Markets in buoyant mood, poised to continue today

Despite selling pressure, the Indian markets surged on Wednesday and are poised to continue their upward momentum today. The rise in U.S. and European markets, along with positive openings in Asian markets, serve as encouraging factors. There is now a near certainty that the U.S. Federal Reserve will begin cutting interest rates in September, offering relief to the markets. Additionally, crude oil prices have fallen below $76 per barrel, further supporting the market. However, selling pressure is increasing at higher levels.

In the derivatives market, GIFT Nifty closed at 24,896 on Wednesday night, indicating a positive start for the Indian markets today.

Foreign markets 

European markets closed over half a percent higher on Wednesday, while U.S. markets ended with gains after a day of fluctuations. The S&P 500 closed just 46 points below its record high, and the Dow Jones needs to gain 486 points to reach a new record. Economic data released later showed that the market's initial August decline due to recession fears was unwarranted, leading to a recovery.

Yesterday’s US employment data and the minutes from the last Fed meeting have dismissed recession fears. The debate now centres on whether the September rate cut will be 0.25% or 0.50%. The market is eagerly awaiting Fed Chairman Jerome Powell’s speech at tomorrow’s Jackson Hole summit for clarity.

On Wednesday, the Dow Jones index rose by 55.52 points (0.14%) to close at 40,890.49, the S&P 500 gained 23.73 points (0.42%) to end at 5620.85, and the Nasdaq climbed 102.05 points (0.57%) to close at 17,918.99.

U.S. futures are in the green today, with the Dow up 0.03%, the S&P 0.05%, and the Nasdaq 0.06%. Asian markets, which ended in strong gains in recent days, are also showing an upward trend today.

Indian markets 

The Indian market opened lower on Wednesday but later fluctuated, with indices climbing in the last hour to close with gains. At one point, Bank Nifty, which had fallen by 1.5%, reduced its loss to 0.23%. Real estate stocks saw significant declines, while consumer durables and FMCG sectors performed well.

On Wednesday, the Sensex rose by 102.44 points (0.13%) to close at 80,905.30, and the Nifty gained 71.35 points (0.29%) to end at 24,770.20. Bank Nifty fell by 0.23% (117.60 points) to close at 50,685.55.

The Midcap index rose by 0.34% to close at 58,444.05, and the Smallcap index surged by 1.21% to end at 19,067.35.

Foreign investors sold shares worth ₹799.74 crore in the cash market on Wednesday, while domestic funds and institutions bought shares worth ₹3,097.45 crore.

If the Nifty sustains above 24,700, it could test the 24,850-24,950 range. The Nifty has support at 24,690 and 24,655, with resistance expected around 24,790 and 24,820.

Corporate news

Shipbuilding stocks, which declined earlier, saw good gains yesterday. Cochin Shipyard rose by 1.91%, Garden Reach by 1.29%, and Mazagon Dock by 5.22%. These companies are still down 30% from their record highs.

Nykaa shares surged 19% yesterday, with a closing gain of 10%. The stock has risen 24% this year and is up 61% over the past 12 months. However, it is considered overbought.

PNB Housing Finance shares saw movement after General Atlantic sold its stake, and the Singapore government acquired 1.4% of the company. PNB Housing shares rose by 10%.

Reliance is reportedly approaching the Competition Commission to assure that it will not raise advertising rates for cricket broadcasts for a specified period to gain approval for its merger with Disney.

Piyush Goyal's criticism of Amazon

Union Commerce Minister Piyush Goyal's speech, in which he explicitly criticised Amazon and other e-commerce companies, is expected to be a topic of discussion today. His remarks have raised concerns about a possible shift in e-commerce policy. This is the first time that a Cabinet Minister has publicly criticised e-commerce companies, alleging that they are causing job losses in the country. He accused foreign conglomerates of deliberately undercutting prices to drive out Indian companies.

Gold surges, crude declines

Gold continues to trade near record levels amid expectations of a rate cut in September. The December contract closed at $2,552.30 per ounce, with the spot price at $2,512.50. Gold traded at $2,513 this morning.

In Kerala, gold prices fell by ₹400 to ₹53,680 per sovereign.

Silver is priced at $29.55 per ounce.

The Dollar Index has weakened again, down by 40 points to 101.04, though it rebounded to 101.18 this morning.

The rupee lost all its recent gains, ending yesterday at ₹83.92 per dollar, up by 13 paise.

Crude oil prices fell further, with Brent crude closing at $76.05 yesterday, down to $75.96 this morning. WTI crude is at $71.81, and UAE's Murban crude is at $75.61.

Industrial metals remained mostly unchanged, with copper rising by 0.55% to $9,135.96 per tonne. Aluminium fell by 0.05% to $2,475.75 per tonne, while other metals gained up to 1%.

Cryptocurrencies saw gains yesterday, with Bitcoin nearing $61,000. Ether is trading at $2,635 this morning.

Market Indicators (Wednesday, 21 August 2024)

Sensex 30: 80,905.30 (+0.13%)

Nifty 50: 24,770.20 (+0.29%)

Bank Nifty: 50,685.55 (-0.23%)

Midcap 100: 58,444.05 (+0.34%)

Smallcap 100: 19,067.35 (+1.21%)

Dow Jones 30: 40,890.49 (+0.14%)

S&P 500: 5620.85 (+0.42%)

Nasdaq: 17,918.99 (+0.57%)

Dollar ($): ₹83.92 (+₹0.13)

Dollar Index: 101.04 (-0.40)

Gold (ounce): $2,512.50 (-$2.00)

Gold (sovereign): ₹53,680 (+₹400)

Crude (Brent) Oil: $76.05 (-$1.15)