The BSE Sensex and the NSE Nifty are poised to open higher on Friday, following strong cues from Asia and a positive finish on Wall Street overnight. Investors globally awaited a speech by U.S. Federal Reserve chairman Jerome Powell at the Jackson Hole central bankers' summit tonight for guidance on interest rate hikes. Back home, firm trends on SGX Nifty also indicated a positive opening for the domestic bourses, with SGX Nifty futures trading 102 points, or 0.58%, higher at 17,690 levels on the Singapore Stock Exchange at 8:00 AM. Among individual stocks, shares of Syrma SGS Technology will be in focus as the engineering services company will make its market debut today. The issue price has been fixed at ₹220 per share.
On Thursday, the Indian equities closed lower in choppy trade as investors rolled over their position ahead of monthly future and options expiry. The indices floated in positive terrain for most of the day, following firm cues from Asian peers, but slipped towards the end of the trade as investors turn cautious ahead of the Federal Reserve Chair Jerome Powell's speech at an annual economic conference in Jackson Hole for more clarity on the central bank’s future rate hike plans. The BSE Sensex shed 310 points to close at 58,774 levels, and the Nifty tumbled 82 points to settle at 17,522. The top losers of the BSE Sensex pack were Bajaj Finance, Power Grid Corporation of India, Infosys, Tata Consultancy Services, and IndusInd Bank. On the other hand, Maruti Suzuki India, State Bank of India, Dr. Reddy's Laboratories, Kotak Mahindra Bank, and Titan Company were among notable gainers.
Stocks to watch
HDFC Bank: The private sector lender will invest between ₹49.9 crore to ₹69.9 crore to acquire around 10% share in Go Digit Life Insurance, owned by promoters of IPO-bound Go Digit General Insurance.
Lupin: The drug maker on Thursday said it has signed a deal with Japan-based I'rom Group Co for a product used in the treatment of postmenopausal women with osteoporosis, among others.
Eicher Motors: The auto major has said that Kaleeswaran Arunachalam has tendered his resignation from the chief financial officer and key managerial personnel position.
Indian Oil Corp: The state-owned oil marketing company aims to spend ₹2 lakh crore ($25 billion) to achieve carbon neutrality by 2046.
Dr Reddy's Laboratories: The pharma major has received Establishment Inspection Report (EIR) from the United States Food & Drug Administration (USFDA) for its formulations manufacturing facility (FTO 11) in Srikakulam, Andhra Pradesh.
Infibeam Avenues: The company has received board approval for fundraising of ₹161.50 crore via issue of warrants on a preferential basis.
PVR: BNP Paribas Arbitrage on Thursday offloaded 4,05,183 equity shares in the multiplex chain operator via open market transactions. These shares were sold at an average price of ₹1,841.14 per share.
ACC, Ambuja Cement: Shares of cement majors will be in focus as the Adani Group is likely to launch next week an open offer worth acquiring 26% stake each in Swiss firm Holcim's listed Indian entities.
Here are the key things investors should know before the market opens today:
Wall Street closes higher ahead of Jackson Hole meeting
In the overnight trade, the U.S. indices ended on strong note amid a surge in buying in the final hour of trading ahead of the speech by Fed chairman Jerome Powell at Jackson Hole, Wyoming, on the outlook for inflation and interest rate hikes. Investors will keep a close eye on Powell’s speech at the annual Jackson Hole conference for guidance on interest rate hikes and the central bank's position to combat inflation. The Dow Jones Industrial Average rose 1%, the S&P 500 added 1.4%, and the tech-heavy Nasdaq Composite rallied 1.6%.
Asian shares follow Wall Street higher
Shares in the Asia-Pacific region were trading mostly higher in opening trade on Friday, tracking strong finish at Wall Street overnight as markets awaited more cues on U.S. monetary policy. Investors remained focused on Federal Reserve Chairman Jerome Powell's speech at the annual Jackson Hole conference scheduled for midnight tonight for more clarity on the pace of future rate hikes and the central bank’s plan to combat inflation.
Regional heavyweight Japan’s Nikkei 225 surged 0.9%, South Korea’s Kospi added 0.5%, and Indonesia’s Jakarta Composite traded flat.
Similarly, Hong Kong’s Hang Seng gained 0.7%, Taiwan Weighted index jumped 0.75%, Australia’s ASX 200 soared 0.9%, and Singapore’s Straits Times climbed 0.3%.
Markets in mainland China were trading higher, with the Shanghai Composite and the Shenzhen Component rising by 0.4% and 0.7%, respectively.
FIIs remain net buyers, DIIs net sellers
The foreign institutional investors (FIIs) remained net buyers in the Indian equity market on August 25, while domestic institutional investors (DIIs) turned net sellers. As per the exchange data, FIIs net purchased shares worth ₹369.06 crore, while DIIs net offloaded stocks worth ₹334.31 crore.
Crude prices rise 1%
Brent and U.S. crude prices rose over 1% in early trade on Friday amid signs of improving demand, while traders kept an eye on the U.S. Fed Chair Jerome Powell’s speech at the annual Jackson Hole economic symposium on Friday. The rise in crude prices was also supported by a drop in U.S. crude inventories last week, as well as news that OPEC may lower oil production to support prices.
In early Asian trading hours on Friday, the Brent oil for October delivery climbed 0.98% to $100.3 per barrel, while the U.S. West Texas Intermediate (WTI) crude September futures rose 1% to $93.45 a barrel.