Pre-market update: Domestic equity markets are poised to kick off the holiday-shortened week on a positive note, buoyed by strong cues from Asian markets and renewed expectations of a US Federal Reserve rate cut in September.
As of 7:35 AM, the GIFT Nifty was up 0.23 per cent or 58 points, signaling a higher open for Indian benchmarks. This comes after the Nifty index ended a six-day winning streak on Friday, as domestic investors turned net sellers following nearly two weeks of consistent buying.
Asian Markets Rally After Powell’s Comments
Investor sentiment across Asia received a boost after Fed Chair Jerome Powell left the door open for potential rate cuts during his address at the Jackson Hole symposium on Friday. Powell acknowledged weakening US employment data and hinted at a shifting balance of risks, although he maintained a cautious stance on inflation risks, partly attributing them to lingering effects of tariffs introduced during President Donald Trump’s administration.
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Australia’s benchmark index hit a fresh all-time high, while China’s CSI 300 and Hong Kong’s Hang Seng rose over 1%. Japan’s Nikkei was last up 0.7 per cent.
Wall Street Closes Strong
US markets also reacted positively to Powell’s remarks, with the S&P 500 logging its best single-day gain since May, closing 1.52 per cent higher. The tech-heavy Nasdaq surged 1.88 per cent. According to Bloomberg, traders are now pricing in an 84 per cent chance of a Fed rate cut at the upcoming FOMC meeting scheduled for September 16–17.
Key Events Ahead
Market participants will closely monitor several key developments this week, including US inflation data, quarterly earnings from Nvidia Corp., and a series of corporate results across Asia. These events could inject volatility into the markets and offer further directional cues.
IPO Activity
No mainboard IPOs are scheduled for today. However, in the SME segment, public issues of NIS Management and Globtier Infotech open for subscription. Ongoing offerings from Classic Electrodes (India), Shivashrit Foods, and Anondita Medicare enter their second day, while the IPO of ARC Insulation & Insulators is set to close today.
