Stock Market Today: Sebi Board meet, Manba Fin IPO listing, Nikkei sinks 4%

Share market today, September 30, 2024: GIFT Nifty is signalling a weak start for the benchmarks Sensex and Nifty50 on Monday, September 30, 2024. At 6:32 AM, GIFT Nifty futures were trading about 38 points lower at 26,307 levels, indicating a negative opening compared to the last close of Nifty futures.

Meanwhile, on Friday, September 27, both BSE Sensex and NSE Nifty50 reached new all-time highs before closing in negative territory. The BSE Sensex ended down 264 points (0.31 per cent) at 85,571.85, having peaked at 85,978.25 during the session. Meanwhile, Nifty50 saw a high of 26,277.35 before closing down 37.13 points (0.14 per cent) at 26,178.95.

Wall Street update

In the US, investor optimism regarding a soft landing for the economy will face scrutiny this week, ahead of the upcoming labour market data following a series of disappointing jobs reports. 

On Friday, the S&P 500 and Nasdaq slipped 0.13 per cent and 0.39 per cent, respectively, while the Dow Jones gained 0.33 per cent.

Asian Markets

In Asia, Japan's Nikkei 225 plummeted over 4.5 per cent on Monday, while Australian stocks reached a new high in anticipation of key economic data from China.

Japan reported retail sales for August rising by 2.8 per cent year-on-year, surpassing estimates of 2.3 per cent. The broader Topix index fell over 3 per cent. 

Japan's incoming prime minister, Shigeru Ishiba, stated on Sunday that the country should maintain an accommodative monetary policy to support its fragile economic recovery, indicating a need to keep borrowing costs low.

Meanwhile, China will release its official PMI numbers for September today, with expectations of a slight improvement in the manufacturing PMI to 49.5 from 49.1 in August. The Caixin PMI, a private survey, will also be released today.

Geopolitical woes

Ongoing Israeli airstrikes in Lebanon add to geopolitical tensions, though oil prices remain pressured by the prospect of increased supply.

Sebi board meet

The first board meeting of the Securities and Exchange Board of India (SEBI) since Chairperson Madhabi Puri Buch faced scrutiny from Hindenburg Research and allegations from the Congress Party is set for Monday. 

The agenda will include discussions on the various claims of non-disclosures and conflicts of interest against her, as well as policy decisions related to consultation papers that have exceeded their public consultation deadlines.

Other triggers

Apart from that, key economic indicators from India, including manufacturing, services, composite indices, current account deficit (CAD), external debt, and government budget figures, will be closely monitored during this week.

Additionally, Japan's unemployment rate (Oct 1) and Britain’s manufacturing data (Oct 1) are also on the radar. 

This week is also packed with major US economic data, including a payrolls report that could influence the Federal Reserve's decision on a potential rate cut in November. Investors will also pay attention to an address by Fed Chairman Jerome Powell, who is set to discuss the economic outlook before the National Association for Business Economics on Monday.

IPO corner

Today, WOL 3D India Limited (SME), Rappid Valves (SME), and Manba Finance (Mainline) will be listed on the stock exchanges. 

Meanwhile, the IPOs for NeoPolitan Pizza and Foods Limited (SME), Paramount Dye Tec Limited (SME), and Subam Papers Limited (SME) will open for subscription.

Additionally, today marks the last day for subscriptions for Divyadhan Recycling Industries Limited (SME), Sahasra Electronics Solutions Limited (SME), Forge Auto International Limited (SME), Diffusion Engineers Limited (Mainline), and Nexxus Petro Industries Limited (SME).

Market activity

On Friday, September 27, 2024, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,209.10 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 6,886.65 crore.

Commodity check

Gold prices were on track for their best quarter in over eight years, having reached multiple record highs as the prospect of US monetary easing boosts demand for non-yielding bullion. 

Spot gold was down 0.7 per cent at $2,651.88 per ounce on September 27 after reaching an all-time high of $2,685.42 on Thursday (September 26).

Here's how analysts are assessing today's (September 30) trading session:

Rupak De, senior technical analyst at LKP Securities

The sentiment remains strong as the index continues to stay above important moving averages. This strength is likely to persist as long as it remains above 25,900. On the higher end, a fresh round of rally may begin above 26,300. If the Nifty moves above 26,300, it could potentially rise towards 26,600.

Ravi Nathani, independent analyst 

The Nifty Index has formed its first red candle on the daily charts, signalling a shift in momentum as some bearishness and profit booking have started to emerge. After a strong performance over the past fortnight, the index has rallied sharply, leading to overbought conditions in multiple technical indicators. This suggests that the market may be poised for a short-term pullback or underperformance. Support on the charts is expected at 25,920, 25,700, and 25,350. These levels are likely to provide opportunities for fresh buying as the risk-reward ratio will be more favourable once the index corrects. 

Nagaraj Shetti, senior technical research analyst at HDFC Securities

Nifty on the weekly chart formed a long bull candle which is the third consecutive candle on the row. Technically this weekly market action is indicating a bullish 'three advancing soldiers' type pattern which signals uptrend continuation. The near-term uptrend of the market remains intact. Nifty could eventually bounce after the consolidation in the next few sessions. Immediate support is at 25,900.