Markets to open higher amid mixed global cues; Vedanta, Zydus, Adani Power stocks in focus

Monday’s trading session is set to open higher, as the Nifty was in an uptrend after tracking mixed cues from the global markets. As of 8:20 a.m., the Gift Nifty was up by 57 points from its previous close, standing at 24,882.50. 

On the global markets front, the Asian markets opened on a positive note, as Japan’s Nikkei 225 index was up by 1.56%, after the country’s prime minister, Shigeru Ishiba, resigned. Japan’s macro data also contributed to the positive market sentiment, as it grew at an annualised 2.2% rate from the previous quarter, which was above the predicted 1% rate. Singapore’s Straits Times was up by 0.06%, whereas Shanghai’s Composite was down by 0.14%.

Meanwhile, the US markets ended lower, as the employment data showcased a weakened job market, with unemployment at 4.3%, a four-year peak. This has created concerns over economic growth. The S&P 500 index fell 0.32%, the Dow Jones Industrial Average by 0.48%, while the Nasdaq Composite was down marginally by 0.03%. 

Both Brent Crude and crude oil were up by 1.1% and 1.13% respectively, after OPEC decided to continue increasing oil production for October, but at a much lower rate of 137,000 barrels per day. The monthly increase seen for September was about 555,000 barrels per day. 

On the domestic front, investors will closely track all the sectors that were impacted by the GST reforms announced last week. These sectors include auto, FMCG, consumer durables, pharma and realty. Markets could also track cues from the positive macro developments, with GDP hitting a 5-quarter high of 7.8%. 

With signs of US-India relations strains starting to thaw, expectations of lowering tariffs could provide hope for the markets. On Saturday, September 6, US President Donald Trump made a U-turn from his comment made in a Truth Social post about losing India and Russia to China. He said that he will “always be friends” with Modi, calling India-US ties a very special relationship. Prime Minister Narendra Modi, too, responded through a post on X, saying he “deeply appreciates and fully reciprocates President Trump's sentiments”. PM Modi added that, “India and the US have a very positive and forward-looking comprehensive and global strategic partnership.” 

Foreign institutional investors (FIIs) sold net shares worth ₹1,304.91 crore, while Domestic Institutional Investors (DIIs) purchased ₹1,821.23 crore worth of net shares. 

Stocks in focus today:

Auto stocks - Mahindra and Mahindra, Tata Motors and Hyundai shares will be in focus as the auto manufacturers announced slashed rates on their cars after the GST reforms brought down taxation. 

Vedanta - The mining conglomerate beat the Adani Group to make a winning bid for the debt-ridden Jaiprakash Associates Ltd (JAIL) for Rs 17,000 crore.

Zydus Lifesciences - The pharmaceutical company informed the exchanges that the USFDA inspected the group’s injectable manufacturing plant at Jarod, near Vadodara, Gujarat, and concluded with four observations. There were no data integrity-related observations.

Adani Power - The company partnered with Druk Green Power Corp. Ltd. (DGPC), a state-owned generation utility, and signed a Shareholders Agreement (SHA) for setting up a 570 MW Wangchhu hydroelectric project in Bhutan with an investment of ₹60 billion.