Top 10 things to know before market opens for trading on Thursday
Indian market closed lower on Wednesday ahead of the outcome of the US Federal Policy Reserve as the S&P BSE Sensex closed below 59,000 while the Nifty50 was ended below 17550 levels.
Indian market closed lower on Wednesday ahead of the outcome of the US Federal Policy Reserve. The S&P BSE Sensex closed below 59,000 while the Nifty50 was ended below 17550 levels. Sectorally, the fall was seen in sectors like banks, finance, and utilities, and FMCG while the rally was visible in realty, consumer discretionary, and metal stocks.
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"Despite hopeful signs in the global markets, domestic main indices traded in a narrow range to give away its early gains in today’s volatile session. However, the broad market was robust barring banks, all major sectors were in demand, and media, metals and realty outperformed,” Vinod Nair, Head of Research at Geojit Financial Services, said.
“Realty stocks were in focus owing to an increase in property registrations in September while easing jitters over the Chinese economy bolstered metal stocks,” he said.
Nair further added that investors traded cautiously awaiting the outcome of the FOMC meeting that will clear the air regarding Fed’s tapering plans.
Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or the economy:
The U.S. stocks ended sharply higher on Wednesday (September 22) as investors took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon, said Reuters. At the closing on Wednesday, the Dow Jones Industrial Average rose 338.48 points, or 1.00%, to 34,258.32, the S&P 500 gained 41.54 points, or 0.95%, to 4,395.64 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85
Asian Markets opened on mixed note on Thursday morning as SGX Nifty opened at 17,639.00, while it was trading at 17,664.20, up 25.5 points or 0.14% at 7.20 am. However, Japanese Nikkei 225 was trading 200.31 points or 0.67% down at 29,639.40 at the same time.
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Trends on SGX Nifty indicate a positive opening for the index in India with a 26.50 points gain. The Nifty futures were trading at 17,655, up 102 points or 0.58% on the Singaporean Exchange around 07:20 hours IST.
US Federal Reserve Policy Statement:
The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals, said a statement issued by Federal Open Market Committee on Wednesday. In the press release, it further said with progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery. Inflation is elevated, largely reflecting transitory factors. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. "The path of the economy continues to depend on the course of the virus. Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain,"" it added
Evergrande unit says it settled a bond coupon payment
China Evergrande agreed to settle interest payments on a domestic bond on Wednesday, while the Chinese central bank injected cash into the banking system, soothing fears of imminent contagion from the debt-laden property developer, said a Reuters report.
ADB lowers India's GDP growth projection
The Asian Development Bank (ADB) has lowered India’s growth projections for the current financial year by a percentage point to 10 per cent, mainly due to disruptions in economic activity caused by the second wave of the COVID-19 pandemic, said a PTI report.
Retail investors rush continues for Paras Defence’s IPO Day 2:
Paras Defence and Space Technologies Limited received bids of 28,96,93,260 shares against the offered 71,40,793 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 68.57 times and the Non-Institutional Investor category was subscribed 26.32 times, While the Qualified Institutional Buyer category was subscribed 1.67 times. The Issue was subscribed 40.57 times.
The rupee declined by 26 paise to close at a nearly four-week low of 73.87 against the US currency on Wednesday due to a stronger dollar in overseas markets ahead of the outcome of the US Fed meeting and worries over China's Evergrande situation, said a PTI report.
The local unit finally settled at 73.87 a dollar, the lowest closing level since August 26. On Tuesday, the rupee had settled at 73.61 against the US dollar.
"Rupee traded weak near 73.80 as FED meeting outcome weighs on currencies along with Crude prices rising above 75$ in Brent kept rupee weak. Going ahead range fir rupee can be seen between 73.65-74.10," Jateen Trivedi, Senior Research Analyst at LKP Securities, said.
FII & DII Data:
Foreign portfolio investors (FPIs) remained net sellers for Rs 1943 cr in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1850 cr, provisional data showed on the NSE.
Stocks under F&O ban on NSE
Six stocks – Escorts, Indiabulls Housing Finance, Idea, IRCTC, PNB, and Sun TV - are under the F&O ban. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
(With inputs from PTI, Reuters and other agencies)
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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