The BSE Sensex and the NSE Nifty are poised to see flat opening on Monday, following mixed cues from global peers as caution prevailed ahead of the release of U.S. inflation data on Tuesday. Investors will also keep a close eye on domestic retail inflation numbers for August, and industrial output (IIP) data for July, which may impact the Reserve Bank of India (RBI’s) decision in the policy review. The muted trends on SGX Nifty also indicated a flat opening for the domestic bourses, with SGX Nifty futures trading 8.5 points, 0.05%, higher at 17,850 levels on the Singapore Stock Exchange at 8:15 AM.
Last week, the Indian equity benchmarks ended on a robust note, with both Sensex and Nifty rising nearly 2% during the week ended September 9. The market rally was supported by firm global cues, ease in international crude prices, macro data, and the State Bank of India's report which projected that India, which is currently ranked the fifth largest economy, will become the third largest by 2029. On Friday, the domestic bourses closed higher for the second day, with Sensex rising 105 points to end at 59,793 and Nifty settling 35 points higher at 17,833. The top gainers on the Sensex pack were Tech Mahindra, IndusInd Bank, Infosys, HCL Technologies, Maruti, Tata Consultancy Services, State Bank of India, Wipro, and Axis Bank. On the other hand, UltraTech Cement, Mahindra & Mahindra, Larsen & Toubro, and Bajaj Finance were among the top losers.
Stocks to watch
Reliance Industries: The conglomerate said that its subsidiary Reliance Petroleum Retail will acquire the polyester business of Shubhalakshmi Polyesters & Shubhlaxmi Polytex for ₹1,592 crore.
Reliance Infrastructure: The Reliance Anil Dhirubhai Ambani Group company has filed an arbitration claim of ₹13,400 crore against Adani Group in the Mumbai Centre for International Arbitration (MCIA).
Oil and Natural Gas Corporation: The oil and gas major has inked six contracts for Discovered Small Fields (DSF) in the offshore under DSF-III bid round, with three each for fields in the Arabian Sea and Bay of Bengal.
Tata Steel: The board of directors of the company is scheduled to meet on September 14 to consider the issuance of unsecured non-convertible debentures on private placement basis.
SpiceJet: The budget carrier has appointed Ashish Kumar as its Chief Financial Officer, effective from September 9.
Sunteck Realty: The real estate developer has acquired a land parcel of around 7.25 acres at Beverly Park, Mira Road, Mumbai, under the JDA model. The project is estimated to have development potential of approx 2.5mn sq.ft built up area and a revenue potential of around ₹3,000 crore.
Oil India: The state-owned oil company has dissolved its subsidiary Oil India Cyprus on September 10, 2022
Titagarh Wagon: The UAE-based PE firm and Italian government have acquired around 44% stake in Titagarh Wagons' fully-owned subsidiary Firema SpA, through fresh equity infusion worth euro 20 million.
Ujjivan Small Finance Bank: The private sector lender has issued non-convertible debentures of ₹75 crore, with a final redemption date of April 26, 2028 and the coupon rate is 11.95 %.
Ambuja Cements, Delta Corp: Both the companies will be under NSE F&O ban on Monday.
Here are the key things investors should know before the market opens today:
Wall Street ends higher
On Wall Street, all three major indices closed higher on Friday, registering their first positive week in four, as investors turned bullish ahead of the U.S. consumer price report slated to be released on Tuesday. The rally is likely to extend this week if inflation data show some downward trend. The Dow Jones Industrial Average settled 1.19% higher, the S&P 500 gained 1.53%, and the Nasdaq Composite rallied 2.11%.
Asian shares open higher
Shares in the Asia-Pacific region were trading mostly higher in opening trade on Monday, following a strong finish on Wall Street on Friday, amid optimism that the U.S. CPI inflation report would ease concerns of tighter monetary policy. The correction in the U.S. dollar index also lifted market sentiments. Markets in China and Hong Kong were closed for a public holiday.
Regional heavyweight Japan’s Nikkei 225 rose 1%, South Korea’s Kospi gained 0.3%, and Australia's ASX 200 rose over 1%.
Taiwan’s Weighted index was the best performer in the regional market with a 1.8% gain, while the Straits Times in Singapore and Indonesia’s Jakarta Composite climbed 0.3% and 0.2%, respectively.
FPIs inject ₹5,600 cr in Indian equities in Sept so far
Foreign investors have made a net investment of around ₹5,600 crore into the domestic equity markets in September so far amid optimism about improving macro fundamentals compared to other emerging markets. Last month, the FPIs (Foreign Portfolio Investments) made a record investment of ₹51,200 crore, the highest in the calendar year 2022), after a net investment of nearly ₹5,000 crore in July.
FIIs emerge as net buyers, DIIs net buyers
Foreign institutional investors (FIIs) emerged as net buyers in the Indian equity market on September 8, while domestic institutional investors (DIIs) turned net sellers. As per the exchange data, FIIs net brought shares worth ₹2,132.42 crore, while DIIs net sold stocks worth ₹1,167.56 crore.