Dalal Street.
The GIFT Nifty’s performance indicates a negative start for the broader index, with indices likely to begin lower on September 11 after losing 10 points.
In the latest trading session, the Sensex experienced a surge of 333 points to reach 66,599, while the Nifty followed suit by jumping 93 points for the sixth consecutive day, setting up higher highs and lower lows on the daily charts.
Nagaraj Shetti, technical research analyst at HDFC Securities, stated that the market has started to overcome one after another hurdles and is expected to surpass the current resistance of 19,865 levels. The short-term trend is positive, with immediate support at 19,650.
The pivot point calculator indicates that the Nifty may be gaining momentum at 19,751, 19,718, and 19,665, while the key resistance is at 18,596.
Stay up-to-date on Moneycontrol’s latest updates on the currency and equity markets. We have compiled a list of significant headlines across various news outlets, which may affect Indian and global markets in different ways.
The GIFT Nifty
GIFT Nifty experiences a slight drop of 10 points at the beginning of the day, indicating fewer gains than gains. Nevertheless, futures in the broader index hit 19,927 points and reached 19,937 points.
Monday’s trade setup: Top 15 things to know before the first bell rings.
The US markets
Stocks rose slightly on Friday, but a losing week was still present due to renewed concerns about the Federal Reserve’s potential to raise policy rates more than anticipated. The S&P 500 finished 4,457.49 after rising 0.14 percent and adding 72.86 points to the Dow Jones Industrial Average, which closed at 34,576.59.
A week of losing was capped by major averages, leading to drops of 1.3 percent for the S&P and Nasdaq and 1.9 percent in the Dow.
The European Markets
Following US stocks’ tentative gains amid uncertainty over the inflationary outlook, European markets closed slightly higher on Friday. The basic resources sector saw a 0.4% decline, while media stocks experienced 1.1 percent growth and the Stoxx 600 index closed up 0.22 percent, its highest since February 2018. The index had lost 1 percent this week after three sessions.
The global market mood has been waning in recent days, as investors assess weak Chinese numbers, higher government bond yields, and renewed concerns about inflation in the US. The US consumer price index will be released on September 13, and investors are also keeping an eye on oil and gas prices, which have both increased this week due to Saudi Arabian supply cuts and strike action in Australia.
The Euro Zone’s latest figures on Thursday revealed that the economy grew by 0.1 percent in the second quarter, which was less than the 0.3 percent increase predicted in a preliminary assessment.
Asian Markets.
The start of a week with significant economic data from major economies was marked by mostly downvoting in Asia-Pacific markets. India’s August inflation and industrial output figures will be announced on Tuesday, while China will report its industrial production, retail sales, and house sale prices on Friday.
The S&P/ASX 200 in Australia dropped by 0.2 percent, and the Nikkei 225 neared a level while the Topix experienced slapping. In early morning trade, the Kospi in South Korea decreased by 0.27 percent; the KOSDAQ declined by 2.28 percent.
The Hang Seng index in Hong Kong showed a weaker open than the previous HSI close of 18,202.07 on Thursday, with futures standing at 18,156 and trade being cancelled due to the city’s experience with the heaviest rainstorm in 140 years.
The G20 summit will see RBI introduce a wholesale CBDC for the call market by October.
Senior central bank officials announced on September 10 that the Reserve Bank of India (RBI) would launch the digital rupee-wholesale (CBDC) wholesale version in the call money market by October.
Ajay Kumar Choudhary, an executive director at the RBI, announced that the pilot for its wholesale CBDC will start this month or next month after announcing it on the sidelines of the G20 Leaders’ Summit in New Delhi.
Markets are expected to have a busy week, with 6 IPOs and 5 listings on the horizon.
The primary market’s momentum is expected to pick up this week with six companies preparing to raise more than Rs 4,000 crore from the public purse, and five listings in line for launch.
RR Kabel, the company that issues its first public share in the mainboard segment, will open on September 13, with a price band of Rs 983-1,035 per share. The company aims to raise Rs 1,964.01 crore from the offer, which includes fresh issues worth Rs 180 crore and an offer-for-sale (OFS) of 1.72 crore equity shares.
Should the Ratnaveer Precision profit be booked up even though it may be listed at a 40% higher price than its issue price?
Ratnaveer Precision is set to go public on September 11 after being listed from September 14 and will likely sell at a minimum of 40 percent above the current issue price of Rs 98 per share, as per experts.
Analysts, who wished to remain anonymous, stated that Ratnaveer Precision shares were being traded at a 50 percent premium in the grey market, an unofficial platform for IPO stocks.
Prashant Tapse, senior VP-Research at Mehta Equities, stated that the listing would likely yield a 40-50 percent gain due to the strong demand from investors in all categories.
The premium is justified by the company’s niche SS cold-rolled products, global demand, high-margin portfolio, and investor-friendly IPO pricing, which allows for significant listing gains.
Mohandas Pai reports that the US has recognized India’s crucial role in overcoming China’d hegemony at the G20 summit.
Mohandas Pai, the head of Manipal Global Education, stated that India’s contribution to counter Chinese hegemony is crucial, as it has been recognized by the United States due to its economic development, population growth, and digital transformations, among other things.
India is currently leading the digital revolution and being one of the three great digital powers of today, as stated by the former chief finance officer of Infosys. He added that democracy cannot exist without India and that one can accept India’s role as a leader of “the decolonized world.”
Pai spoke exclusively with Moneycontrol and expressed his belief that India and the US were speaking out in solidarity at the G20 summit. He also commended Joe Biden for acknowledging India’s global potential.
The cost of oil
On Friday, oil prices hit a nine-month high after rising U.S. diesel futures and concerns about tight oil supplies following Saudi Arabia and Russia’s supply cuts. Brent future price increases were 0.8% at $90.65 per barrel; US West Texas Intermediate (WTI) crude was 0.7 percent at 65.4 cents to $87.51.
Brent and WTI were both technically overbought for the sixth consecutive day, with both benchmarks showing up to a high close.
The tight market during the winter is likely to be controlled by OPEC+, as stated by Edward Moya, a senior market analyst at OANDA.
The Dollar Index is a useful resource.
The Dollar index experienced a 0.06 percent decline in futures at 105.06, while the value of one dollar was close to Rs 83.12.
What is the price of gold?
On Friday, gold prices rose after a minor drop in the dollar, as investors rested for more economic data to assess the Federal Reserve’s interest rate hike plans next week. Spot gold was trading at $1,920.49 per ounce by 2:06 p.m. EDT (1806 GMT), but U.S. gold futures were only slightly affected and settled at $14,942.70.
The dollar is on course for its longest weekly winning streak since 2014, thanks in part to recent strong US economic data. As the greenback meanwhile continued to strengthen, it was on track for another weekly decline. This week, we will be watching US inflation readings and the Fed’s policy decision on September 20.
Both FIIs and DII have specific characteristics.
On September 8, provisional data from the National Stock Exchange (NSE) revealed that shares were sold by FIIs, which brought the total value of shares to Rs 224.22 crore, while domestic institutional investors (DII) bought Rs 1,150.15 crore worth of stocks.
With input from Reuters and other media outlets.