The market is expected to open in the green as trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 58 points.
The BSE Sensex rose 54 points to 59,085 yesterday, while the Nifty50 climbed 27 points to 17,605 and formed a bullish candle on the daily charts by defending 17,350 as well as 17,500 levels. The broader markets also participated in recovery and outperformed frontliners. The Nifty Midcap 100 and Smallcap 100 indices have gained 0.7 percent and 0.8 percent respectively.
As per the pivot charts, the key support level for the Nifty is placed at 17,528, followed by 17,451. If the index moves up, the key resistance levels to watch out for are 17,653 and 17,700.
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 ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the US Federal Reserve's Jackson Hole conference this week. Boosting the tech-heavy Nasdaq, Intuit Inc rallied almost 4 percent after the accounting software maker forecast upbeat fiscal 2023 revenue.
The S&P 500 climbed 0.29% to end the session at 4,140.77 points. The Nasdaq gained 0.41% to 12,431.53 points, while Dow Jones Industrial Average rose 0.18% to 32,969.23 points.
Asian markets
Markets in the Asia-Pacific traded higher ahead of the Jackson Hole symposium kicking off stateside. Japan’s Nikkei 225 was 0.34% higher while the Topix was up 0.22%. In South Korea, the Kospi rose 0.56% and the Kosdaq was up 0.49%. Australia’s S&P/ASX was also up by 0.3%.
SGX Nifty
Trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 58 points. The Nifty futures were trading around 17,674 levels on the Singaporean exchange.
Oil prices rise on possible OPEC supply cuts
Oil prices rose in early Asian trade on Wednesday after Saudi Arabia suggested the Organization of the Petroleum Exporting Countries could consider cutting output, though bearish economic signals from central bankers and falling equities weighed.
US crude futures rose 34 cents to $95.23 a barrel by 0016 GMT, while Brent crude futures rose 51 cents or $101.73 a barrel.
Corporate bond outstanding soars
Illiquidity in secondary corporate debt market is a global issue and so focus should be on further deepening the primary market that has grown nearly four-fold in a decade to Rs 40 lakh crore, a Reserve Bank of India (RBI) official said. Addressing a Bombay Chamber of Commerce & Industry event on Wednesday, deputy governor Rabi Sankar said concerted efforts by regulators and government have seen corporate bond outstanding cross Rs 40 lakh crore as of March 2022 from Rs 10.4 lakh crore in March 2012, while annual issuances rose to Rs 6 lakh crore from under Rs 4 lakh crore during this period.
During the same period, the secondary market volume spiked from Rs 4.4 lakh crore to Rs 14 lakh crore.
New overseas investment rules to aid banks’ loan recovery, stop asset theft: Bankers
Bankers have given thumbs up to the government's new investment rules that make it difficult to move money overseas for those having NPA (non-performing asset) accounts and wilful defaulters, saying it will stop siphoning off of assets and aid loan recovery by banks.
“While this could impede the overseas investment strategy of a person who has defaulted or is under scrutiny, it gives power to banks to either give or deny a no-objection certificate (NOC) only after conducting appropriate due diligence,” said a banker at a stressed asset vertical of a state-run bank, requesting anonymity.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 23.19 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 322.34 crore on August 24, as per provisional data available on the NSE.
Dollar, yields rise ahead of speech by Fed's Powell
The dollar rose and Treasury yields jumped on Wednesday ahead of a speech in two days by Federal Reserve Chair Jerome Powell that may affirm the US central bank's aggressive policy to tame inflation or signal a "pivot" to subdued interest rate hikes.
Yields on both German and US benchmark 10-year notes rose to eight-week highs. British short-dated government bond yields hit 14-year highs. Soaring energy prices in Europe raised fears of more inflation in Germany and Britain. The yield on 10-year US Treasuries rose further above 3 percent, hitting 3.126 percent, suggesting for some the rebound in stocks may be short-lived. The German 10-year bund rose to 1.388 percent, and two-year UK gilts hit 2.955 percent.
Gold steadies as dollar stalls; focus on Jackson Hole event
Gold steadied on Wednesday as the dollar gave up some gains from earlier in the session, while investors await the Jackson Hole central bankers’ event for clues on rate hikes. Spot gold was up 0.24% at $1,751.85 per ounce by 4:00 p.m. ET.
Stocks under F&O ban on NSE
The National Stock Exchange has added RBL Bank to its F&O ban list for August 25. 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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