Top 10 things to know before the market opens

The benchmark Sensex and Nifty indices are likely to open marginally higher on August 30 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 24 points.

The BSE Sensex gained 80 points to end the previous session at 65,075 points, while the Nifty50 closed 36 points higher at 19,342 points, trading near its 200-day moving average of 19,589 points and trying to sustain the ongoing momentum.

The pivot point calculator indicates that the Nifty may get support at 19,317, followed by 19,301 and 19,274. In case of an upside, 19,370 can be the key resistance, followed by 19,386 and 19,412.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.

GIFT Nifty

The GIFT Nifty indicates a marginally positive start for the broader index with a gain of 24 points. GIFT Nifty futures stood at 19,532 points.

Trade setup for Wednesday: Top 15 things to know before the opening bell

US Markets

Stock futures traded flat on Tuesday night India time after another positive session, marking the latest leg in an end-of-month rally as investors try to mitigate August losses. Futures tied to the Dow Jones Industrial Average gained 28 points, or 0.1 percent. S&P 500 futures and Nasdaq 100 futures also both hovered around 0.1 percent higher.

The moves followed a third consecutive winning session on Wall Street as investors made up some ground at the end of the month. The technology-heavy Nasdaq Composite added 1.7 percent in the session. The S&P 500 rose about 1.5 percent, notching its best performance since June. The Dow climbed nearly 0.9 percent, which equates to a gain of more than 290 points.

Tuesday’s wins come on the back of data signaling the economy could be slowing. A Conference Board consumer sentiment index came in at 106.1, under the consensus estimate of 116 from economists polled by Dow Jones. Data from the US Bureau of Labor Statistics showed a decline in open job listings in July.

The two-year Treasury yield dropped on Tuesday. Any indication of a cooling economy can buoy investor hopes that the Federal Reserve could lighten its policy stance.

“Tuesday’s move goes back to a ‘bad news is good news’ type environment, which tends to be the case when investors are worried about rates and Fed policy,” said Sonu Varghese, global macro strategist at Carson Group. “Any softness in economic data results in less upward pressure on yields, and that helps equities.”

European Markets

European stock markets closed higher on Tuesday, tracking global counterparts as investors look ahead to a fresh round of economic data this week. The pan-European Stoxx 600 index ended 1 percent higher, with all sectors and major bourses in positive territory. Mining stocks added 2.1 percent to lead gains. Major European indices advanced on Monday, though UK markets were closed for a public holiday.

Shares in Asia-Pacific rose overnight, building on the positive Monday session, as Hong Kong and mainland Chinese stocks led gains. The momentum came after a winning day on Wall Street — a rarity in recent weeks — and the US stocks gained  again on Tuesday.

Investors also continue to try to chart the course of monetary policy, after Federal Reserve Chairman Jerome Powell reiterated on Friday that the central bank could hike interest rates further, if inflation does not return to target. While Powell said the Fed could be flexible, he added it still has further to go to fight inflation.

“Although inflation has moved down from its peak — a welcome development — it remains too high,” he said in prepared remarks. “We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

Asian Markets

Asia-Pacific markets are set to mostly rise, largely mirroring moves on Wall Street as US stocks saw a Nvidia-fueled tech rally on Tuesday. Investors will be bracing for Australia’s inflation numbers for July, which are expected to come in at 5.2 percent, according to a Reuters poll — softer than the 5.4 percent seen in June. The Australian S&P/ASX 200 climbed 0.61 percent in early trade.

Japan’s Nikkei 225 is on pace for its third straight day of gains, opening 0.61 percent up, while the Topix also extended gains and rose 0.56 percent. South Korea’s Kospi led gains in the region among major indices, advancing 0.81 percent, while the Kosdaq was up 0.98 percent.

Futures for Hong Kong’s Hang Seng index stood at 18,669, pointing to a stronger open and on pace for its third straight day of gains compared with the HSI’s close of 18,484.03.

SoftBank to sell 1.17% stake in Zomato for Rs 940 crore via block deal: Sources

SoftBank Vision Fund  (SVF Global) is likely to offload 1.17 percent stake it holds in food delivery giant Zomato for Rs 940 crore via a block deal, CNBC TV-18 reported on August 29, citing sources.

A total of 10 crore shares will be sold by SVF Growth Fund, at a price of Rs 94 apiece, the sources added. Meanwhile, in the trading session on August 29, Zomato’s scrip settled at Rs 94.65 apiece on the BSE, which was 2.51 percent higher as against the previous day’s close. Kotak Securities will be broker to the deal, the report added.

