Top News

The Stock market today opened higher on Thursday, September 3, as Indian equities turned positive after a weak run, helped by softer US bond yields and strong foreign exchange inflows. The BSE SENSEX rose 238.86 points, or 0.31 per cent, to 76,809.21, while the NSE NIFTY 50 gained 64.40 points, or 0.27 per cent, to 23,978.85. GIFT Nifty was also up 0.45 per cent at 24,072.50. The opening move comes as investors track global rates, foreign flows, the rupee and the outlook for corporate earnings.

Stock market today gets support from softer US yields and stronger rupee outlook

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “The market sentiment is likely to look up today following the slight easing of the US bond yields. A big positive from the rupee perspective is the huge mobilisation of USD 136 billion under concessional swap facility. The USD 127 billion mobilised under the FCNR(B) scheme has come way above the consensus estimates.”

He said the large inflows could help stabilise the rupee and improve confidence among foreign investors. “With improving growth and earnings prospects, FIIs are likely to continue buying in India, despite the elevated US bond yields. Also, the huge FCNR(B) mobilisation by banks will help improve their NIMs. This is positive for banking stocks.” The Stock market today is therefore being watched closely for signs of sustained FII buying.

Stock market today eyes reversal after heavy retail-led selling

Vijayakumar also pointed to an unusual feature of Wednesday’s decline. “An interesting feature of yesterday’s market decline is that the 141 point dip in Nifty happened despite a Rs 9500 crores of institutional buying, with FIIs buy figure of Rs 6688 crores and DII buy figure of Rs 2812 crores. So, it is obvious that the brunt of the selling came from retail investors, proprietary traders and bears who used the market weakness to hammer the stocks down. This is likely to reverse today,” he said.

The Stock market today will also reflect how investors respond to the currency and banking outlook. Strong FCNR(B) mobilisation is expected to support banks’ net interest margins, while a steadier rupee could make Indian equities more attractive to foreign investors.

Stock market today tracks gold and crude as Middle East risks ease

In commodities, gold stood at USD 4,427.09, up 0.90 per cent. Brent crude traded at USD 95.48 a barrel, while crude oil was at USD 90.97 a barrel. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said gold ended a three-session decline after President Trump indicated that the latest US military action against Iran would likely be short-lived.

Stock market today awaits US data and Fed signals

Modi said the comments reduced fears of a prolonged Middle East escalation, cooling oil’s recent rally and concerns that higher energy costs could lift inflation and push the Federal Reserve towards tighter policy. He added that softer private payroll growth and New York Fed President John Williams’ comments on easing inflation also helped balance expectations. “With the Fed meeting approaching, investors will now closely track upcoming US labor-market and inflation data for further direction on rates and bullion,” he said. The Stock market today will remain sensitive to these global cues.

(with inputs from ANI)

The post Stock Market Today: Sensex, Nifty Turn Green As US Bond Yields Ease, Strong Forex Inflows Boost Sentiment appeared first on NewsX.