Dear
Trader…
Indian benchmark equity indices ended lower on Thursday,
reversing early gains, as weakness in heavyweight Reliance Industries weighed
on the market. The decline comes ahead of the release of crucial US non-farm
payroll and unemployment data, which could impact the Federal Reserve’s
upcoming interest rate decisions.
The 30-share BSE Sensex fell 151 points, or 0.18%, to settle
at 82,201, while the broader NSE Nifty future declined 11 points, or 0.04%, to
close at 25,236.
From the Sensex pack, Reliance Industries and Tata Motors
were the top laggards, each falling over 1%. Other decliners included Nestle
India, Bharti Airtel, Bajaj Finance, and L&T. On the upside, Titan, ITC,
Infosys, HCL Tech, and Tata Steel closed in the green.
Reliance Industries’ decline followed its announcement that
the board has approved a 1:1 bonus share issue, as revealed during the
company’s annual general meeting (AGM).
The broader domestic-focused small- and mid-cap indices also
rose, gaining about 1% and 0.4% respectively, both reaching all-time highs.
Investors are now looking ahead to key US
economic data, including jobless claims and the closely-watched nonfarm
payrolls report on Friday.
Weak US labour market data and recent comments
from a Federal Reserve official have strengthened the case for a significant
interest rate cut on September 18, with the likelihood of a 50-basis-point
reduction now at 45%.
The market breadth was skewed in the favour of the bulls.
About 2,249 stocks gained, 1,679 declined, and 110 remained unchanged on the
BSE.
Global
Market Check –
European stocks were flat on Thursday as gains in utilities
were offset by losses in miners, while investors awaited more economic data
from the euro zone and the US to gauge the outlook for global interest rates.
The pan-European STOXX 600 index was flat, with
miners down as prices of most metals fell on dim demand outlook following the
recent weak economic data globally, including in top consumer China.
Amid the fragile sentiment, Japan’s benchmark Nikkei slid
more than 1% to its lowest in three weeks, while stocks in China stood slightly
higher on the day.
Crude
Oil – Oil prices firmed up on Thursday, edging
up from multi-month lows on a possible delay to output increases by OPEC+
producers and a decline in US inventories, though the gains were capped by
persisting demand concerns. Brent crude for November rose 42 cents, or
0.6%, to $73.12 a barrel after touching its lowest since December on Wednesday.
US West Texas Intermediate crude for October was up 37 cents, or 0.5%, at
$69.57.
Nifty futures opened at 25350 points against the previous
close of 25247 and opened at a low 25225 points. Nifty Future closed with an
average movement of 126 points and a decline of around 11 points and closed 25236
points…!!
Meanwhile,
The benchmark indices continued to trade with
minor losses due to concern of a slowdown in the US & Chinese economy. The
market is now seeking new catalysts, particularly in how the Fed evaluates the
challenge of achieving a soft landing. Meanwhile, the broader market
outperformed, benefiting from positive service PMI data that suggests
supportive domestic economic conditions.
Rupee
near 84 mark – The Indian rupee ended at its
record closing low on Thursday but was little changed versus the previous
session, as the central bank’s intervention helped negate the incessant dollar
demand from importers. The rupee ended at 83.9825 to the US dollar
compared to 83.9650 in the previous session. Intraday volatility was muted,
similar to the activity in recent sessions, with the local currency trading in
a 2 paisa range.
At the start of intra-day trading, October gold opened at Rs.71481
fell from a high of Rs.72044 points to a low of Rs.71406 with a rise of 542
points, a trend of around Rs.72008 and December Silver opened at Rs.83602, fell
from a high of Rs.84969 points to a low of Rs.83550 with a rise of 1309 points,
a trend of around Rs.84874.
Technically, the
important key resistances are placed in Nifty future are at 25236 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 25272 – 25373 levels. Immediate support is placed at 25108 –
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
