Nifty and Sensex Likely to Open Lower as US-India Trade Talks Resume; Fed Rate Cut Expected
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
As of 7:12 AM, the GIFT Nifty was trading near 25,161, down 19 points, reflecting a muted start.
Pre-Market Update at 7:30 AM: On Tuesday, September 16, the Indian equity market benchmarks, the Sensex and Nifty 50, are expected to open lower with caution. India is set to resume trade discussions with the US, with Washington’s chief negotiator Brendan Lynch scheduled to meet Rajesh Agrawal, special secretary in the commerce department, to advance bilateral trade negotiations.
As of 7:12 AM, the GIFT Nifty was trading near 25,161, down 19 points, reflecting a muted start. The Federal Open Market Committee (FOMC) is widely expected to cut interest rates by 25 basis points during its meeting on September 16–17. Asian markets traded mixed, while US markets closed higher on Monday.
On Monday, September 15, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,268.59 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 15th straight session, purchasing shares worth Rs 1,933.33 crore.
The Indian equity market closed weaker on September 15, ending a winning streak. The BSE Sensex declined by 119 points, or 0.15 per cent, to 81,786, while the NSE Nifty 50 slipped 45 points, or 0.18 per cent, to 25,069, falling below the 25,100 mark. The correction came as investors awaited signals from the Federal Reserve’s policy outcome. India’s unemployment rate eased to 5.1 per cent in August, down from 5.2 per cent in July and 5.6 per cent in June, as per the Periodic Labour Force Survey (PLFS).
On Monday, US markets closed higher with the S&P 500 and Nasdaq hitting record intraday levels. The Dow Jones Industrial Average added 49.23 points, or 0.11 per cent, to 45,883.45. The S&P 500 gained 30.99 points, or 0.47 per cent, to 6,615.28, while the Nasdaq advanced 207.65 points, or 0.94 per cent, to 22,348.75. Investors are now focused on the FOMC meeting, with rising expectations of a 25-basis-point rate cut amid labor market concerns. US President Donald Trump also said trade talks with China had “gone very well” and hinted at a potential deal addressing US concerns over TikTok’s ownership.
Gold hovered near record levels at around USD 3,670 per ounce ahead of the Fed’s meeting. Crude oil prices stayed firm, with Brent futures trading near USD 67.5 per barrel and WTI around USD 63.3 per barrel, supported by concerns over supply disruptions from Ukrainian strikes on Russian infrastructure and increased US pressure on buyers of Russian crude.
For today, RBL Bank, HFCL, Angel One and Oracle Financial Services Software will remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.