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Asian stock markets slid sideways, while the US stock market indices ended higher overnight.
On Monday, Nifty and Sensex ended in the green for the sixth day in a row, each one gaining nearly 3%. Nifty touched its new record high of 20,008.15 level. Nifty’s last all-time high was 19,991.85, which it hit on July 20, this year. Thus, it scaled a new record in 36 sessions.
Sensex closed 528.17 points, or 0.79 per cent, higher at 67,127.08 while the Nifty closed the day with a gain of 176.40 points, or 0.89 per cent, at 19,996.35.
“Bulls continue to lead the way as the benchmark index surged to a historic high, breaching the 20,000 mark for the very first time. This impressive rally followed a breakout from a descending channel that occurred last week. Looking ahead, market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark,” said Rupak De, Senior Technical analyst at LKP Securities.
Here are key global market cues for Nifty and Sensex today:
Asian Markets
Tuesday saw a slight sideways movement in Asian stock markets as the dollar took a breather, its recent advances being checked by pushback from the central banks of China and Japan as well as by speculators awaiting U.S. inflation data to indicate whether or not interest rates have reached their peak.
After Bank of Japan Governor Kazuo Ueda suggested that policymakers might have enough economic data by year’s end to decide that short-term rates will need to increase, the yen experienced its best day against the dollar in two months overnight.
The yuan experienced its best day in six months as a result of the government’s commitment to correcting one-way transactions .
Tuesday witnessed continued pressure on Japanese government bonds, with 10-year JGB rates rising 1 basis point to a new high of 0.71%. The largest MSCI index of Asia-Pacific shares outside of Japan was unchanged. The Nikkei in Japan increased by 0.3% as markets awaited US inflation statistics and this week’s meeting of the European Central Bank to determine interest rate forecasts and sentiment.
Wall Street
US stocks closed the session higher and the dollar declined on Monday. As investors anticipated Wednesday’s inflation report and the Bank of Japan signalled it might be moving towards ending the era of negative interest rates.
With a 1.1% increase, the tech-heavy Nasdaq led the US equity surge, with electric vehicle manufacturer Tesla Inc. and online retailer Amazon.com providing the biggest lift to the upside.
The Dow and the S&P 500 both increased by 0.3% and 0.7%, respectively. In terms of US economic data this week, the relatively tranquil session appeared to be the calm before the storm, with Wednesday’s crucial consumer prices report (CPI) taking centre stage.
The Nasdaq Composite increased 156.37 points, or 1.14%, to 13,917.89, while the S&P 500 jumped 30.01 points, or 0.67%. The Dow Jones Industrial Average increased 87.32 points, or 0.25%, to 34,663.91.
The yield on the US Treasury edged up ahead of the CPI release.
Tesla shares jump as Morgan Stanley predicts $600 billion value boost from Dojo
After Morgan Stanley analysts raised the company on Monday, citing the potential of the supercomputer that Tesla is building, the price of Tesla stock soared.
Mogan Stanley predicted that Tesla’s Dojo supercomputer will increase the company’s value by around $600 billion by faster adoption of robotaxis and network services.
The analysts at Morgan Stanley raised their $400 price objective on Tesla shares from $250, a 60% rise and suggested that investors upgrade to a “overweight” position. The shares recently increased by more than 9%, outperforming the S&P 500.
Based on the stock’s close price of $248.5 on Friday, that is almost 76% greater than Tesla’s market worth of about $789 billion. On Monday, the stock increased by almost 5.7% to $262.70.
KKR to invest in Reliance Retail
Reliance Retail Ventures Ltd, retail subsidiary of Reliance Industries announced on Monday that global investment firm KKR, through an affiliate, will invest ₹2,069.50 crore into RRVL, a subsidiary of Reliance Industries Limited. This investment values RRVL at a pre-money equity value of ₹8.361 lakh crore, which makes it among the top four companies by equity value in the country.
Following this development, Reliance Industries will be in focus today.
Also Read: KKR to invest ₹2,069.50 crore in Reliance Retail, increase stake from 1.17% to 1.42%
Larsen & Toubro (L&T) buyback
L&T on Monday evening increased its offer price to ₹3,200 apiece from ₹3,000 per share, for its proposed upcoming ₹10,000 crore share buyback, as the stock rallied and the premium to market price narrowed since the original announcement in July. On 26 July, L&T had announced the buyback—the first such offer in its eight-decade-long history. L&T had said it may offer to buy back a 2.4% stake, or 33.33 million shares, held by public shareholders through a book-building process on the stock exchange.
Crude Oil
Tuesday saw Brent oil futures trading slightly above $90 per barrel as investors awaited a slew of macroeconomic data that will be released later this week and may show whether Europe and the US will continue to raise interest rates.
At 00:03 GMT, the international benchmark Brent contract was down 6 cents at $90.58 a barrel, while West Texas Intermediate crude futures were down 2 cents at $87.27.
Last week, benchmark brent crude traded at $90 a barrel after Saudi Arabia and Russia said that it would extend its voluntary production cut of 1.3 million barrels of oil per day through the end of the year.
GIFT Nifty
GIFT Nifty rose, trading more than 70 points above the close of Nifty Futures on Monday. According to analysts, Nifty’s biggest support for Tuesday’s trade will be at 19807 mark.
The technical landscape continues to be positive as long as Nifty trades above the 19807 mark. Technically speaking, immediate aggressive bullish targets seen at Nifty’s psychological 20,500 mark. Nifty’s 200 DMA at 18417 mark.
European Markets
On Monday, European stock markets ended up higher as traders anticipated a busy week of global economic data releases.
The benchmark Stoxx 600 index increased by 0.3% in the end, reversing earlier gains of up to 0.9%. The Stoxx 600 broke its longest losing streak since February 2018 on Friday. The trend had lasted seven sessions.
(With inputs from Reuters and Bloomberg)
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Updated: 12 Sep 2023, 07:47 AM IST
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