The BSE Sensex and the NSE Nifty are set to open higher on Tuesday, tracking firm cues from Asia, while markets on Wall Street were closed for Labor Day on Monday. The bullish trends on SGX Nifty also indicated a gap-up opening for the domestic bourses, with SGX Nifty futures trading 38 points, 0.21%, higher at 17,722 levels on the Singapore Stock Exchange at 7:50 AM. Among the individual stocks, DreamFolks Services, the country’s largest airport service aggregator, is set to make its market debut today after receiving strong response for its ₹562 crore initial public offering. The issue, which opened between August 24 and August 26, was subscribed 56.68 times as it received bids for 53.74 crore equity shares against an offer size of 94.83 lakh shares.
On Monday, the Indian equities closed higher in range-bound trade, led by strong gains in metal, banking, and capital goods stocks amid mixed global cues. The BSE Sensex rose 443 points, or 0.75%, to settle at 59,246, and the NSE Nifty rose 126 points, or 0.72%, to 17,666. The top gainers of the BSE Sensex pack were Sun Pharmaceutical Industries, ITC, Reliance Industries, NTPC, and Larsen & Toubro. On the other hand, Nestle India, UltraTech Cement, Wipro, Power Grid Corporation, and Asian Paints were among notable losers. In the broader market, the BSE smallcap rose 0.89% and the midcap index added 0.46%.
Stocks to watch
Tata Motors: The auto major has launched the country’s first CNG-powered truck in the medium and heavy commercial (M&HCV) vehicle segment in the 28- and 19-tonne nodes. It also launched a fleet of seven trucks in the intermediary and light commercial vehicle (I&LCV) segment.
NTPC: The state-owned power generating company has acquired the stressed Jhabua thermal project (600Mw) of Gautam Thapar-owned Avantha Group, through the Insolvency and Bankruptcy Code (IBC) process.
Hindustan Aeronautics (HAL), Larsen & Toubro (L&T): The HAL-L&T space consortium has bagged a ₹860 crore contract for the next five Polar Satellite Launch Vehicles (PSLVs).
Delhivery: SBI Mutual Fund has acquired over 1.07 lakh equity shares in the logistics company through open market transactions on September 1. With this, its stake in the company rose to 5%, up from 4.98% earlier.
Reliance Power: The Reliance Anil Dhirubhai Ambani Group company and its subsidiary have signed a pact with Varde Partners for availing debt of up to ₹1,200 crore.
Commercial Syn Bags: The board of directors of the company has declared dividend at ₹2.10 per share, which will be paid to 1.27 crore equity shareholders and total 6,07,500 warrants holders of the company. The record date for the dividend payment has been fixed as September 23.
Here are the key things investors should know before the market opens today:
European stocks end lower
In the overnight trade, European stock closed lower after Russia announced that its main gas supply pipeline to Europe would stay shut indefinitely, which raised concerns about economic risks in the region. Tracking weakness in equities, the euro also tumbled below 99 US cents for the first time in 20 years. The investor also kept an eye on the European Central Bank (ECB) meeting later this week, which is expected to raise interest rates to combat inflation. The pan-European Stoxx 600 closed 0.6% lower. London's FTSE 100 ended 0.09% higher, while Germany's DAX dropped 2.2%.
Asian shares rise
Shares in the Asia-Pacific region were trading higher in opening trade on Tuesday, undermining weak cues from European markets. The financial markets in the U.S. were closed on September 5 on account of Labor Day.
Regional heavyweight Japan’s Nikkei 225 rose 0.45%, South Korea’s Kospi climbed 0.4%, and Australia's ASX 200 index rose 0.15%. The Straits Times in Singapore gained 0.3%.
The Hang Seng index in Hong Kong added 0.2% and Taiwan Weighted index surged 0.56%.
Markets in mainland China were also trading mixed, with the Shanghai Composite rising by 0.25%, while the Shenzhen Component falling by 0.25%.
FIIs turn net sellers, DIIs net buyers
The foreign institutional investors (FIIs) turned net sellers in the Indian equity market on September 5, while domestic institutional investors (DIIs) emerged as net buyers. As per the exchange data, FIIs net sold shares worth ₹811.75 crore, while DIIs net purchased stocks worth ₹533.77 crore.
Crude prices rise on supply cut
Brent and U.S. crude prices jumped in early trade on Tuesday, after rallying 4% in overnight trade as oil producing countries (OPEC+) agreed to a small oil production cut to bolster prices. In a meeting on Monday, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to reduce output for October by 100,000 barrels per day (bpd), amounting to only 0.1% of global demand.
"OPEC and its allies led by Russia on Monday agreed a small oil production cut to bolster prices that have slid on fears of an economic slowdown….Prices will not be impacted as there will be minor upmove. This production cut can be a breather for process due to weak macro sentiment, renewed china lockdown, uncertainty over potential US- Iran deal,” says Megh Mody, Commodities and Currencies Research Analyst, Prabhudas Lilladher.
In early Asian trading hours on Tuesday, the Brent oil for November delivery was up 0.13% at $95.31 per barrel, while the U.S. West Texas Intermediate (WTI) crude October futures surged 2.4% to $88.97 a barrel.
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