A day earlier, Zomato’s stock had opened 5 percent higher on the exchanges, after 184 million shares, worth a 2.14 percent stake, were reported to have changed hands in a block deal.

Sebi slaps Rs 45 lakh penalties on 9 entities for non-genuine trades

Capital market regulator Sebi on Tuesday levied penalties totalling Rs 45 lakh on nine entities for indulging in non-genuine trades in the illiquid stock options segment on BSE. In nine separate orders, the regulator imposed a fine of Rs 5 lakh each on Vivek Company, Soundlight Projects, S R Realbuild, Srijan Dealers, Manomay Dealmark, Zodiac Vanijya, VKJ Trexim, Hans Homes and Guruteg Bahadur Rice Mill.

The orders came after Sebi observed large-scale reversal trades in the illiquid stock options segment on BSE, leading to artificial volumes on the exchange. Thereafter, it conducted an investigation into the trading activities of certain entities engaged in the segment from April 2014 to September 2015.

SEBI should cut IPO timelines, allow brokers as underwriters: Raamdeo Agarwal

The Securities and Exchange Board of India (SEBI) should take steps to simplify the rules surrounding initial public offerings (IPOs), including clearance and underwriting timelines, to ease the supply situation within the equity markets, said Raamdeo Agarwal, Chairman of Motilal Oswal Financial Services.

“Such actions would undoubtedly have a positive impact on the Indian economy,” Agarwal told Moneycontrol in an exclusive interview on the sidelines of the 19th Global Annual conference.

He emphasized that SEBI should facilitate the underwriting process by allowing banks and brokers to function as underwriters, rather than being confined to roles of lead bankers. Currently, the underwriting rule only comes into play when the minimum threshold of the IPO, excluding the anchor book, remains unsubscribed.

CPS Shapers IPO subscribed 15.32 times on debut

We have seen robust demand for CPS Shapers IPO on the first day of bidding, August 29. The public issue has subscribed 15.32 times, getting in bids for 91.9 lakh shares against the offer size of 6 lakh shares. Retail investors seem gung-ho on the SME issue, buying 27.34 times the allotted quota, while the reserved portion of high-net-worth individuals was booked 4.97 times, as per the subscription data available on the exchange.

The shapewear maker intends to mop up Rs 11.1 crore via maiden public issue of 6 lakh shares, at a price of Rs 185 per share, comprising only fresh issue. It is a fixed price issue. The company has reserved 31,200 equity shares for the market maker, which is 5.2 percent of total issue size. The remaining 5,68,800 shares are divided equally (2,84,400 shares each) between retail investors and high net worth individuals.

Oil Prices

Oil prices edged higher on Tuesday as Hurricane Idalia intensified as it headed towards Florida’s Gulf Coast, threatening to hit crude oil supplies in an already tightening market. Brent crude oil futures rose 34 cents, or 0.4 percent, to $84.76 a barrel, while the U.S. West Texas Intermediate futures rose 36 cents, or 0.5 percent, to $80.46 a barrel.

Idalia strengthened on Tuesday as it headed towards Florida after skirting past Cuba. The weather system is expected to slam ashore on Wednesday when it is likely to cause power outages and could hit crude production. U.S. oil producer Chevron evacuated staff from three Gulf of Mexico oil production platforms ahead of the hurricane.

Supply concerns have also been heightened by a fire at a Marathon Petroleum refinery last week after a chemical leak ignited two giant storage tanks filled with naphtha. On Monday, the company said it planned to restart units at the 596,000 barrel per day (bpd) refinery in Garyville, Louisiana, the third-largest in the United States.

Dollar Index

The Dollar index traded 0.06 percent lower in futures at 103.59, whereas the value of one dollar hovered near Rs 82.60.

Gold Prices

Gold climbed to a three-week peak on Tuesday as the dollar and Treasury yields slipped after weaker labour market readings cast doubts over the chances of another rate hike by the Federal Reserve. Spot gold was up 0.9 percent at $1,935.95 per ounce. US gold futures also rose 0.9% to $1,964.20.

The dollar fell against its rivals, reversing earlier gains, after data showed that US job openings fell in July. The benchmark 10-year Treasury yields also ticked lower. The downbeat Job Openings and Labor Turnover Survey (JOLTS)and consumer confidence reports suggest the Fed may not raise rates as…