Market Overview:
This morning, the GIFT Nifty was showing a slight gain, hovering around 25,458, indicating a potential flat opening for the Indian benchmark indices, Sensex and Nifty, on September 18. The previous trading day, September 17, saw the Sensex and Nifty both close at record highs, marking their second consecutive day of gains. This upward momentum was primarily fueled by positive performances in the telecom, automotive, and construction sectors. Investors’ optimism was partly influenced by expectations ahead of the US Federal Reserve’s monetary policy announcement, with market participants predicting a 25 basis point interest rate cut.
At the end of the trading session on September 17, the Sensex had increased by 80 points, or 0.1%, closing at 83,068, while the Nifty climbed 34 points to finish at 25,418.50.
Market Activity Today
The GIFT Nifty has been trading marginally lower in the early hours, reinforcing the outlook for a flat start. Nifty futures were positioned around 25,458 this morning.
American Market Update
In the US, stock markets ended nearly unchanged on Tuesday. The Dow Jones Industrial Average saw a slight decline, falling 15.90 points (-0.04%) to close at 41,606.18. Conversely, the S&P 500 index and the Nasdaq Composite experienced minor gains, with the former rising 1.49 points (+0.03%) to 5,634.58 and the latter increasing 35.93 points (+0.20%) to 17,628.06.
Asian Markets Performance
The Asian markets displayed a mixed trend today, with the Topix index gaining 0.45% and the Nikkei index rising by 0.80%. However, Taiwan’s market showed a decline of 0.36%.
Commodity Market Insights
Gold and Silver Prices
Gold is trading slightly higher at $2,573 per ounce. In contrast, silver has dipped about $1, settling at $30.45.
Crude Oil Market Trends
Crude oil prices have softened, with Brent crude experiencing a 0.53% decrease and WTI crude down by 0.55%. This marks a continuation of the market’s cautious sentiment around oil supply fluctuations.
Bond Yield Movements
The US bond market reflected a modest decline in yields, with the 10-year bond yield falling by 10 basis points to 3.64%, and the 2-year bond yield down by 312 basis points to 3.60.
Dollar Index Stability
The dollar index has stabilized, currently resting at 100.84, suggesting a cautious equilibrium in the currency market.
Asian Currencies Performance
In early trading, many Asian currencies showed strength, with the Malaysian ringgit appreciating by 7% on a year-to-date basis. However, the Taiwan dollar recorded a decline of 4%.
LME Commodities Update
Commodity markets experienced a downturn this morning, with lead prices declining the most at 1%. Other commodities followed suit with aluminum down by 0.18%, copper by 0.21%, nickel by 0.59%, and zinc by 0.68%.
Foreign Institutional Investment Trends
On September 17, foreign institutional investors (FIIs) were net buyers, acquiring equities worth Rs 482 crore, while domestic institutional investors (DIIs) also showed positive buying momentum, purchasing a total of Rs 874 crore in equities.
Stay connected to Moneycontrol for the latest updates impacting the currency and equity markets today.
