The rupee begins trading at 82.82 per dollar, a slight improvement from Thursday’s 83.09 Rate
The S&P BSE Sensex exhibited volatility in its initial trading session, dipping to 66,185 before quickly rebounding to reach a peak of 66,418. It maintained an upward trajectory, surpassing 66,340 and gaining over 100 points. Meanwhile, the NSE Nifty retained its position above the 19,750 mark.
In specific figures, the Sensex was marginally down by 18.02 points, marking a 0.03 per cent decline, settling at 66,212.22. Similarly, the Nifty reported a slight decrease of 5.80 points or 0.03 per cent, reaching 19,736.50.
Oil prices on Friday saw an uptick, driven by worries over Russia’s potential ban on fuel exports, which could tighten the global oil supply, as per a Moneycontrol report. Brent futures edged up by 21 cents, or 0.2 per cent, reaching $93.51 a barrel, while U.S. West Texas Intermediate crude (WTI) futures increased by 23 cents, or 0.3 per cent, to $89.86.
Despite this rise, both benchmarks were poised for a slight weekly decline, following three consecutive weeks of more than 10 per cent gains, largely attributed to concerns about a tight global supply, as OPEC+ continued its production cuts, the report said.
Asian markets on Friday kicked off the day with a sluggish start, mirroring the overnight declines seen in US markets. Notably, Japan’s Nikkei experienced the most significant decline in the region, dropping by approximately 1 per cent, all in anticipation of the upcoming rate decision by the Bank of Japan. Meanwhile, the Kospi index was also exhibited weakness during early trading.
Markets in Taiwan slipped 0.4 per cent and Shanghai indices were trading flat.
As, Sensex and Nifty sustained their losses for the third consecutive session on Thursday, Foreign Institutional Investors (FIIs) maintained their selling trend. On the other hand, Domestic Institutional Investors (DIIs) shifted to becoming net buyers, injecting ₹1,158.14 crore into Indian stocks.
Wall Street experienced a significant downturn overnight, with the S&P 500 suffering its worst day since March, losing 1.6 per cent of its value, according to an Associated Press report. This sharp decline was triggered by expectations that US interest rates would remain elevated well into the next year. The US Federal Reserve’s indication of a smaller-than-expected interest rate cut for the next year compounded the market’s concerns.
The high-growth tech sector, including Amazon, Nvidia, and Tesla, bore the brunt of the losses, causing the Nasdaq composite to drop 1.8 per cent. The Dow Jones Industrial Average also declined by 370 points, or 1.1 per cent.
Background
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On Thursday, the two key equity benchmarks, Sensex and Nifty, closed lower for the third consecutive session as the US Federal Reserve signaling a prolonged period of higher interest rates weighed on investors. At the closing bell, the S&P BSE Sensex was down 570 points or 0.85 per cent at 66,230.24, while the Nifty declined 159.05 points or 0.8 per cent to 19,742.35.
As per the analysts, ongoing foreign institutional investor (FII) selling, Weekly F&O expiry, and elevated crude oil prices added to investors’ concerns. Global market weakness further dampened sentiments on Dalal Street.
According to technical analysts, going forward, sharp reversals like this with more gaps either going up or down, it suggest that the trend might continue for a while in the same direction, reported the Economic Times. As per the analysts, now, what traders should pay attention to is a support level at around 19,550 points. This level is calculated using a weekly 10-period EMA (Exponential Moving Average). While there might be a small upward bounce from this support level, experts believe that it could be an opportunity to sell rather than buy.
Additionally, the daily momentum indicator has given a negative crossover, which is considered a signal to sell. It aligns with the recent price movement, indicating a bearish trend, the report said. Nifty is currently at a support level, and while there might be a temporary bounce, it’s uncertain whether this is a good time to buy.
Meanwhile, data from the Ministry of Labour and Employment on Thursday showed that Retail inflation for farm workers and rural labourers slightly declined in August, to 7.37 per cent and 7.12 per cent, respectively, compared to July. Food inflation for farm workers and rural labourers stood at 8.89 per cent and 8.64 per cent in August, compared to 8.88 per cent and 8.63 per cent in July 2023.
“The major contribution towards the rise all-India index came from the food group to the extent of 8.38 points and 7.69 points, respectively mainly due to increase in prices of rice, wheat atta, pulses, milk, meat-goat, sugar, gur, chillies-dry, turmeric, garlic, onion, mixed spices, etc,” the ministry said.
IPO Update
Zaggle Prepaid Ocean Services and Samhi Hotels are set to make their stock market debuts sooner than expected, on September 22, following a T+3 timeline, reported Moneycontrol. This shift indicates that these companies are adapting to the new IPO listing timeline introduced by the Securities and Exchange Board of India (SEBI). Originally, according to the information provided in the red herring prospectus, Zaggle Prepaid and Samhi Hotels were slated to list their shares on September 27.
In addition, the Vaibhav Jewellers IPO, which is the initial public offering of Manoj Vaibhav Gems N Jewellers, based in Andhra Pradesh, will open for subscription on Friday, September 22.