MarketBuzz
1329: Marketbuzz Podcast with Kanishka Sarkar: Market likely headed for gap-up start, Reliance shares in focus
(upbeat music) - Good morning, everyone. Welcome back to CNBC TV18's Market Bus Podcast. This is your host, Kanishka Sahkar bringing you top developments from around the world ahead of today's trading session. First up, here's a quick recap. Like they say, all good things come to an end, so did the NFT's record-breaking run. Wednesday's session finally brought an end to the 14-day rally, as the last three sold off in line with the meltdown seen in global equity and markets overnight. However, yesterday's drop was nowhere as significant as that seen either on Wall Street the previous night or across the Asia Pacific on Wednesday morning. It can go down as just another day in the office where the index saw some profit-booking at higher levels after having had a non-stop run in one direction. The NFTI recovered more than 100 points from the lows of the day as the index found support just below 25,100 and reversed from those levels. For the remaining week, of course, a lot will depend on how Wall Street moves overnight ahead of all the important jobs day down Friday. Thursday is also the weekly expiry for the NFTI, its first for the September series, and that will also have a part to play in the index moves. Regardless of the external factors, 25,000 remains a very crucial level for the NFTI on the downside. There is a level echoed by most chartists on the street. The NFTI is not closed below the 25,000 mark since August 23rd. Currently, a domestic queues lag with stock and sector-specific moves continue, particularly within the broader markets. The US markets sell off a drag IT lower on Wednesday, which can also be in line after the run-up seen recently, while metals turned out to be a drag after a fresh economic hose arose out of China. This morning, the NFTI was trading with the premium of more than 100 points from NFTI futures Wednesday queues, indicating the gap up start for the Indian market. One of the key stocks to watch today is the index heavyweight reliance industries, as the heavy industry ministry has awarded it 10 GWH capacity under the PLI advanced chemistry sales scheme. Alliance Industries Board is also set to meet today to consider a one-is-to-one issue of free shares. This means shareholders will be eligible to receive one free share for every one share they have had as of recorded. Sonar BLW shares will be in focus as confirming to CNBC TV AT Newsbreak, the company has launched a QRP to raise 2,400 crore rupees. GICRE will be tracked as the government is set to exercise the over-subscription option in the OFS today. Meanwhile, Ikra has upgraded Vedanta rating for the long-term to AA from AA-minus. Now, century textiles is also set to give a corporate guarantee of up to 400 crore rupees to Hindalco for land it's honey. Suzanne has signed a conveyance deed for OE Business Park for sale of one earth property for 440 crore rupees. HDFC Bank will be in focus as the private bank is moving ahead with its plan to take its non-banking arm, that is, HDB financial services, public with a potential listing targeted for December, or at the latest by the end of the current financial year. The IPO, likely a combination of secondary sale and fresh capital, is expected to fetch a valuation of roughly seven to eight billion dollars. Lastly, P&B Housing Finance has said that its board of directors will convene on Monday, that is September 9th to deliberate on and potentially approve the issuance of non-convertible debentures up to 2,500 crore rupees. Now, looking at some global queues, Asian stocks regain some ground this morning after a global sell-off, as traders awaited this week's U.S. payrolls data to gosh the extent of the federal results easing. The dollar studied the MSCI Asia-Pacific index rose half a percent after falling more than 2% on Wednesday, its biggest rub since August five-round. South Korea's costly jump more than 1% led by a rebound in the shares of chip maker. Japan's benchmark fluctuated following the yen strength. Global financial markets have displayed out-sized reactions to U.S. economic data as doubts grow over the Fed's ability to engineer a soft landing. Skepticism over the artificial intelligence hype has also hurt risk assets, with NVIDIA COP seeing its worst 2-day plan since October 22. Now, the focus now turns to U.S. payrolls data, that is due Friday, one of the most important data points before Fed's decision later this month. Elsewhere, China is considering cutting interest rates on as much as $5.3 trillion of mortgages as authorities attempt to shore up the battered property market and economy. JPMorgan Chase has dropped its buy recommendation for the nation's talk citing weak policy support and potential volatility linked to the U.S. presidential election. Overnight in the U.S., the S&P 500 and NASDAQ composite fell for the second straight session in a lackluster start to September. The S&P 500 lost 0.16% while the NASDAQ composite slipped 0.3%. The Dow Jones industrial average was the outlier urging up 38.0.09%. NVIDIA fell almost 2% following a Bloomberg report that the U.S. Justice Department sent subpoenas to the chip maker. The move comes after NVIDIA tumbled more than 9% Tuesday, amid a broad up pullback in semiconductors. Some mega-cap technology and chip stocks regained their footing Wednesday, with advanced micro devices and Tesla rallying about three and 4% each, meta-platforms, mobile technology, Broadcom and Qualcomm-Edged higher as well. With the Fed set to begin cutting rates in a few weeks, the main question now is, how big the first reduction will be? Monthly U.S. employment data due Friday will help determine the answer. The Jobs report last month took growth fears and Chair Jerome Powell has made it clear that the Fed is now more concerned about risks to the labor market than inflation. In commodities, oil steady near the lowest close since June 2023, as an industrial report pointed to a big draw in U.S. growth stockpiles, meanwhile, gold traded at around $2,495 after finding support following the U.S. job opening data. In other news, Kamala Harris has revealed a 28% capital gains tax plan that is softening a Biden's proposal. Canadian PM Justin Trudeau has weakened after main ally, unexpectedly pulled out support. U.S. has seized websites allegedly used by Russia to spread election disinformation. Johnson & Johnson has added $1.1 billion to propose tax settlement. Meanwhile, General Motors is to launch its first ethanol capable hybrid flex vehicles in Brazil. In domestic news, Prime Minister Modi was welcomed to Singapore with Trump deeds and investment promises yesterday. The government debated allowing FDI from China as ministers were divided. While the government has proposed 12% tax to curb Chinese seal imports, the industry wants more. Meanwhile, Sebi has cited external influence behind allegations of toxic work environment. The government will also take up power with UAE on the rise in gold and silver imports into India. Lastly, the government has launched blockchain as a service. Vishwa said blockchain technology stack. It is a framework offering blockchain as a service through a geographically distributed infrastructure. The new framework aims to strengthen digital trust and service delivery. Well, that's about it for now. Stay tuned to see NBC deviating for more news and news. This is Kanishka Sarkar signing off. Have a good trading session. [MUSIC PLAYING] (upbeat music) [BLANK_AUDIO]