Trends on SGX Nifty indicate a cautious opening for the index in India with a 17-points gain. The Nifty futures were trading at 17,408 on the Singaporean Exchange around 07:30 AM.
BSE Sensex surged 400 points to 58,658, a new record high level in pre-opening session on Wednesday
Indian markets could open flat to mildly higher, despite largely negative Asian markets today and negative US markets on Tuesday, said Deepak Jasani, Head-Retail, HDFC Securities.
"Nifty is expected to open positive at 17,420, up by 30 points. 17,420 - 17,450 has been acting as a strong resistance zone for Nifty, a closing above this zone may take Nifty to 17,550-17,600 levels. 17,250-17,300 range will continue acting as strong support zone for Nifty. Traders can consider buy on dips with strict stop-loss as a strategy to trade current markets," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty closed nominally higher on Sept ember14 facing resistance from the earlier high formed about 4 days ago. At close the Nifty was up 0.14 percent or 24.7 points at 17,380.
Nifty closed at its all time high though on an intra day basis it faced resistance from the previous high formed 4 days back. Advance decline ratio has improved to much above 1:1, bringing some positivity amongst traders. A convincing breach of 17,437 could lead to acceleration in the upmove. On the other hand 17,254 could act as a support.
Wall Street loses ground on economic uncertainties
Wall Street lost ground on Tuesday as economic uncertainties and the increasing likelihood of a corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation.
The Dow Jones Industrial Average fell 292.06 points, or 0.84 percent, to 34,577.57; the S&P 500 lost 25.68 points, or 0.57 percent, at 4,443.05; and the Nasdaq Composite dropped 67.82 points, or 0.45 percent, to 15,037.76
US stocks ended lower Tuesday, giving up early gains inspired by a softer-than-expected August inflation reading, as investors fretted that underlying price pressures may still prove persistent.
Investors digested fresh inflation data ahead of the Federal Reserve’s policy meeting next week, with stocks falling after initially moving higher on the US. government report Tuesday that the rise in the cost of living slowed in August. The increasing likelihood of a corporate tax rate hike dampened investor sentiment.
The US consumer-price index rose 0.3 percent in August, while the core reading, which excludes volatile food and energy prices, was up just 0.1 percent. The CPI increased 5.3 percent year over year, compared to a rise of 5.5 percent for the year in July.
The markets saw an initial “relief rally” on the “little lighter than expected” read on inflation, but the latest CPI data probably won’t change the Fed’s tapering timeline.
China's industrial output up
China’s industrial output grew 5.3 percent in August from the same period a year ago (Vs 6.4 percent in July and 5.8 percent expected). Retail sales rose 2.5 percent from a year earlier, the slowest pace since August 2020. Analysts in the poll had expected them to grow 7.0 percentin August after rising 8.5 percent in July.
Asian stocks decline
Shares in Asia-Pacific were lower in Wednesday morning trade following losses overnight on Wall Street, with investors awaiting the release of Chinese economic data.
The Nikkei 225 in Japan declined 0.81 percent while the Topix index slipped 1.17 percent. South Korea’s Kospi sat below the flatline.
Asia Pacific stocks were down on Wednesday morning as investors digested weaker-than-expected Chinese data. They also await the impact of lower-than-expected US inflation figures on the US Federal Reserve’s timeline to begin asset tapering.
India's exports up
India's exports rose by 45.76 percent to $33.28 billion in August, as against $22.83 billion in the same month last year, according to commerce ministry data released on Tuesday. Imports during the month increased by 51.72 percent to $47.09 billion, the data showed.
Trade deficit widens in August
Trade deficit in August widened to $13.81 billion as against $8.2 billion in the same month last year. Cumulative value of exports for the period April-August 2021 expanded by 67.33 percent to $164.10 billion, compared to $98.06 billion in the year-ago period.
Sebi proposal to tighten timeline of settlement mechanism
Markets regulator Sebi on Tuesday proposed to tighten the timeline of settlement mechanism, whereby it suggested fixing the total timeframe for filing the application at 60 days after receipt of the notice to show cause.
The total timeframe for filing the application for settlement may be fixed at 60 days of the date of receipt of the show-cause notice or the supplementary notice, whichever is later, Sebi said in a consultation paper.
Oil prices hit six-week high
Oil prices hit a six-week high on Tuesday as Hurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages to Texas and Louisiana, and as the International Energy Agency forecast a big demand rebound for the rest of the year.
Brent crude was up 55 cents, or 0.8 percent, at $74.06 a barrel by 1334 GMT after hitting a session high of $74.28. US West Texas Intermediate (WTI) crude climbed 51 cents, or 0.7 percent, to $70.96 after touching a high of $71.22.
Wellness Forever to file for IPO
Wellness Forever, an omni-channel retail pharmacy chain backed by Adar Poonawalla, will file draft documents with the capital markets regulator by the end of this month to raise Rs 1,500-1,600 crore through an initial public offering, people familiar with the plan told Moneycontrol.
The IPO will consist of a primary issue and an offer for sale of shares by existing investors, the people said. Wellness Forever appointed IIFL Securities, Ambit Private and DAM Capital Advisors as the investment bankers for the proposed share sale.
Eight stocks under F&O ban
Eight stocks – Canara Bank, Escorts, Exide Industries, Vodafone Idea, IRCTC, LIC Housing Finance, NALCO and Sun TV Network – are under the F&O ban today.
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