Market Overview
Indian benchmark indices, the Sensex and Nifty 50, are anticipated to open on a stable or positive note on September 17. Earlier in the day, Nifty was trading slightly higher at around 25,492.50. The markets demonstrated resilience by hitting new all-time intraday highs on September 16, successfully breaking a three-day losing streak. Nifty closed at approximately 25,400 yesterday, bolstered by strong performances from banking, metal, and energy sectors. By the end of the trading session, the Sensex recorded a gain of 97.84 points, or 0.12%, concluding at 82,988.78, while the Nifty witnessed an increase of 27.25 points, or 0.11%, ending at 25,383.75.
Today’s Market Performance: GIFT Nifty
GIFT Nifty is showing a subtle upward trend today, indicating a stable to positive opening. Nifty futures are currently trading around the 25,492.50 mark.
American Market Insights
In the US, the S&P 500 managed a mild gain during a sluggish trading session, while the Nasdaq experienced a decline. Notably, the Dow Jones Industrial Average rose by 228.30 points, or 0.55%, closing at 41,622.08. The S&P 500 increased by 7.07 points, or 0.13%, finishing at 5,633.09, whereas the Nasdaq Composite fell by 91.85 points, or 0.52%, to close at 17,592.13.
Asian Markets Trading Patterns
Asian markets displayed mixed results today. SGX Nifty is seeing a gain of 14.00 points, while the Japanese Nikkei index is down by approximately 2.10%, hovering around 35,828.54. Conversely, the Strait Times index shows an increase of 0.46%, and the Hang Seng index is up by 0.87%, currently at 17,573.41.
Goldman Sachs Forecast
In a recent analysis, brokerage firm Goldman Sachs has warned that the US market may experience significant challenges in September. They noted that this month could pose the most substantial pressure on the S&P 500 index, which has seen the biggest decline of late, with the index closing down on 10 out of the last 11 trading days.
Market Focus on US Federal Reserve Decisions
The much-anticipated two-day meeting of the US Federal Reserve starts today, with an interest rate decision expected tomorrow. Current estimates suggest that 65% of market participants are predicting a 0.50% cut in rates, while 35% are looking for a lesser 0.25% reduction. Goldman Sachs anticipates that the Fed will likely opt for a 0.25% cut, aligning with views from Oxford and Oppenheimer AMC.
Crude Oil Price Movements
Crude oil prices are on the rise as the lingering effects of Hurricane Francine disrupt production levels in the US Gulf of Mexico, surpassing concerns regarding Chinese demand ahead of the Federal Reserve’s impending interest rate decision. Currently, Brent crude has increased by 0.21%, while WTI crude has risen by 0.47%.
US Bond Yields
The US bond yield landscape shows the 30-year bond yield decreasing to 3.93%, with the 10-year bond at 3.62%. Meanwhile, the 5-year bond yield is currently at 3.41%, and the 2-year bond yield stands at 3.56%.
Analysis of the Dollar Index
The dollar is trading near its lowest point for the year as market speculation surrounds a potential stimulus cycle led by any sharp cuts to interest rates in the US. At present, the dollar index is hovering around the 100.73 level.
Trends in Asian Currencies
Among Asian currencies, most are demonstrating gains against the US dollar except for the South Korean Won and Thai Baht. The Indonesian Rupiah shows an increase of 0.240%, while the South Korean Won is slightly weaker by 0.002%. The Japanese Yen gained 0.093%, and the Philippine Peso rose by 0.099%. The Thai Baht is down by 0.309%, while the Taiwanese dollar increased by 0.361%. China’s Renminbi and the Malaysian Ringgit have risen by 0.289% and 0.109%, respectively. However, the Singapore dollar saw a marginal decline of 0.046%.
LME Commodities Update
On the commodities front, all major metals, except lead, are trending upward, with Nickel and Aluminium both showing gains exceeding 2%.
Foreign Institutional and Domestic Institutional Investment Flows
Foreign Institutional Investors (FIIs) have made noteworthy contributions, purchasing equities worth ₹1,635 crore on September 16. Domestic Institutional Investors (DIIs) have also been active, buying equities valued at ₹754 crore on the same day.
