The benchmark Sensex and Nifty indices are likely to open marginally higher on September 15 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 24 points.
The BSE Sensex rose 52 points to 67,519, extending upward journey for 10th consecutive session, while the Nifty50 advanced 33 points to 20,103, a fresh closing high, and formed bearish candle with minor upper & lower wicks which resembles Spinning Top kind of candlestick pattern format on the daily charts, signalling indecisiveness among bulls and bears about future market trend.
"The "buy on dips" strategy is expected to be the preferred approach until Nifty falls below 19,900 decisively," Rupak De, senior technical analyst at LKP Securities said. On the upside, he feels Call writers at 20,100 are likely to defend the index against further upward movement. A sustained trade above 20,100 could potentially trigger a significant rally in the short term, he said.
The pivot point calculator indicates that the Nifty may be taking support at 20,057, followed by 20,028 and 19,980. On the higher side, 20,152 can be an immediate resistance, followed by 20,182 and 20,229.
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 24 points. GIFT Nifty futures stood at 20,232 points after making a high of 20,241 points.
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US Markets
The Dow Jones Industrial Average rallied the most in over a month as traders cheered the revival of Wall Street’s IPO market and a decent batch of economic data.
The Dow was up for the first day in three, climbing 331.58 points, or 0.96 percent to 34,907.11. The 30-stock index closed above its 50-day moving average for the first time since Sept 1. It was also the blue-chip average’s best day since Aug 7. The S&P 500 gained about 0.84 percent to 4,505.10, while the Nasdaq Composite moved 0.81 percent higher to 13,926.05.
Arm shares surged 24.7 percent after the chip design company started trading Thursday. Investors hope the biggest tech offering of the year could kickstart a sleepy IPO market. Arm’s initial public offering was priced at $51 a share Wednesday. In its first day, it closed at $63.59 a share. “The successful IPO of Arm certainly helps confidence,” said Art Hogan, chief market strategist at B. Riley Financial.
European Markets
European stock markets closed higher Thursday as investors in the region assessed the European Central Bank’s decision to hike interest rates once again. The ECB opted to increase rates by 25 basis points, a 10th consecutive hike taking its main rate to 4 percent. Ahead of the announcement, economists were divided on whether the central bank would keep rates steady or increase rates further.
The pan-European Stoxx 600 index ended 1.52 percent higher, building on a 0.3 percent uptick before the ECB announcement. The basic resources sector was up 4.2 percent after China’s central bank announced it would cut the reserve requirement ratio on most banks by 25 basis points from Sept 15, the latest move to gradually boost its stuttering economy.
Asian Markets
Asia-Pacific markets climbed ahead of key economic data out of China, which could give clues on the trajectory of the world’s second largest economy. China will release August data for its house prices, unemployment rate and retail sales, as well as urban investment.
Japan’s Nikkei 225 climbed 1.06 percent, while the Topix continued to push new 33-year highs and gained 0.98 percent. Most notably, shares of investment holding company Softbank surged over 3 percent, after shares of subsidiary Arm surged almost 25 percent on the Nasdaq. In Australia, the S&P/ASX 200 rose 1.56 percent. South Korea’s Kospi advanced 0.65 percent, while the Kosdaq was flat. Futures for Hong Kong’s Hang Seng index stood at 18,171, higher than the HSI’s last close of 18,047.92.
RBI announces list of upper layer NBFCs for 2023-2024
The Reserve Bank of India (RBI) on September 14 announced the list of non-banking finance companies (NBFCs) in the upper layer under scale based regulation for NBFCs for the year 2023-24. The list has 15 companies that include LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons Pvt Ltd among others.
The RBI had issued the Scale Based Regulation (SBR) on October 22, 2021. The framework categorizes NBFCs in base layer, middle layer, upper layer and top layer. Also, the regulation gives the methodology to identify the NBFCs in the Upper Layer as per their asset size and scoring methodology.
Julius Baer's Mark Matthews on factors that make him 'bullish on India'
India’s ability to reverse the structural decline in the rupee will draw foreign investors to the country, said Market Matthews, Head of Research, Asia, for Julius Baer during an exclusive interview with Moneycontrol. Since the rupee has been on a decline for decades, it will take longer to change investors’ views. The longer it remains stable, the easier it will be to get noticed, he added.
Matthews said that Julius Baer is overweight on India. He also said, India’s ability to accommodate manufacturing sector in a meaningful way and government push towards building physical infrastructure are important pieces of the India growth story.
Yatra Online raises Rs 348 crore from anchor investors ahead of IPO
Yatra Online, the country's third-largest online travel company, has mopped up Rs 348.75 crore from 33 anchor investors on September 14, a day before its initial public offering (IPO) opens.
Marquee investors that participated in the anchor book included Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, Elara India Opportunities Fund, Whiteoak Capital, and Quantum-State Investment Fund. ICICI Prudential Mutual Fund, Mirae Asset, Tata Mutual Fund, Bandhan Mutual Fund, Max Life Insurance Company, Bajaj Allianz Life Insurance Company, and Edelweiss Trusteeship also invested in the company via the anchor book.
RR Kabel IPO fully subscribed on second day of bidding
The Rs 1,964-crore public issue of RR Kabel, backed by global private equity firm TPG, has been subscribed 1.39 times on the second day of its bidding of September 14, with bids for 1.85 crore equity shares against offer size of 1.33 crore shares. All kind of investors showed good interest in the offer on Thursday, a day before the issue closing of September 15.
High net worth individuals have bought 2.1 times the allotted quota and qualified institutional buyers (QIB) 1.65 times the portion set aside for them, which were 15 percent and 50 percent of total issue size, respectively.
Retail investors have bid for 95 percent shares of the reserved portion which is 35 percent of the offer, and employees 1.52 times. The consumer electrical goods manufacturer has reserved Rs 10.8 crore worth shares for its employees who will get those shares at a discount of 98 per share to the final offer price.
Oil Prices
Oil prices jumped on Thursday, with U.S. crude topping $90 a barrel, as expectations of a tighter supply grew. West Texas Intermediate crude (WTI) gained 1.6 percent to reach a high of $90.04 per barrel, touching its highest level since November 2022. Brent crude was up 1.7 percent, at $93.47, reaching a 10-month high. WTI crude last traded at $90.02 a barrel.
Saudi Arabia and Russia have extended their oil output cuts to the end of 2023, and the move could result in a substantial market deficit for the rest of 2023, the International Energy Agency said on Wednesday.
“From September onwards, the loss of OPEC+ production... will drive a significant supply shortfall through the fourth quarter,” the agency said in its monthly report.
Dollar Index
The Dollar index traded 0.47 percent higher in futures at 105.26, whereas the value of one dollar hovered near Rs 83.06.
Gold Prices
Gold prices held near a three-week low on Thursday after higher-than-expected US producer prices data and retail sales numbers raised worries that U.S. interest rates are likely to stay higher for longer, boosting the dollar and bond yields.
Spot gold rose 0.1 percent to $1,909.19 per ounce by 10:52 a.m. EDT (1452 GMT), after touching $1,904.93, its lowest since Aug. 25. U.S. gold futures fell 0.1 percent to $1,930.70. “We saw some headline inflationary data that was hotter than expected and as a result, we are seeing yields tick higher once again and continue to pressure the spot gold market,” said David Meger, director of metals trading at High Ridge Futures.
FIIs and DIIs
Foreign institutional investors (FII) bought shares worth Rs 294.69 crore, while domestic institutional investors (DII) sold Rs 50.80 crore worth of stocks on September 14, provisional data from the National Stock Exchange (NSE) showed.
(With inputs from Reuters and other agencies.)
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