The market is expected to open in the red as trends in the SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 140 points.
The benchmark indices moved within the trading range of August 30 for the fourth consecutive session. The BSE Sensex fell 49 points to 59,197, while the Nifty50 declined 10 points to 17,656 and formed a small-bodied bearish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,574, followed by 17,492. If the index moves up, the key resistance levels to watch out for are 17,751 and 17,846.
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:
US Markets
Wall Street's main indices closed lower on Tuesday, the first session after the US Labor Day holiday and summer vacations, as traders assessed fresh economic data in volatile trading.
The Dow Jones Industrial Average fell 173.14 points, or 0.55 percent, to 31,145.3; the S&P 500 lost 16.07 points, or 0.41 percent, to 3,908.19; and the Nasdaq Composite dropped 85.96 points, or 0.74 percent, to 11,544.91.
Asian Markets
Markets in Asia-Pacific opened lower on Wednesday as investors anticipate the Federal Reserve to give its summary on current economic conditions, also known as the Beige Book. The Nikkei 225 in Japan traded 0.41 percent lower and the Topix was also 0.37 percent lower. In South Korea, the Kospi traded 0.73 percent lower, and the S&P/ASX 200 in Australia was 0.47 percent lower.
SGX Nifty
Trends in SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 140 points. The Nifty futures were trading around 17,535 levels on the Singaporean exchange.
Oil falls as demand fears overtake OPEC-led rally
Oil prices sank on Tuesday after a two-day rally as concern returned about weaker demand and the prospect of more interest rate hikes trumped support from OPEC+'s first output target cut since 2020.
Brent crude was down $3.26, or 3.4 percent, to $92.48 at 11:27 a.m. EDT (1527 GMT). US West Texas Intermediate (WTI) fell from Monday's trading to $86.37, down 50 cents or 0.6 percent from Friday's close.
Govt gives 2-year extension to power companies to comply with SO2 emission norms
The deadline to comply with sulphur dioxide (SO2) emission norms for power companies has been extended by two more years, as per a government notification issued on September 6. For utilities operating within 10 km radius of National Capital Region or in cities having a million-plus population, the deadline has been pushed to 'December 31, 2024', the Ministry of Environment stated.
Power units being operated within 10 km radius of areas marked as "critically polluted" will have to comply with SO2 emission norms by December 31, 2025, it added. The utilities that do not fall in any of the above-mentioned categories will have to comply with the emission norms by 31st December, 2026, the notification further said.
Government, LIC may offer to sell 60% stake in IDBI Bank; EoI to be floated by October
The Life Insurance Corporation (LIC) of India and the central government are likely to offer a 60 percent stake for sale in IDBI Bank, CNBC-TV18 reported on September 6. The Expression of Interest (EoI) for the divestment process will be invited by October.
It was earlier reported that LIC and the government could sell up to 65 percent stake in IDBI Bank. The two currently own close to 94 percent in IDBI Bank, out of which the Centre owned 45.48 percent stake and LIC held 49.24 percent, as of June 30.
The government will be seeking due diligence from the Reserve Bank of India (RBI) at every step in the divestment process. There is no cap on promoter holding subject to submission of a plan to reduce stake in 15 years. However, the 26 percent voting rights cap stays for the divestment.
UK construction shrinks again as economy feels inflation heat-PMI
British construction companies suffered a second straight month of contraction in the face of deep uncertainty about the outlook for the inflation-hit economy, a survey showed on Tuesday.
The S&P Global/CIPS construction Purchasing Managers' Index (PMI) came in at 49.2 in August, edging up from 48.9 in July but staying below the 50.0 threshold denoting growth. Economists polled by Reuters had forecast a fall to 48.0.
Japan's household spending extends growth but inflation risks loom
Japan's household spending grew for a second straight month in July despite a resurgence in Covid-19 cases, but inflationary pressures from the yen's slump to a 24-year-low have cast doubt over a revival in consumption.
Household spending rose 3.4 percent in July from a year earlier, government data showed on Tuesday. The reading was lower than economists' median estimate for a 4.2 percent gain and followed 3.5 percent growth in June. Compared with a month earlier, spending decreased 1.4 percent in July, bigger than the forecast 0.6 percent fall.
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 1,144.53 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 632.97 crore on September 6, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Delta Corp remained in the NSE F&O ban list for September 7. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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