Morning Update: Sensex gains, closed at 65,820 level: While Nifty at 19,589 level
Indian Market
FII AND DII
| FII Sold | 1,725.11 Cr |
| DII Purchased | 1,077.86 Cr |
Indian Market News
- Sensex and Nifty trade flat; Cipla, SBI Life, and ONGC among the top gainers.
- Wall Street falls as Treasury yields climb, while rising oil prices support the energy sector.
- The GIFT Nifty indicates a flat opening for India’s broader market.
- Asian markets are trading uneven; the Nikkei and the Straits Times are up, while the Hang Seng is down.
- China’s exports and imports are likely to have contracted more slowly in August, according to a Reuters poll.
- The dollar is strengthening due to concerns about global growth, while the yen is under pressure.
- Australia’s economy expanded somewhat in the second quarter, easing fears of a recession.
- Jupiter Life Line Hospitals raises Rs 260.72 crore through an anchor book ahead of its IPO.
- Oil prices rise as Saudi Arabia and Russia extend output cuts.
| SENSEX | 39.84 | +0.06% | 65,820.10 |
| NIFTY50 | 14.30 | +0.07% | 19,589.20 |
| BANK NIFTY | -39.00 | -0.09% | 44,493.15 |
Global Market Update
GIFT Nifty
The GIFT Nifty suggests a somewhat negative opening for the broader market with a loss of 7 points. GIFT Nifty futures remained at 19,667 points after touching a high of 19,679 points.
US Markets
S&P 500 futures traded near flat on Tuesday night as Wall Street looked beyond the dismal session that marked the start of the holiday-shortened trading week. Futures connected to the broad index and Dow Jones Industrial Average were slightly changed. Nasdaq 100 futures fell 0.1 percent.
The developments follow a negative session on Wall Street, which was the start of the holiday-shortened trading week. The Dow finished close to 200 points, or almost 0.6 percent, lower, while the S&P 500 and Nasdaq Composite lost 0.4 percent and nearly 0.1 percent.
Part of the downward pressure came from oil prices, which increased after Saudi Arabia and Russia extended their voluntary supply restrictions. West Texas Intermediate futures surged more than 1 percent and briefly broke $87 per barrel, putting the price at its highest level since November.
Treasury yields also increased throughout the session. Oil prices and yields growing can create concerns about how the Federal Reserve will manage interest rates going forward, according to Bill Merz, head of capital market research at US Bank Wealth Management.
“Rising oil prices really feeds into the story about inflation,” he said. “And the story about inflation feeds into bond yields and a story about the Fed and what the Fed is going to do.”
European Markets
European stock markets closed lower Tuesday, as a lift from Chinese stimulus measures faded. The Stoxx 600 index closed 0.2 percent down. Chemical stocks were down roughly 1.2 percent, as oil and gas climbed 1.2 percent.
It comes as stock markets closed flat on Monday, losing momentum throughout the session after some of China’s top banks cut interest rates on a range of deposits. Asia-Pacific stocks were lower on Tuesday as traders reviewed dismal Chinese services data, while U.S. markets dipped after Labor Day.
Danish drug maker Novo Nordisk closed 1% higher, after soaring 1.7 percent in mid-afternoon trade as it extended its lead as Europe’s new most valuable firm. It raced past luxury goods giant LVMH after the Monday close after temporarily taking the top spot last week, as it debuted its weight reduction medicine Wegovy in the U.K. Novo Nordisk closed with a market capitalization of roughly $428.3 billion, including unlisted shares, ahead of LVMH’s $417.86 billon, according to LSEG statistics.
Asian Markets
S&P 500 futures are near flat Tuesday night as Wall Street looked beyond the dismal session that marked the start of the holiday-shortened trading week. Futures connected to the broad index and Dow Jones Industrial Average were slightly changed. Nasdaq 100 futures fell 0.1 percent.
The developments follow a negative session on Wall Street, which was the start of the holiday-shortened trading week. The Dow finished close to 200 points, or almost 0.6 percent, lower, while the S&P 500 and Nasdaq Composite lost 0.4 percent and nearly 0.1 percent, respectively.
Part of the downward pressure came from oil prices, which surged after Saudi Arabia and Russia extended their voluntary supply restrictions. West Texas Intermediate futures surged more than 1% and briefly broke $87 per barrel, putting the price at its highest level since November.
Treasury yields also increased throughout the session. Oil prices and yields growing can create concerns about how the Federal Reserve will manage interest rates going forward, according to Bill Merz, head of capital market research at US Bank Wealth Management.
“Rising oil prices really feeds into the story about inflation,” he said. “And the story about inflation feeds into bond yields and a story about the Fed and what the Fed is going to do.”
Investors will monitor Wednesday for economic data in the morning on the U.S. trade deficit and services industry. A new beige book, which highlights economic activities, will be released in the afternoon.
Oil Prices
Oil prices soared 2 percent on Tuesday to their highest since November, after Saudi Arabia and Russia extended their voluntary production curbs by three months to the end of this year, alarming investors about probable shortages during peak winter demand.
Brent oil futures increased by $2.08, or nearly 2.3%, to $91.08 a barrel, eclipsing the $91 threshold for the first time since late November. Meanwhile, US. West Texas Intermediate crude October futures jumped $2.42, or roughly 2.8 percent, to $87.97 a barrel, also a 10-month record. Investors had expecting Saudi Arabia and Russia to extend voluntary cuts through October, but the three-month extension was unexpected.
“It would indicate they’re trying to double down and capitalize on the recent price changes. Put a significant buffer in place for when the cuts cease,” OANDA analyst Craig Erlam told Reuters.
Both countries said they would review the supply cuts regularly, and potentially change them depending on market conditions.
“With the production cut continued, we estimate a market deficit of more than 1.5 million bpd in 4Q23. So, with oil inventories projected to shrink further over the coming months, we estimate Brent to rise to $95/bbl (barrel) by year-end,” UBS analyst Giovanni Staunovo wrote in a note to investors.
Dollar Index
The Dollar index traded 0.46 percent higher in futures at 104.72, but the value of one dollar held near Rs 83.05.
Gold Prices
Gold sank to a one-week low on Tuesday on rising bond yields and as investors opted for the U.S. currency to hedge against global growth concerns. Spot gold lost 0.6 percent to $1,926.49 per ounce. US gold futures slipped 0.8 percent to $1,952.00. Jitters about global economy, notably in China and the Euro zone, drove rival safe-haven dollar to achieve multi-month highs versus a basket of currencies, making gold more expensive for international purchasers.
“Global bond yields are up sharply across the board and it appears that there are concerns that global growth concerns could get even uglier and that’s sending everyone back to the dollar,” said Edward Moya, senior market analyst at OANDA.
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