Bulls remain confident of continued gains; influx of new investors

Despite lacklustre economic indicators, the market rally shows no signs of slowing down. Bulls remain confident, buoyed by expectations of continued gains today. A significant influx of new investors is entering the market, alongside robust flows into mutual funds. This momentum is driving the market forward, even as fundamental factors take a backseat.

The PMI index reveals a slowdown in factory output in August, slipping from 58.1 in July to 57.5.

Concerns are growing that extended rainfall this month may hamper agricultural production, delaying harvests and the sowing of rabi crops, potentially driving inflation higher.

The dollar index’s rise is once again weakening the rupee, which could easily slide to 84 if the dollar continues its upward trajectory.

In the derivatives market, the Gift Nifty closed at 25,367 on Monday night, before dipping slightly to 25,350 this morning. This indicates that the Indian market is likely to start today's session on a positive note.

European, US, Asian markets

European markets ended slightly in the red on Monday. The US market was closed yesterday for a holiday. US futures are down slightly today, with the Dow off by 0.11%, the S&P by 0.03%, and the Nasdaq by 0.12%. Yields on US 10-year bonds have dropped to 3.915%.

Asian markets are generally up today, with Japan’s Nikkei rising by 0.5%. Inflation in South Korea has hit a 42-month low, while Chinese markets have declined.

Indian market

The Indian market opened strong on Monday but couldn’t sustain the initial gains. However, the market still ended at a record high, closing up for the 13th consecutive session.

The Sensex began trading at a record 82,725.28 but closed significantly lower. The Nifty started at 25,333.60 before slipping to 25,235.50.

On Monday, the Sensex rose by 194.07 points (0.25%) to close at 82,559.84. The Nifty gained 42.80 points (0.17%) to finish at 25,278.70. The Bank Nifty climbed 0.17% (88.55 points) to close at 51,439.55.

The Mid-cap index fell by 0.23% to 59,152.65, while the Small-cap index declined by 0.33% to 19,244.30.

Sectors including metals, pharma, healthcare, media, auto, and realty closed in the red yesterday, while FMCG, IT, banking, financial services, and oil & gas sectors saw gains.

Foreign investors bought ₹1,735.46 crore worth of shares in the cash market on Monday. Domestic funds and institutions also purchased ₹356.37 crore worth of shares.

The market closed on a bullish note. If the Nifty sustains above 25,200, it could gradually move towards the 25,500-25,700 range.

Today, the Nifty index has support at 25,245 and 25,220, with resistance expected around 25,320 and 25,345.

The corporate scene

In Gujarat, state-owned companies GSPC, GSPL, and GSPC Energy will be merged into Gujarat Gas Limited. The gas transmission business of Gujarat Gas will be separated and listed under GSPL Transmission Limited. Shares of Gujarat Gas surged 13%.

Ola Electric’s shares continue to decline, with the price dropping 27% over the past seven days.

Jio Financial’s shares rose over 8% following the announcement of its entry into the housing loan segment. The stock might soon be included in the F&O category.

Gold and crude oil dip

Gold dipped again, closing at $2,500.10 per ounce on Monday, and further dropping to $2,492 this morning. The December holiday price has fallen to $2,527 per ounce.

In Kerala, gold prices fell by ₹200 per sovereign yesterday, bringing the price to ₹53,360.

Silver prices also declined, dropping to $28.34 per ounce.

The dollar index closed slightly lower at 101.65 yesterday but rose to 101.72 this morning.

The rupee weakened on Monday, with the dollar gaining six paise to close at ₹83.92.

Crude oil prices fluctuated again, driven by concerns over oil supply from Libya. Brent crude rose by 0.75% to close at $77.52, but fell to $76.22 this morning. WTI crude stands at $73.91, while UAE's Murban crude is priced at $76.82.

Cryptocurrencies continue to remain in the red, with Bitcoin hovering around $59,100 and Ether climbing to $2,535.

Industrial metals are also under pressure, with copper falling 1.70% to $9,057.17 per tonne, aluminium down 0.94% to $2,423.83 per tonne, and nickel, zinc, and tin dropping by 2.57%, 2.94%, and 3.47% respectively.

Market indices (September 2, Monday)

Sensex 30: 82,559.84 (+0.25%)
Nifty 50: 25,278.70 (+0.17%)
Bank Nifty: 51,439.55 (+0.17%)
Midcap 100: 59,152.65 (-0.23%)
Smallcap 100: 19,244.30 (-0.33%)

Dow Jones 30: 41,563.08 (+0.00%)
S&P 500: 5,648.40 (+0.00%)
Nasdaq: 17,113.43 (+0.00%)

Dollar (₹): 83.92 (+₹0.06)
Dollar Index: 101.65 (-0.05)
Gold (ounce): $2,500.10 (-$03.90)
Gold (sovereign): ₹53,360 (-₹200)
Crude (Brent): $77.52 (+$00.59)