Trends on SGX Nifty indicate a positive opening for the index in India with a 45-points gain. The Nifty futures were trading at 17,425 on the Singaporean Exchange around 7:30 AM.
Indian markets could open flat to mildly higher in line with mixed Asian markets today and despite a negative Dow Jones index in the US on Tuesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
Nifty snapped a three-day winning streak on September 7 after a volatile day in a narrow band. At close Nifty was down 0.09 percent or 16 points to 17,362.
"Nifty is expected to open positive at 17,410, up by 40 points. Nifty is in a strong bullish trend and we may see levels of 17,480 and 17,520 in the next few trading sessions. 17,300 and 17,250 are strong support for Nifty. Buying on dips with strict stop loss loss can be a good strategy in the current markets," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities, said "Benchmark Indices are expected to open on a positive note as suggested by trends on SGX Nifty. US stock indices mostly closed lower yesterday with solid gains seen in Apple, Facebook and other tech heavyweights’ companies.
"There can be some movement in EID Parry today as the company board has approved the setting up of a 120 KLPD Grain/Sugar Syrup/Molasses-based Distillery at the Company's Sankili unit in Andhra Pradesh. Overall Indian indices look on a positive territory with regular foreign capital inflows, strong domestic data. On the technical front, 17450 may act as immediate resistance for Nifty 50 followed by 17,500 while 17,100 remains a crucial support for Nifty 50."
Major US stock indexes closed mostly lower Tuesday, though the technology-heavy Nasdaq Composite climbed to another all-time high, as investors returned from a three-day holiday weekend unsure about the toll the delta variant of the coronavirus will take on the economic outlook.
Nifty had a larger high-low range on Tuesday compared to the previous day. However the close was not too different. As US markets were shut on Monday, global stocks are finding it difficult to find cues and hence direction. Post resumption of US markets on Tuesday, we may see higher volatility and close on close change on Wednesday. Advance decline ratio again dipped to much below 1:1 worrying investors and dampening volumes.
Economy shows growth
Revised gross domestic product (GDP) data by the Cabinet Office released on Wednesday showed the economy grew an annualised 1.9 percent in April-June, beating economists’ median forecast for a 1.6 percent gain and the initial estimate of a 1.3 percent expansion.
Gold retreated over 1.9 percent on Tuesday and is on course for its biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal. A selloff across bond markets has intensified in part due to a flood of debt sales. The 10-year U.S. Treasury yield trimmed an advance but remained above 1.36 percent.
Japan’s economy saw 1.9 percent annualized growth, higher than the initial estimate for a 1.3 percent rise, revised government data showed Wednesday. The revised GDP estimate was higher than economists median forecast in a Reuters poll for a 1.6 percent annualized growth.
Asian stocks trade mixed
Asian stocks were mixed Wednesday after a dip in US shares on concern that the delta coronavirus variant is slowing the economic recovery from the pandemic. Tokyo stocks are trading lower as investors seek to lock-in profit after the recent rallies seen in the market
Sebi introduces T+1 settlement cycle on optional basis
Capital markets regulator Sebi on Tuesday introduced T+1 settlement cycle for completion of share transactions on optional basis in a move to enhance market liquidity.
Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2). The regulator has decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycle for completion of share transactions, according to a circular.
The stock exchange may choose to offer T+1 settlement cycle on any of the scrips, after giving an advance notice of at least one month, regarding change in the settlement cycle, to all stakeholders, including the public at large, and also disseminating the same on its website.
After opting for T+1 settlement cycle for a scrip, the stock exchange will have to mandatorily continue with the same for a minimum period of six months.
Thereafter, in case the stock exchange intends to switch back to T+2 settlement cycle, it will do so by giving one-month advance notice to the market.
ICRA maintains stable outlook on banking
Domestic rating agency India Ratings on Tuesday maintained a stable outlook on the banking sector for 2021-22 while it expects an increase in stressed assets in retail and MSME segments by end-March. It estimates gross non-performing assets (GNPA) of the banking sector to be at 8.6 percent and stressed assets at 10.3 per cent for fiscal 2021-22.
"We have maintained a stable outlook on the overall banking sector for the rest of FY22, supported by the continuing systemic support that has helped manage the system-wide COVID-19 linked stress," the rating agency said in its mid-year banks outlook released on Tuesday.
Sebi on Tuesday tweaked the client level position limits for trading in cross-currency futures and options contracts. Position limit refers to the highest number of options or futures contracts an investor is allowed to hold on one underlying security.
Based on feedback received from stock exchanges and clearing corporations and upon a review of the same, it has been decided to revise the client level position limits, per stock exchange, Sebi said in a circular.
Chemspec Chemicals, Northern Arc Capital IPOs
Chemspec Chemicals and Northern Arc Capital have received capital markets regulator Sebi's approval to raise funds through initial share sales. The two companies had filed their preliminary IPO papers with the Securities and Exchange Board of India (Sebi) in July. Chemspec Chemicals and Northern Arc Capital obtained the regulator's observations on August 30 and September 3, respectively, an update with Sebi showed on Monday.
In Sebi parlance, the issuance of observations implies its go-ahead for the initial public offering (IPO). The Rs 700-crore IPO of Chemspec Chemicals is entirely an offer for sale by promoters, according to the draft red herring prospectus (DRHP).
Two stocks under F&O ban
Two stocks - Indiabulls Housing Finance and NALCO - are under the F&O ban 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.