Bulls expect gains today as foreign cues spark optimism

Foreign cues are expected to lift the Indian markets today from their recent slump, with investors hopeful for a strong start.

In the US, inflation cooled more than anticipated, boosting global markets. Major US indices rebounded sharply, while Asian markets also opened strong.

India’s retail inflation data for August is expected later today, with estimates below 3.5%. US inflation data will be released tonight.

In derivatives, the Gift Nifty closed at 25,080 on Wednesday night and rose to 25,090 this morning, indicating a potential rise in Indian markets today.

US, European, Asian markets

European markets were mixed on Wednesday, while US markets first dipped and then recovered, with the Dow Jones closing slightly higher and other indices posting significant gains.

August retail inflation in the US dropped to 2.5%, down from 2.9% in July, the lowest in over three years. Core inflation, excluding fuel and food prices, stood at 3.2%. Average wages increased by 1.3% monthly. Despite lower inflation, markets initially dipped on the belief that there was no chance of a 0.50% rate cut. However, optimism shifted later, with markets now expecting a 0.25% rate cut from the Fed next Wednesday.

Nvidia’s stock surged 8.15%, closing at $116.91, with other tech stocks like Apple also showing strong gains.

On Wednesday, the Dow Jones rose 124.75 points (0.31%) to close at 40,861.71, the S&P 500 gained 58.61 points (1.07%) to finish at 5554.13, and the Nasdaq jumped 369.65 points (2.17%) to close at 17,395.53.

US futures are slightly down today, as investors await inflation data. Dow, Nasdaq, and S&P futures are down by 0.04%, 0.08%, and 0.05%, respectively.

The yield on US 10-year Treasury bonds has fallen to 3.66%.

Asian markets have started trading with significant gains. Japan’s Nikkei opened 3% higher.

Indian markets

Indian markets, after a two-day rally, dipped yesterday, losing the previous gains. Nifty fluctuated between 24,885 and 25,114, while Sensex rose to 82,135 but later fell to 81,423.

In the NSE, 1021 stocks rose, while 1729 declined. BSE recorded 1509 gainers and 2469 losers.

On Wednesday, Sensex dropped 398.13 points (0.49%) to close at 81,523.16, while the Nifty lost 122.65 points (0.49%) to finish at 24,918.45. Bank Nifty fell by 0.51% (262.30 points) to 51,010.00.

The midcap index closed 0.17% lower at 58,938.05, while the smallcap index declined 0.81% to 19,161.85.

Foreign investors bought ₹1,755 crore worth of stocks in the cash market on Wednesday, while domestic funds and institutions purchased ₹230.90 crore worth of shares.

Despite the dip, US inflation data and rising Asian markets suggest a positive outlook for today.

The Nifty has support at 24,910 and 24,790, with resistance expected at 25,150 and 25,255.

Corporate news 

Tata Motors shares plunged 5.73% and fell below ₹1,000 after the UBS issued a sell recommendation. the UBS noted that Jaguar Land Rover’s profits would likely fall due to declining sales in China, potentially causing Tata Motors' stock to drop by 20%.

Suzlon Energy climbed 5% yesterday, with its stock having risen 113% this year.

Goa Carbon Limited shares rose by up to 5% after restarting operations at its Goa plant.

Vodafone Idea shares fell 2.5%, with a 17.6% decline over the past month. Despite promoter Kumar Mangalam Birla purchasing 1.8 crore shares on Tuesday, the stock failed to rise. Banks have not responded favourably to the company’s new loan application.

Crude oil, gold

Gold prices fluctuated yesterday, declining after US inflation data and rising slightly this morning. Gold closed at $2511.50 an ounce yesterday and is trading at $2515 today. December gold futures fell to $2541 an ounce.

In Kerala, gold prices rose by ₹280 on Wednesday, reaching ₹53,720 per sovereign.

Silver prices climbed to $28.67 an ounce.

The dollar index closed at 101.68 on Wednesday and rose to 101.79 this morning.

A stronger dollar could weaken the rupee, which initially gained on Wednesday morning but weakened later in the day. The rupee closed flat at ₹83.98 to the dollar. If the dollar index rises further, the rupee may slip to ₹84.

Crude oil prices rose slightly, with Brent closing at $70.61 on Wednesday and trading at $70.84 this morning. WTI is at $67.47, and UAE’s Murban crude is priced at $71.24.

Cryptocurrencies rose slightly, with Bitcoin reaching $57,800 and Ether trading at $2365.

Industrial metals also saw gains, with copper rising 0.81% to $9007.10 per tonne. Aluminium climbed 1.25% to $2370.50, nickel 2.38%, zinc 2.78%, tin 1.18%, and lead 2.49%.

Market indicators (September 11, Wednesday)

• Sensex 30: 81,523.16 (-0.49%)
• Nifty 50: 24,918.45 (-0.49%)
• Bank Nifty: 51,010.00 (-0.51%)
• Midcap 100: 58,938.05 (-0.17%)
• Smallcap 100: 19,161.85 (-0.81%)
• Dow Jones 30: 40,861.71 (+0.31%)
• S&P 500: 5554.13 (+1.07%)
• Nasdaq: 17,395.53 (+2.17%)
• Dollar ($): ₹83.98 (+₹0.00)
• Dollar Index: 101.68 (+0.05)
• Gold (ounce): $2511.50 (-$5.70)
• Gold (sovereign): ₹53,720 (+₹280)
• Crude (Brent) oil: $70.61 (+$1.42)