Weak start in store; Happiest Minds IPO to make debut today!

The early trend from SGX Nifty indicates that the Indian markets are in for a weak start as the cues from global cues are fragile. SGX Nifty is trading lower by 70 points at 11,534 levels.

Technically speaking, one needs to watch whether or not, Nifty holds above its important support level of 11,565; if it does, the bulls would try regaining their lost ground after the initial bump. On the other hand, if it fails to do so, Nifty would enter again into a consolidation range.

All eyes would be on the listing of Happiest Minds. We believe a happy listing lay in store as it witnessed a huge demand for its IPO as it was oversubscribed 151 times. 

The Asian indices are reeling under selling pressure on Thursday as stocks in the overnight trade on Wall Street ended near the day’s low. Hong Kong’s Hang Seng is the worst impacted as it has slipped below the 24,500 mark, while China’s Shanghai Composite and Japan’s Nikkei was down by 0.82 per cent and 0.66 per cent, respectively. The market participants in Japan would look forward to cues from Bank of Japan’s monetary policy meet, which is due today.

Indian markets extended its upmove for the second consecutive trading session and ended the day with gains of nearly three-quarters of a percentage point. The market participants took note of the remarks given by RBI Governor Shaktikanta Das at FICCI meet, where he reiterated that the central bank is monitoring the economic situation and is prepared to take further measures as and when required to battle the crisis caused by the COVID-19 pandemic.

Nifty and Sensex closed above the mark of 11,600 and 39,300, respectively. India VIX, the measure of fear and volatility in the market dropped below 20 mark. A mixed trend was seen in the broader markets with Nifty Mid-cap adding 0.34, while Nifty Small-cap losing 0.02 per cent. On the sectoral front, the majority of the sectors ended in green wherein, Nifty Pharma and Nifty Auto were the top gainers, and on the flip side, Nifty Media ended as the top loser.

In overnight developments, barring Dow, which ended with meager gains, both the indices i.e. Nasdaq and S&P ended the day in the red. The main event of the day was the US Fed meeting, wherein it was decided that the interest rate would be kept unchanged and it also claimed that the rates would be low until 2023. Fed reiterated its vow to make use of all tools as its disposal to aid the economic rebound.

In the economic news, August retail sales data was below the estimate but on the other hand, homebuilder confidence jumped to a record high in September. The European indices ended Wednesday’s session with modest gains as the stocks retreated from the day’s high as traders preferred to lock in their profits ahead of Bank of England monetary policy, scheduled to be announced today.