Dear
Trader…
The 30-share BSE Sensex fell 398 points, or 0.49%, to close
at 81,523, while the broader NSE Nifty future dropped 144 points, or 0.58%, to settle at 24,938.
Meanwhile, the market capitalisation of all listed companies
on BSE declined by Rs 2.47 lakh crore to Rs 461.02 lakh crore.
The U.S. Labor Department’s consumer price index report for
August is due at 6:00 pm IST. Although the Federal Reserve has shifted its
attention to employment over inflation, the data could provide clues about
future policy moves.
While the Fed is widely anticipated to cut interest rates
next week, the size of the cut remains uncertain, especially after Friday’s
mixed labour report. Markets are currently pricing in a 65% chance of a 25
basis point rate cut, and a 35% chance for a 50 basis point cut, according to
the CME FedWatch tool.
From the Sensex pack, Tata Motors, ABI, NTPC, Adani Ports,
M&M, and L&T were among the top losers, falling 1.4% to 5.7%. In
contrast, Asian Paints, Bajaj Finance, HUL, Sun Pharma, Bajaj Finserv ended in
the red.
Auto stocks lost 1.28%, with Tata Motors dropping 5.7% to
become the top laggard from the Nifty 50 and auto indexes. UBS forecast a 21%
slump for the Indian automaker over the next 12 months, citing weakening
financials and high valuations.
The oil and gas sub-index shed nearly 1.9% after heightened
concerns over softening global demand sent Brent crude futures on Tuesday to
their lowest levels since December 2021.
Global
Market Check –
US stock futures faltered and the dollar was on the defensive
on Wednesday, while bond prices rallied, as markets reacted to a US
presidential debate in which Vice President Kamala Harris put Republican Donald
Trump on the defensive.
S&P 500 futures eased 0.36% and MSCI’s broadest index of
Asia-Pacific shares outside Japan dropped 0.3%. European shares were the
bright spot, with the pan-European STOXX 600 index edging up 0.07%, boosted by
the oil and gas sectors on concerns that Hurricane Francine would disrupt
output in the U.S.
Crude
Oil – Oil prices climbed over 1% on Wednesday,
paring some of the previous day’s losses, as concerns about Hurricane Francine
disrupting output in the United States, the world’s biggest producer,
outweighed worries about weak global demand.
Brent crude futures were up 84 cents, or 1.45%, to $70.66 a
barrel, while U.S. crude futures were at $67.31 a barrel, up $1.56 cents, or
1.2%.
Meanwhile,
The domestic market experienced a minor
consolidation in line with Asian peers due to correction of commodity prices
like crude, which has collapsed to $70. Market sentiment remained cautious due
to the slowdown in the Chinese economy.
Investors await the release of the US CPI and domestic
inflation data. It is anticipated that US inflation will have an uptick in
monthly data, while domestic inflation is expected to remain stable.
Additionally, this muted trend was influenced by the BoJ’s indication of a
potential rate hike if inflation remains elevated.
Rupee
vs Dollar – The Indian rupee ended little
changed on Wednesday ahead of a closely watched U.S. consumer inflation print
that is expected to influence expectations on Federal Reserve interest rate
cuts.
The rupee closed at 83.9775 against the U.S. dollar, barely
unchanged from its close of 83.9750 in the previous session.
At the start of intra-day trading, October gold opened at Rs.72001
fell from a high of Rs.72225 points to a low of Rs.72000 with a rise of 194
points, a trend of around Rs.72107 and December Silver opened at Rs.83941, fell
from a high of Rs.85050 points to a low of Rs.83941 with a rise of 1209 points,
a trend of around Rs.84890.
Technically, the
important key resistances are placed in Nifty future are at 24938 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24808 – 24737 levels. Immediate support is placed at 24979 –
25088 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
