How Did the US Markets Fare on Tuesday?
On Tuesday, the US markets experienced a significant drop, marking the beginning of what is historically one of the toughest months for the market. The Dow Jones fell by 1.51%, the S&P 500 dropped by 2.12%, and the Nasdaq Composite plummeted by 3.26%.
What About Asian Markets Today?
The Asia-Pacific markets followed the lead of US markets and traded lower. As of the last tally, Japan’s Nikkei was down by 3.74%, Australia’s ASX 200 dipped 1.87%, Hong Kong’s Hang Seng fell by 1.43%, and China’s Shanghai Composite was down by 0.57%.
Brent Crude Oil Dips Below $74 per Barrel
On the commodity front, Brent crude oil was down by 0.42%, priced at $73.44 per barrel as per the last update.
Today’s IPO Watch
Main Board IPO
Gala Precision Engineering’s initial public offering (IPO) will close today. By the second day of bidding, the IPO had been subscribed 52.17 times. According to NSE data, it received bids for 11,602,264 shares against the 2,223,830 shares on offer. Today also marks the listing of shares for ECOS (India) Mobility & Hospitality on both NSE and BSE. This IPO was notably oversubscribed 64.26 times, with the highest demand coming from Qualified Institutional Buyers (QIBs) at 136.85 times and Non-Institutional Investors (NIIs) at 64.37 times.
NSE and BSE SME IPOs
The Mach Conferences and Events IPO will open for subscription today on the BSE under the SME category. The issue is priced at Rs 125.28 crore, including a fresh issue of 2.23 million shares amounting to Rs 50.15 crore and an offer for sale of 334,000 shares totaling Rs 75.13 crore. The Namo eWaste Management Solutions IPO also opens today on NSE under the SME category. This IPO is entirely a fresh issue of 6.02 million shares, amounting to Rs 51.20 crore. Additionally, the Jeyyam Global Foods IPO’s subscription window closes today. This issue includes a fresh issue of 12.08 million shares amounting to Rs 73.74 crore and an offer for sale of 1.34 million shares for Rs 8.19 crore. Shares of Aeron Composite and Paramatrix Technologies will likewise be listed on NSE under the SME category today.
Key Global Triggers
US investors are eyeing the release of import and export data for July. The upcoming US payroll report, scheduled for release on Friday, September 6, is also significant as it may influence whether a predicted rate cut this month will be standard or larger. In the Asia-Pacific markets, today’s key points include the release of S&P Global PMI for August in Singapore and Q2 GDP data in Australia. Back home in India, investors will focus on the HSBC composite and service PMI data for August.
Analysts’ Views on Today’s Trading Session (September 3)
Shrikant Chouhan, Head of Equity Research, Kotak Securities
“We believe the current market texture is non-directional, with traders possibly waiting for a breakout on either side. For today, 25,350 and 82,900 are the immediate breakout levels. A rally could extend to 25,450-25,500 or 83,300-83,500. Conversely, if the market drops below 25,200 or 82,300, it may trigger an intraday correction, possibly reaching 25,100 or 82,000. Further declines could drag the market to 25,050 or 81,750.”
Osho Krishan, Senior Analyst – Technical & Derivatives, Angel One Ltd
“Moving forward, a decisive move above 25,300 might trigger a rally towards 25,500. On the downside, support is positioned at 25,200 and 25,000.”
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
“On the upside, we expect Nifty to aim for levels around 25,500. On the downside, key support is positioned between 25,160 and 25,120, where vital hourly moving averages are located. We will continue to ride the uptrend with a trailing stop loss. The Nifty Bank has shown positive signs and is inching towards the 51,950 – 52,000 range, coinciding with the 61.82% Fibonacci retracement level. The support base has shifted higher towards 51,300 – 51,200 for a short-term perspective.”
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) Activity on September 3
According to NSE data, Foreign Institutional Investors (FIIs) were net buyers of Indian equities worth Rs 1,029.25 crore. Similarly, Domestic Institutional Investors (DIIs) were net buyers of equities amounting to Rs 1,896.21 crore.
Performance of Indian Benchmarks on Tuesday
Both Sensex and Nifty concluded Tuesday’s trading session with minimal movement in a day characterized by subdued sentiment and a lack of significant triggers. The BSE Sensex lost 4.40 points or 0.01% to settle at 82,555 by the closing bell. Meanwhile, Nifty 50 gained 1.15 points, marking its 14th consecutive closing in the green, ending nearly flat at 25,280.
