The stock market today, Monday, August 26, is set to open higher in India amid strength in US stocks. The US market rallied after US Fed Chairman Jerome Powell signaled a likely rate cut in September during the Jackson Holes Symposium. GIFT Nifty futures were up 63.3 points at 24,918 at around 7:00 AM.
On Friday, the US markets edged higher with the S&P 500 finishing up 1.15 percent, the Nasdaq Composite up 1.47 percent, and the Dow Jones Industrial Average rising 1.14 percent.
In Asia-Pacific markets, there was a mixed performance after Hezbollah launched hundreds of rockets and drones at Israel, and Israel’s military responded by striking Lebanon with around 100 jets. Nikkei was down 1.19 percent, Kospi was up 0.26 percent, ASX 200 was up 0.43 percent, Hang Seng was unchanged, and Shanghai was flat with a negative bias.
Market participants are keeping an eye on the latest readings of the US Federal Reserve’s inflation data, hoping it will pave the way for rate cuts in the United States and Europe. They are also mulling the outlook for Japanese interest rates after Bank of Japan Governor Kazuo Ueda reaffirmed his resolve to raise interest rates if inflation stays on course.
Last Friday, FTSE announced various inclusions and exclusions in its FTSE All World Index and FTSE Large-Cap Index. Inclusions in the Large-Cap index include Bharat Dynamics, Dixon Technologies, Mazagondock Shipbuilders, Oil India, PB Fintech, and The Phoenix Mills among others. The NSE also announced changes to the benchmark Nifty 50 index, effective from September 30, with Tata Group’s Trent and Bharat Electronics (BEL) being added and LTI Mindtree and Divi’s Laboratories being removed.
Analysts have varying views on today’s (August 26) trading session. Jatin Gedia from Sharekhan by BNP Paribas advises caution on longs as the Nifty’s upmove appears overextended. Osho Krishan from Angel One Ltd sees potential for another lifetime high in the benchmark but warns against complacency. Nagaraj Shetti from HDFC Securities notes a lackluster movement near resistance levels but anticipates an upmove towards 25000-25100 levels in the near term.
In terms of FII and DII activity on August 23, FIIs were net buyers of Indian equities worth Rs 1,944.48 crore, while DIIs were net buyers of equities worth Rs 2,896.02 crore.
In the IPO space, Interarch Building Products will be listed on bourses today after being subscribed 93.79 times. Indian Phosphate’s IPO subscription window worth Rs 67.36 crore will open today, while Resourceful Automobile’s IPO subscription window will close on BSE SME. Forcas Studio and Brace Port Logistics IPOs will also be listed on NSE SME today.
On Friday, Indian shares rose for a seventh straight session, their longest rally this year, with the NSE Nifty 50 index up 0.05 percent at 24,823.15 and the S&P BSE Sensex adding 0.04 percent to 81,086.21.
Overall, the stock market today presents a mix of global and domestic factors influencing trading sentiment, with market participants closely monitoring developments for potential opportunities and risks.