers (QIB), on September 5, ahead of IPO opening.
As many as 39 investors made an investment in the company via anchor book including marquee names like Government of Singapore, Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Nomura Funds, HSBC Global, Florida Retirement System, and Natixis International Funds.
Domestic investors including SBI Mutual Fund, ICICI Prudential, Nippon Life, HDFC Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, UTI Mutual Fund, Motilal Oswal MF, HDFC Life Insurance, and SBI Life Insurance Company also participated in the anchor book.
Basilic Fly Studio IPO oversubscribed 286.61 times on final day
The IPO of Basilic Fly Studio has attracted huge interest from investors as the offer was oversubscribed 286.61 times, with bids for 146.06 crore equity shares as against the issue size of 50.96 lakh shares.
High net-worth individuals (HNIs) and retail investors lent big support to the issue as their reserved portions were booked 550.8 times and 415.3 times, respectively, while qualified institutional buyers (QIB) made an investment for shares 116.3 times the allotted quota.
The Chennai-based company intends to raise Rs 66.35 crore via public issue of 68.40 lakh shares.
The issue included reservation of 10.26 lakh shares for the market maker and the rest of 58.14 lakh shares was the net issue.
There was 50 percent reservation for the QIB in the net issue, 15 percent for HNIs and the remaining 35 percent for retail investors.
Birla Corp expects mining at Bikram coalmines to start in FY24: Chairman
Birla Corporation Limited expects mining at its coalmines at Bikram to start later in the current financial year, said Chairman Harsh Lodha on September 5.
Mining in coalmines at Marki Barka is expected to become operational in the financial year 2025-26, said Lodha at the company’s annual general meeting (AGM).
Once operational, these mines will not only lead to savings in fuel cost but also provide a high degree of fuel security to the company. With the commissioning of these coalmines, we would have one of the highest source of captive fuel for kiln (more than 55 percent) in the industry – insulating us from the vagaries of the market,” he added.
Oil Prices
Oil prices surged 2 percent on Tuesday to their highest since November, after Saudi Arabia and Russia extended their voluntary supply cuts by three months to the end of this year, worrying investors about potential shortages during peak winter demand.
Brent crude futures rose by $2.08, or about 2.3%, to $91.08 a barrel, eclipsing the $91 level for the first time since last November. Meanwhile, US.
West Texas Intermediate crude October futures rose $2.42, or about 2.8 percent, to $87.97 a barrel, also a 10-month high.
Investors had expected Saudi Arabia and Russia to extend voluntary cuts into October, but the three-month extension was unexpected.
“It would appear they’re trying to double down and capitalize on the recent price moves.
Put a big buffer in place for when the cuts end,” OANDA analyst Craig Erlam told Reuters.
Both countries said they would review the supply cuts monthly, and could modify them depending on market conditions.
With the production cut extended, we anticipate a market deficit of more than 1.5 million bpd in 4Q23. So, with oil inventories set to fall further over the coming months, we expect Brent to rise to $95/bbl (barrel) by year-end,” UBS analyst Giovanni Staunovo wrote in a note to clients.
Dollar Index
The Dollar index traded 0.46 percent higher in futures at 104.72, whereas the value of one dollar hovered near Rs 83.05.
Gold Prices
Gold slipped to a one-week low on Tuesday on rising bond yields and as investors opted for the U.S. dollar to hedge against global growth concerns. Spot gold declined 0.6 percent to $1,926.49 per ounce.
US gold futures fell 0.8 percent to $1,952.00.
Jitters about global growth, particularly in China and the Euro zone, caused rival safe-haven dollar to hit multi-month highs against a basket of currencies, making gold more expensive for overseas buyers.
“Global bond yields are up sharply across the board and it appears that there are concerns that global growth concerns could get even uglier and that’s sending everyone back to the dollar,” said Edward Moya, senior market analyst at OANDA.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 1,725.11 crore, while domestic institutional investors (DII) bought Rs 1,077.86 crore worth of stocks on September 5, provisional data from the National Stock Exchange (NSE) showed.
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