The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 21 points.
The BSE Sensex rose 257 points to 59,031, and the Nifty50 jumped 87 points to 17,577, while the Nifty Midcap and Smallcap 100 indices gained more than 1 percent each, but the volatility remained on higher side, with India VIX rising by 0.06 percent to 19.05 levels.
As per the pivot charts, the key support level for the Nifty is placed at 17,407, followed by 17,236. If the index moves up, the key resistance levels to watch out for are 17,687 and 17,796.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming. The S&P 500 dipped after data showed private-sector business activity in the United States contracted for a second straight month in August, with particular softness in the services sector as demand weakened in the face of inflation and tighter financial conditions.
The S&P 500 declined 0.22 percent to end the session at 4,128.73 points. The Nasdaq was unchanged at 12,381.30 points, while the Dow Jones Industrial Average declined 0.47 percent to 32,909.59 points.
Asian Markets
Asia-Pacific shares rose on Wednesday after the Dow Jones Industrial Average and S&P 500 posted their third day of losses in the US. Japan’s Nikkei 225 gained 0.11 percent and the Topix index was slightly higher. The S&P/ASX 200 in Australia added 0.26 percent, while in South Korea, the Kospi climbed 0.5 percent and the Kosdaq advanced 0.83 percent.
SGX Nifty
Trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 21 points. The Nifty futures were trading around 17,586 levels on the Singaporean exchange.
Sebi notifies rules to enhance prudential norms for investments by portfolio managers
Capital markets regulator Sebi has amended rules governing portfolio managers, under which they will not be allowed to invest clients' funds in unrated securities of their related parties or associates. The move is aimed at enhancing prudential norms for investments by portfolio managers, including investments in associates and related parties.
Under the notified rules, the portfolio manager will have to ensure compliance with the prudential limits on investments as specified by the regulator. The limits will be applicable at the client level at the time of making investments by the portfolio managers.
"The portfolio manager shall not be allowed to invest clients' funds in unrated securities of their related parties or their associates," the Securities and Exchange Board of India (Sebi) said in a notification on Monday.
Leading economists see economy clipping 13-15.7% in Q1
Leading economists have pencilled in a high 13-15.7 percent uptick in the economy in the first quarter of 2022-23 with an upward bias. Soumya Kanti Ghosh, the group chief economic adviser at State Bank of India, on Tuesday said he expects the GDP to clip past 15.7 percent in the first quarter with more chances of the final numbers printing in higher, while Aditi Nayar, the chief economist at the rating agency Icra, said the economy will grow much lower at 13 percent in the June quarter.
The national statistical office will announce the first quarter GDP numbers later next week. While GDP contracted by 23.9 percent in June 2020 due to the first wave of the pandemic, the same had given a higher boost in June 2021 clipping at 20.1 percent, despite the period being more devastating in terms of loss of lives from the second wave of Covid-19.
Adani media arm to purchase 29.18% stake in NDTV, launch open offer
Adani Group's media arm on August 23 announced that it would purchase a 29.18 percent stake in New Delhi Television Ltd (NDTV), and make an open offer to acquire another 26 percent of the shares in the company.
The acquisition of 29.18 percent stake will be indirect, as it will be made through Vishvapradhan Commercial Pvt Ltd (VCPL), a wholly owned subsidiary of AMG Media Network Ltd (AMNL), which is owned by Adani Enterprises Ltd (AEL).
Goldman sees Powell sticking to July tightening message at Jackson Hole
Goldman Sachs said on Tuesday it expects Federal Reserve Chair Jerome Powell to reiterate the case for slowing the pace of tightening, when he speaks at the annual Jackson Hole symposium on Friday. In a research note, Goldman economists said the message will be the same as laid out in his July news conference and in the minutes of the July Federal Open Market Committee meeting released last week.
"He is likely to balance that message by stressing that the FOMC remains committed to bringing inflation down and that upcoming policy decisions will depend on incoming data," the note said, adding that policymakers saw the easing of financial conditions since July as unhelpful to keeping the economy on a below-potential growth trajectory.
German bond yields at new highs after stronger-than-expected PMIs
German bond yields rose on Tuesday to new multi-week highs after data showed euro zone business activity slowed less than expected in August. Yields had already risen after S&P Global's flash composite Purchasing Managers' Index reading for Germany, tracking both manufacturing and services activity, while falling further in August, was slightly higher than analyst expectations.
Oil jumps nearly 4% on possible OPEC+ supply tightening
Oil prices surged by nearly 4 percent on Tuesday after Saudi Arabia floated the idea of OPEC+ output cuts to support prices in the case of returning Iranian crude and with the prospect of a drop in US inventories. The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg.
Global benchmark Brent crude settled at $100.22 a barrel, up $3.74, or 3.9 percent. US West Texas Intermediate crude closed $3.38, or 3.7 percent, higher at $93.74 a barrel.
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 563 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 215.20 crore on August 23, as per provisional data available on the NSE.
With inputs from Reuters and other agencies