Nifty is expected to open neutral due to consistent signals from Asian markets.

Asian Market Trends Keep Nifty's Opening Neutral

Written by: Supriya Kadu

Edited by: Omkar Devadkar

Last Updated: September 02, 2024

Summary: On Friday, institutional foreign buyers purchased shares valued at Rs 5,318.14 crore, while domestic buyers sold shares valued at Rs 3,198.07 crore.

Nifty futures trading on Gift Nifty suggest that the Indian equity benchmarks would open flat amid steady cues from other Asian markets. Gift Nifty's Nifty futures increased by 21 points, or 0.08 percent, to 25,411, signaling a flat opening for the Indian markets.

As investors got ready for a week packed with major reports, including a US jobs report that might affect the extent of an expected rate decrease later this month, Asian markets opened quietly on Monday.

Trading was light due to the US and Canadian markets being closed for the holiday, and new political uncertainty was brought about by the advances made by far-right parties in the German state elections.

Strong expenditure figures on Friday helped the US currency hold onto its gains, which decreased expectations of a more aggressive half-point rate drop from the Federal Reserve.

With a 33 percent possibility of a 50-basis-point drop, futures are completely pricing in a 25-basis-point cut on September 18. Additionally, the market anticipates cuts of 100 basis points by December and 120 basis points by 2025.

On Wednesday, the Bank of Canada is anticipated to announce another rate, with a 22% possibility of a 50 basis point decrease.

Analysts are forecasting a gain of 1,65,000 jobs and a slight drop in the unemployment rate to 4.2% in the US payrolls report due on Friday. A positive report is unlikely to stall the anticipated rate decrease, but a weak one would reinforce concerns about the health of the US economy and prompt a more aggressive round of rate cuts.

Following the release of the job figures, several Fed officials, notably Governor Christopher Waller and NY Fed President John Williams, are expected to speak and provide quick market reactions.

This week's noteworthy releases include the Fed's Beige Book, ADP employment statistics, JOLTS job openings, ISM surveys, trade numbers, and the Fed's Beige Book, causing investors to stay cautious as S&P 500 futures dropped 0.1% and Nasdaq futures lost 0.2%.

Domestic institutional investors sold shares worth Rs 3,198.07 crore on Friday, while foreign institutional investors purchased shares worth Rs 5,318.14 crore.

Stocks to focus on:

Reliance Industries: On Friday, the National Company Law Tribunal (NCLT) in Mumbai approved the media merger of Viacom18 and Star India after the Competition Commission of India's recent clearance.

Adani Energy Solutions: To purchase Khavda IVA Power Transmission, the business entered into a share purchase arrangement with REC Power Development and Consultancy.

Aditya Birla Capital: completed the upfront payment of Rs 252 crore to Samara Capital's Edme Services for the sale of a 50% interest in Aditya Birla Insurance Brokers.

Canara Bank: The bank may issue notes worth up to $500 million, and Moody's has given it a Baa3 rating with a stable outlook.

Life Insurance Corporation of India (LIC): The biggest insurer in the nation lowered its ownership of HDFC AMC from 4.9% to 2.8%.

Insecticides (India): With a record date of September 11, the board approved a share repurchase worth Rs 50 crore at Rs 1,000 per share.

Gujarat State Petronet: On Friday, the company revealed plans to reorganize its business and combine into two main companies, Gujarat Gas Ltd. and GSPL Transmission Ltd. The Government of India has granted Navratna status to Solar Energy Corporation, RailTel Corporation of India Ltd., NHPC Ltd., and SJVN Ltd.

Fortis Healthcare: The business will issue non-convertible debts (NCDs) to finance its acquisition of PE investors' remaining 31.52% share in Agilus Diagnostics.

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