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Category : Market Commentary
Headline : Pre Session- Sensex, Nifty likely to open higher on Monday
Date and Time : Sep-23-2019 08:37

The Indian benchmark indices are likely to open higher on Monday. Trends in the SGX Nifty Index Futures for September delivery, which were trading at 11,484.00, up by 144.00 points or 1.27 per cent, at 10:58 AM, Singapore Time, also indicated a positive start for local bourses.

Markets had jumped 5 per cent on Friday after Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates, and experts say there is a scope for the markets to rally another 5 per cent from current levels.

Experts feel, the possibility of some consolidation or profit booking could be possible after a sharp run-up, but the sustenance of 50-day moving average (11,117) going forward can take Nifty to higher levels.

Markets in India witnessed their biggest movement in 10 years following Finance Minister Nirmala Sitharaman's mini-Budget, which many D-Street analysts dubbed as a 'Diwali gift' to corporates and investors.

Foreign investors have pulled out a net sum of Rs 4,193 crore from the Indian capital markets in September so far, but the trend is expected to reverse on the back of fiscal relief measures announced by the government.

US stocks dipped on Friday, and also finished the week lower, after a Chinese agriculture delegation cancelled a planned visit to Montana, dampening optimism about US-China trade talks.

The Dow Jones Industrial Average fell 0.59% to end the week at 26,934.46 points, while the S&P 500 lost 0.49% to 2,991.99. The Nasdaq Composite dropped 0.8% to 8,117.67. For the week, the S&P 500 fell 0.52%, the Dow lost 1.05% and the Nasdaq declined 0.72%.

Stocks in Asia started higher on Monday on hopes of an interim Sino-US tariff deal after the two countries described their talks as “productive” and “constructive”, while oil gained more than 1% as Middle East tensions remained elevated.

On the currency front, the rupee on Friday rose by 40 paise to settle at 70.94 to the US dollar after forex market sentiment was buoyed by the government decision to slash corporate taxes.

On the corporate front, Torrent Pharmaceuticals is expanding its voluntary recall for tablets used to control hypertension in the US due to detection of traces of N-Methylnitrosobutyric acid.

Top traded Volumes on NSE Nifty – YES Bank Ltd. 398347296.00, Tata Motors Ltd. 89223235.00, State Bank of India 84481749.00, ICICI Bank Ltd. 75217723.00, ITC Ltd. 63568127.00,

On NSE, total number of shares traded was 35.50 Crore and total turnover stood at Rs. 82138.37 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 1239086 with a total turnover of Rs. 86029.81 Crore. Along with this total number of contracts traded in stock futures were 2380830 with a total turnover of Rs. 136260.36 Crore. Total numbers of contracts for index options were 23749135 with a total turnover of Rs. 1636349.05 Crore. and total numbers of contracts for stock options were 2301323 with a total turnover of Rs. 137615.15 Crore.

The FIIs on 20/09/2019 stood as net buyer in equity and debt. Gross equity purchased stood at Rs. 2523.30 Crore and gross debt purchased stood at Rs. 1656.21 Crore, while the gross equity sold stood at Rs. 3268.08 Crore and gross debt sold stood at Rs. 1364.02 Crore. Therefore, the net investment of equity and debt reported were Rs. -744.78 Crore and Rs. 292.19.