Indian Shares Rise At Pre-Open As Benchmarks Set For Positive Start After Four Sessions Of Losses

Mumbai, September 4: Indian shares rose at pre open pointing to a positive start for benchmarks which have been on a four session losing streak as comments from a US Federal Reserve official reduced fears of a rate hike later this month. 

Nifty 50 rose 0.16% and Sensex advanced 0.67% at pre open.  

The Nifty 50 and BSE Sensex are down 1.3% and 1.4%, respectively, for the week and are headed for their fourth straight weekly decline, weighed down by elevated crude oil prices and higher bond yields.  

Equities have faced additional pressure from uncertainty around the new closing-auction framework, while heavy activity in the primary market has also diverted liquidity.  

The Securities and Exchange Board of India said on Thursday it would reassess the methodology used to calculate derivatives settlement prices after receiving feedback on the closing auction process in the cash equity market.  

Foreign investors were sellers, offloading shares worth Rs 235 crore ($24.87 million) on Thursday, according to provisional exchange data.  

Spotlight will fall on Gland Pharma after media reports said Fosun Pharma may offload up to a 5% stake in the drugmaker through a block deal worth about Rs 2,280 crore.  

Power Grid Corporation of India may attract attention after it was named the successful bidder for an inter-state transmission project in Gujarat.  

Cipla said its subsidiary has entered into an exclusive licensing deal with China’s Qilu Pharmaceutical for a U.S. launch of a biosimilar version of Merck’s cancer drug Keytruda. 

Asian markets rise on softer Fed outlook 

Asian shares climbed on Friday as investors grew more confident that the U.S. Federal Reserve could keep interest rates steady, following comments from Fed Governor Christopher Waller that reinforced expectations for a less hawkish policy stance. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.07%, while Japan’s Nikkei gained 0.86%, South Korea’s Kospi advanced 1.17% and Hong Kong’s Hang Seng jumped 2.2%. 

The gains came as investors reassessed the outlook for U.S. monetary policy, with attention shifting towards signs of cooling inflation and a potentially weaker labour market. 

The dollar weakened, while U.S. Treasury yields were little changed, boosting the appeal of riskier assets and offering support to emerging-market equities. 

The upbeat regional cues are likely to provide an early lift to Indian benchmarks following recent volatility. 

Wall Street rallies; futures subdued 

U.S. stocks ended sharply higher on Thursday as investors reassessed the Federal Reserve’s policy outlook. The Dow Jones Industrial Average rose 1.18%, the S&P 500 gained 1.06% and the Nasdaq Composite advanced 1.40%. 

The rally was led by technology shares as investors responded to the shifting expectations around U.S. interest rates. 

However, U.S. stock futures were subdued in early Asian trading on Friday, suggesting some caution following the previous session’s strong gains. Dow Jones futures were largely flat. 

Investors are now awaiting the U.S. nonfarm payrolls report, which could offer fresh clues on the Fed’s policy path. 

A weaker-than-expected jobs report could reinforce expectations of a less restrictive monetary policy and support emerging-market equities, while stronger data could revive concerns over interest rates. 

Oil prices remain a headwind 

Crude oil remains a key risk for Indian markets, with prices holding at elevated levels amid geopolitical tensions and concerns over supply disruptions. 

Brent crude rose 0.4% to $95.9 a barrel, while U.S. West Texas Intermediate crude also remained elevated. 

Sustained strength in oil prices could weigh on sentiment towards oil-importing economies such as India. Higher crude prices can widen India’s trade deficit, pressure the rupee and raise input costs for industries including aviation, paints, chemicals and logistics. 

Elevated oil prices could also complicate the inflation outlook and limit the room for monetary easing. 

Upstream oil producers, however, could benefit from stronger crude prices. 

Source

•  Exchanges