MarketBuzz
1328: Marketbuzz Podcast with Kanishka Sarkar: Market likely to start lower amid US stocks selloff, banks in focus
Good morning everyone. Welcome back to CNBC TV18's Mark and Puss podcast. This is your host Kanishka Saikar bringing you top developments from around the world ahead up to base trading session. First up here is a quick recap. The Nifty ended one point higher yesterday, a solitary point. This is after a 250-point rally on the Nifty bank. On paper, it becomes the 14th straight day of gains for the index. But it also begs the question, has the Nifty finally reached the breaking point on the upside, at least the time being? It was an 80-point range that the Nifty traded in on Tuesday. Not once did it show any signs of moving any higher from the previous record high that it made. It opened above 25,300, but there was a bout it. In fact, Morgan Stoney wrote a note earlier in the day where it highlighted two fundamental and two technical factors that trigger a correction in the market. Among the two technical triggers that Morgan Stanley advises to keep an eye out are into the possibility that the retail investors shift focus to primary markets as the number of IPO surge and the other being that even as India remains the only poorly corrected global market, a sharp sell-off outside India, particularly in the US, could change things. However, it reiterated that a correction does not mean the end of a bull market. The brokerage believes that India's current bull market is only past the half-fay mark. Nagaraj Shetty of HDFC Securities remains optimistic, saying that this range-bound action will eventually result in an upside breakout of 25,400 over time. A decisive move above that will take the Nifty to 25,800 levels. The Nifty bank towards the star of the show on Tuesday. The index saw a spurt in the final few minutes of the trading session on Tuesday, courtesy of the Nifty financial services weekly expiry. The 250-point surge not only took the index past 51,500, but also placed it at the cost of the 51,700 on upside. Now, the Nifty bank will be in focus on Wednesday as well as it will be the weekly expiry. Among other stocks that will be in focus today include defence stocks, as the Defence Acquisition Council has approved 10 capital acquisition proposals worth 1.4-like crore rupees. GICRE will be in focus as the government is looking to divest 6.7% equity through an offer for sale. A.U. Small Finance Bank is submitted an application to the RBI to seek approval for voluntary transition from small finance bank to universal bank. Infraces will be tracked today as sources of Chelsea and VCTV18 that the upcoming GST Council meeting is likely to consider provisions to give relief to the company and other data hosting players. Also, Nazara Tech and Delta Copper will be in focus as sources say the upcoming GST Council meeting is likely to review amendments brought in Pakistano's online gaming and horse racing. The Fitment Committee has proposed to defer the industry request and clarity on past demands, seeking more data for a detailed examination of the matter. In terms of global queues, stocks in Asia sank after a plunge in NVDA cop shares a few of the worst day for U.S. equity since the August 5th route. Japan led the slump with Nikkei down nearly 4%, following a rally in the yen and the tech sell-off that also sent Taiwan's semiconductor manufacturing down 5.5% in one point. Meanwhile, oil-extended losses from Tuesday's decline of almost 5% as the possible easing of political unrest in Libya triggered worries about weak demand and hoversupply. A regional equity goal dropped as much as 2.2% while U.S. futures also fell in early Asian trading after the S&P 500 shed more than 2%. Hong Kong and mainland Chinese markets opened lower. The risk of mood came as the yen jumped and closely washed U.S. manufacturing gosh again missed for cars. With investors shifting focus towards the growth outlook from any Federal Reserve policy easing aimed at cushioning a slowdown. Further hurting sentiment was the weakness in tech stocks that rekindled concerns over undue investor frenzy about artificial intelligence. The S&P 500 and NASDAQ 100 saw their worst stats to a September since 2015 and 2002. With inflation expectations anchored, attention has shifted to the health of the economy as signs of weakness could speed up policy easing. While rate cuts tend to board welfare equities, that's not usually the case when the Fed is rushing to prevent a recession. Traders are anticipating that the Fed will renew rates by more than two full percentage points over the next 12 months and this will be the steepest drop outside of a downturn since the 1980s. The S&P 500 dropped to around 5,530 while the NASDAQ lost over 3% as Nvidia tumbled 9.5%, erasing $279 billion in a record one day wipeout for a U.S. stock. The U.S. Justice Department said subpoenas to Nvidia and other companies as it seeks evidence that the chipmaker violated antitrust laws. The focus will turn to key U.S. jobs report due later this week. The data is expected to show payrolls in the world's largest economy increased by about $1,65,000 based on the median estimate in a Bloomberg survey of economists. In another news, Starlink has backed track to comply with the order banning eggs in Brazil. There also seems to be a gold rush. Goldman Sachs has asked its clients to buy gold whereas Bufa sees gold heading to $3,000 in 2025. Kamala Harris is set to propose $50,000 tax deduction from small business startup expenses ahead of the Trump debate. Trump, on the other hand, said that he'll have no problem releasing Eabstin's client list once he is elected. On the domestic front, World Bank is up India's group outlook to 7% for Fi25 from 6.6% earlier. Meanwhile, the GST on snacks is to be aligned at 12% from 12% and 18%, following which FMCG players are likely to benefit. Lastly, West Bengal has passed the anti-ray bill prescribing death penalty for offenders. Well, that's about it for now. Stay tuned to CNBC TV18 for more news and news. This is Kanishka's like our signing off. Have a good trading session. [MUSIC]