The Indian markets ahead of the US Fed meeting is expected to open on a flat note. The Fed will release a policy statement along with the economic and interest rate forecasts at the end of its two-day meeting Wednesday afternoon. The central bank is widely expected to indicate it is getting ready to announce it will start paring back its $120 billion in monthly purchases of Treasuries and mortgage-backed securities.
At 0706 hours IST, the Nifty futures on Singapore Exchange traded 18.5 points, or 0.11 per cent, lower at 17,543, signaling that Dalal Street was headed for a negative start on Wednesday. The US stock market ended near flat on Tuesday with worries over troubles at developer China Evergrande and caution ahead of Wednesday’s Federal Reserve policy. The Dow Jones Industrial Average fell 50.63 points, or 0.15 per cent, to 33,919.84, the S&P500 index lost 3.54 points, or 0.08 per cent, to 4,354.19 and the Nasdaq Composite added 32.50 points, or 0.22 per cent, to 14,746.40. However, just like the wall street which was in cautious mode ahead of the meeting, Asian markets were behaving in the same manner, the Asian stock markets made a cautious start, Japan’s Nikkei fell 0.5 per cent. Equity, bond and currency markets in China open for the first time on Wednesday since concern over Evergrande’s predicament triggered a wave of selling and contagion worries around the world. Singapore-traded FTSE China futures are about 2 per cent below Friday’s closing level.
“US equities finished mixed yesterday with Dow and S&P 500 extending losses for the fourth consecutive day as investors remained wary ahead of Fed meeting outcome and possible fallout from Evergrande’s defaults,” Binod Modi, head strategy at Reliance Securities said.
“Notably, September month has been quite volatile so far as expected and concerns with regards to rising delta variant of Coronavirus and resultant impact on economy and likely downgrade in corporate earnings may continue to prevail in coming weeks as well. It clearly appears that goldilocks periods of global equities are over now, wherein global equities witnessed secular run over the last more than one year. Further, concerns with regards to Evergrande and contagion effects of the same are likely to remain as overhang for global markets in the near term. Notably, all eyes on the FOMC meeting outcome today,” Modi added.
However, on the Equity indices on Tuesday, the 30-share BSE Sensex gained momentum in late-afternoon trade to close 514.34 points or 0.88 per cent higher at 59,005.27. On similar lines, the broader NSE Nifty surged 165.10 points or 0.95 per cent to 17,562.
Here are some stocks that would be in focus today:
MTAR Technologies: The company received NADCAP Certification for its 100% EOU & Unit 5 in Telangana for 12 months until November 2022.
Infosys: IT services major Infosys NSE 1.81 per cent on Tuesday announced its collaboration with digital workflow company ServiceNow to provide enterprise-level service management for customers in manufacturing industries.
Torrent Power: The company entered into a share purchase agreement to acquire 100% stake in Surya Vidyut at an enterprises value of Rs 790 crore.
Nucleus Software: The company’s Board will consider buyback of shares on Friday this week.
KEC International: The company has secured new orders of Rs 1,157 crore across its various businesses.
Surya Roshni: The company has received an order of Rs 41.22 crore for implementation of smart LED street lights and installation of a centralized monitoring system with operation and maintenance from Greater Noida Industrial Development Authority (GNIOA).
Vikas Lifecare: The company announced that its Agro products division has received the largest single export order to date, amounting $1 million.
Shriram City Union Finance: The company announced that Acacia II Partners LP & Others sold 3 lakh equity shares in the company via open market transaction, reducing shareholding to 3.01 per cent from 3.46 per cent earlier.