The Indian stock market is expected to open flat as trends on SGX Nifty indicate a muted opening for the index in India with a 9-points fall.
On September 2, the BSE Sensex climbed 514.33 points to 57,852.54, while the Nifty50 rose 157.90 points to 17,234.20 and formed bullish candle on the daily charts as the closing was higher than opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 17,114.1, followed by 16,994. If the index moves up, the key resistance levels to watch out for are 17,299.9 and 17,365.6.
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
The S&P 500 and Nasdaq eked out record finishes on Thursday, while the Dow also posted a modest gain, as higher commodity prices helped energy names recover ground and the latest jobs data left investors unfazed about existing positions.
The Dow Jones Industrial Average rose 131.29 points, or 0.37%, to 35,443.82, the S&P 500 gained 12.86 points, or 0.28%, to 4,536.95 and the Nasdaq Composite added 21.80 points, or 0.14%, to 15,331.18.
Asian Markets
Asian Indices were trading mixed with Kospi and Taiwan Weighted up 0.5 percent each, while Hang Send and Straits Times trading in the red.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 9-points fall. The Nifty futures were trading at 17,250.50 on the Singaporean Exchange around 07:25 hours IST.
August exports surge 45% YoY, led by strong global orders
Owing to an uptick in global orders, India's merchandise exports shot up in August, rising by a major 45.17 percent as compared to August, 2020. Impressively, exports also rose by 27.5 percent as compared to August, 2019, before the pandemic struck.
In August, imports saw an equally large rise, going up by 51.5 percent to $47 billion. Similar to exports, as the low base wears off, the jumps in import growth have moderated. Imports had risen by 62.9 percent in July, 98.3 percent in June, 73.6 percent in May and 163 percent in April.
Data released by the Commerce and Industry Ministry on September 2 showed outbound trade rose to $33.14 billion in August, up from $22.83 billion in August, 2020.
US trade deficit shrinks in July as imports fall
The US trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services.
The Commerce Department said on Thursday that the trade gap fell 4.3% to USD 70.1 billion. Data for June was revised to show the deficit at USD 73.2 billion instead of USD 75.7 billion as previously reported.
Oil rises on economic recovery hopes, weaker dollar
Oil prices rose more than USD 1 a barrel on Thursday, rebounding on optimism about the pace of global economic growth despite the coronavirus pandemic, as well as on a sharp decline in U.S. crude inventories.
US weekly jobless claims drop; layoffs tumble to 24-year low
The number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August, suggesting the labor market was charging ahead even as new COVID-19 infections surge.
The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy's health, also showed the number of people on state unemployment rolls tumbling to a 17-month low in the third week of August.
Declining layoffs should help to ease concerns about the economy even if August's closely watched employment report on Friday shows a slowdown nonfarm payrolls growth.
Initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 340,000 for the week ended Aug. 28, the lowest level since mid-March 2020 when mandatory closures of nonessential businesses were enforced to slow the first wave of coronavirus cases.
China to launch Beijing stock market, President Xi Jinping says
China will set up a new stock exchange in the capital Beijing, President Xi Jinping said Thursday, as the country tries to lure domestic companies into listing at home instead of overseas.
The nation currently has two main exchanges in Shanghai and Shenzhen.
Xi said in a speech at a trade fair that the new stock exchange would support the development of small and medium-sized enterprises, but did not offer further details.
Dollar near one-month low as payrolls test looms:
The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 348.52 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 381.70 crore in the Indian equity market on September 2, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - Indiabulls Housing Finance - is under the F&O ban for September 3. 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 & other agencies
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