Indian benchmarks BSE Sensex and NSE Nifty are set to rise in opening trade on F&O expiry day, following strong cues from global equities as market sentiment was boosted after the Bank of England intervened in the bond market to stabilise financial markets. The bullish trends on SGX Nifty also indicated a gap-up opening for the domestic bourses, with SGX Nifty futures trading 151 points, 0.9%, higher at 17,040 levels on the Singapore Stock Exchange at 8:30 AM. The upcoming RBI Monetary Policy Committee (MPC) meeting and monthly derivatives expiry will keep investors on edge. The policy decision will be announced on Friday, while the market is expecting a 50 basis point hike in the interest rate.

On Wednesday, the Indian equity benchmarks ended lower for the sixth straight session, weighed down by weak global cues and sustained foreign fund outflows. The weakness in domestic bourses was in line with global equities as investors remained concerned about the economic downturn amid hawkish policy stances by the central banks across the world. The 30-share Sensex dropped 509 points, or 0.89%, to close at 56,598, while the broader NSE Nifty declined 149 points, or 0.87%, to settle at 16,859. The top five losers on the Sensex pack were ITC, Axis Bank, Reliance Industries, Tata Steel, and State Bank of India, which fell in the range of 2%-3%. On the sectoral front, all indices, barring IT and pharma, ended in negative terrain, while bank and metal space saw maximum sell-off.

Stocks to watch

Suzlon Energy: The company plans to raise ₹1,200 crore through rights issue to the eligible equity shareholders of the company. The issue will open for subscription on October 11 and will close on October 20. The funds raised through the issue will be partially used to repay loans and meet general corporate purposes, subject to receipt of consent from its lenders.

Ambuja Cements: Billionaire Gautam Adani-led company has said it pledged 50.5% shareholding in its subsidiary ACC as "collateral for loans taken by the company". The company pledged its total 9.39 crore shares of ACC on September 26, 2022, it said in a BSE filing on Wednesday.

IRCTC: The ticketing and catering arm of the Indian Railways will be in focus as the Union Cabinet on Wednesday approved Indian Railways’ proposal for the re-development of three major railway stations - New Delhi, Ahmedabad and CSMT, Mumbai.

Nykaa: FSN E-Commerce Ventures, the parent company of Nykaa, has announced that a meeting of its board of directors is scheduled for October 3 to consider and approve the issuance of bonus shares to shareholders.

Supriya Lifescience: The company has received Certification of Suitability (CEP) for Diphenhydramine hydrochloride, API in anti-histamine therapy, from European Directorate for the Quality of Medicines and HealthCare (EDQM).

S H Kelkar and Company: The firm’s subsidiary, Keva Europe BV, has acquired 19% stake in Netherlands-based Provier Beheer BV, the holding company of Holland Aromatics BV.

Essar Shipping: The board of directors of the company has approved the appointment of Vipin Jain as Chief Financial Officer, effective from October 1, 2022. He will replace Ranjit Singh, who has decided to step down due to personal occupancy.

NSE F&O ban: Vodafone Idea will remain under the NSE F&O ban today.

Here are the key things investors should know before the market opens today:

U.S. stocks surge

In the overnight trade, U.S. stocks ended higher after the Bank of England (BoE) said it would buy longer-term bonds to stabilise financial markets, which was rattled by the U.K. government's plans to cut taxes, sending the pound tumbling against the dollar. The U.K. central bank’s bailout move pushed the U.S. government bond lower and also boosted equities to recover from their 2022 lows. The Dow Jones Industrial Average rose 1.9%, the S&P 500 rallied 2%, while the Nasdaq Composite surged 2.1%.

Asian shares rise on BOE bailout move

Shares in the Asia-Pacific region were flashing in green in early trade on Thursday, tracking a strong finish on Wall Street overnight. The market sentiment got a lift after the U.K. central bank pledged to buy 65 billion pounds ($108 billion) of government bonds to boost the global equity market. 

The Hang Seng index in Hong Kong was the biggest gainer in the regional market by rising 1.5%. Japan’s benchmark index Nikkei 225 climbed 0.25%, South Korea’s Kospi rallied 1%, and Australia’s ASX 200 index rose 1.4%.

Similarly, Taiwan’s Weighted index added 0.4%, the Straits Times in Singapore gained 1%, and Indonesia’s Jakarta Composite rose 0.2% in opening trade.

Markets in mainland China also witnessed a bullish trend, with the Shanghai Composite and the Shenzhen Component rising by 0.6% and 0.8%, respectively.

FIIs selling spree continue

Foreign institutional investors (FIIs) continued to remain net sellers in the Indian equity market on September 28, while domestic institutional investors (DIIs) extended support to the market. As per the exchange data, FIIs net sold shares worth ₹2,772.49 crore, while DIIs net brought stocks worth ₹2,544.17 crore.

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