Nifty and Sensex Likely to Open Higher Following Global Cues and GST Reforms Support Sentiment

Pre-Market Update at 7:45 AM: Indian equity markets are expected to start on a positive note on Friday, September 5, supported by global cues and optimism from GST reforms. At 7:14 AM, the GIFT Nifty was trading near 24,882, up 59 points, indicating a higher opening for benchmark indices Sensex and Nifty 50.

On Thursday, September 4, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 106.34 crore. Domestic Institutional Investors (DIIs), on the other hand, were active buyers, purchasing shares worth Rs 2,233.09 crore. Such flows continue to play a key role in the movement of Large-Cap, Mid-Cap, and Small-Cap segments.

The Nifty 50 index ended with a modest gain of 0.08 per cent at 24,734.30, after giving up most of its intraday gains driven by GST reform optimism. The Bank Nifty settled nearly unchanged at 54,075.4. Sector-wise, Auto and FMCG stocks contributed positively, while Oil & Gas, Realty, and Metals declined. Mid-cap and small-cap indices closed lower by nearly 0.7 per cent.

US markets closed in positive territory on Thursday, with the S&P 500 finishing at a record high of 6,502.08, up 0.83 per cent. The Dow Jones Industrial Average gained 350.06 points, or 0.77 per cent, to close at 45,621.29, while the Nasdaq Composite climbed 209.97 points, or 0.98 per cent, to 21,707.69. Meanwhile, US President Donald Trump signed an executive order to implement the US-Japan trade deal. Under the agreement, tariffs on Japanese automobiles will be reduced to 15 per cent from the earlier 27.5 per cent, while many other categories of goods will also see tariff caps at 15 per cent.

Fresh unemployment benefit applications in the US rose more than expected, with jobless claims increasing by 8,000 to 237,000 for the week ending August 30. In Japan, household spending rose 1.4 per cent year-on-year in July, below expectations of 2.3 per cent. However, on a seasonally adjusted monthly basis, spending grew 1.7 per cent, surpassing estimates of 1.3 per cent.

Crude oil prices declined for the third straight session ahead of the OPEC meeting. Brent futures slipped 0.27 per cent to USD 66.81 per barrel, while US WTI futures edged down 0.24 per cent to USD 63.33. Gold continued its upward momentum, rising 0.2 per cent to USD 3,552.66 per ounce. The yellow metal is on track for a 3 per cent weekly gain, the strongest since mid-June, as investors sought safe-haven assets amid global trade concerns.

For today, RBL Bank will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.