Indian benchmark indices, Sensex and Nifty 50, are poised to open on a positive note on September 16, bolstered by favorable signals from GIFT Nifty, which was trading near 25,428.50 earlier this morning.
Market Overview
On September 13, Indian markets closed relatively unchanged as investors adopted a cautious approach ahead of the Bank of Japan’s upcoming policy decision and amid uncertainty over the Federal Reserve’s anticipated rate cut.
Sectoral Performance
The Nifty Realty index led the gains, rising by 1.7%, followed by the Nifty Media index, which also increased by 1.7%. The Nifty PSU Bank index saw a rise of 1.2%, while both the Nifty Metal and Consumer Durables indices appreciated by 0.9%. Conversely, the Nifty FMCG index was the biggest decliner, falling by 0.7%, with the Nifty Healthcare index trailing slightly behind with a 0.2% decrease.
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Global Financial Markets
- GIFT Nifty: The GIFT Nifty is showing an upward trend, signaling a positive start for the Indian market. As of 07:00 am IST, Nifty futures were trading at 25,428.50.
- Asian Equities: Asian stocks began the week with caution, reflecting uncertainties regarding the U.S. interest rate easing cycle. There is speculation about the extent of the rate cut, with markets divided on the likelihood of a significant reduction.
- US Equities: Wall Street’s major indexes closed higher on Friday, driven by optimism about a potential larger interest rate cut by the Federal Reserve. The Dow Jones Industrial Average rose by 297.01 points, or 0.72%, to 41,393.78. The S&P 500 increased by 30.26 points, or 0.54%, to 5,626.02, and the Nasdaq Composite gained 114.30 points, or 0.65%, reaching 17,683.98.
- US Bond Yields: The US 10-year Treasury yield dropped by 62 basis points to 3.65%, while the 2-year bond yield decreased by 150 basis points to 3.58% in early trade on Thursday.
- Dollar Index: The dollar index remained stable at approximately 101 against major currencies in early Monday trade.
- Asian Currencies: Most Asian currencies appreciated against the US dollar in early trade on Monday.
- Gold: Gold prices saw a marginal increase, trading at $2,582, while silver prices rose by 0.5% to $30.89. Here is the recent performance:
- Gold: +0.17% (Change from previous close), +3.15% (Month-to-Date), +25.10% (Year-to-Date)
- Silver: +0.54% (Change from previous close), +7.06% (Month-to-Date), +29.80% (Year-to-Date)
- Crude Oil: Oil prices edged up in early trade, influenced by expectations of a U.S. interest rate cut, although gains were tempered by resumption of U.S. supply following Hurricane Francine and weaker data from China. Performance details:
- US West Texas Intermediate: +0.28% (Change from previous close), -6.39% (Month-to-Date), -3.91% (Year-to-Date)
- Brent Crude: +0.13% (Change from previous close), -9.01% (Month-to-Date), -6.93% (Year-to-Date)
- LME Commodities: Most LME commodities experienced gains except for nickel, which declined. Notable increases include:
- Aluminium: +2.30% (Change from previous close), +0.98% (Month-to-Date), +3.65% (Year-to-Date)
- Copper: +1.00% (Change from previous close), +0.79% (Month-to-Date), +8.76% (Year-to-Date)
- Nickel: -1.15% (Change from previous close), -4.90% (Month-to-Date), -3.97% (Year-to-Date)
- Lead: +0.81% (Change from previous close), -0.46% (Month-to-Date), -1.21% (Year-to-Date)
- Zinc: +1.70% (Change from previous close), +0.26% (Month-to-Date), +9.27% (Year-to-Date)
Fund Flow Action
Foreign Institutional Investors (FIIs) purchased equities worth ₹2,364 crore on September 13, while Domestic Institutional Investors (DIIs) acquired equities worth ₹2,532 crore on the same day.
As global markets react to various economic indicators, Indian investors and traders will be closely watching these developments to gauge potential impacts on domestic markets.
