Is Trading In the Indian Stock Market Open Today?

Trading in the Indian stock market will not be open on Tuesday due to the celebration of the Ganesh Chaturthi festival across India. Similarly, banks and government offices will also be closed on the occasion. However, the global market will continue to trade.

In the Indian market, trading in the equity segment, equity derivative segment, SLB segment and currency derivatives segment will be closed on September 19.

Meanwhile, Asian cues traded on a mixed note in the early hours owing to cautious sentiment in Wall Street ahead of rate decisions by major central banks.

At the time of writing, Japan's Nikkei 225 traded down by 0.9%, the Australian shares dipped 0.4%, and South Korea's KOSPI witnessed a marginal drop. Hong Kong's Hang Seng index and China's mainboard Shanghai Composite index were in red too.

Further. US and Hong Kong futures saw subdued performance.

Bloomberg reported that the S&P 500 and Nasdaq 100 indexes inched higher on Monday, as Apple Inc. climbed, while Tesla Inc. dropped as Goldman Sachs Group Inc. lowered earnings estimates for the electric-vehicle giant.

Wall Street started the current week with a volatile and cautious tone as investors prepare for the US Federal Reserve's meeting where rate decisions will be announced. The policy outcomes will follow a slew of economic data including an easing in core inflation, a surge in retail sales, and a cooling in the labor market among others. Fed is highly expected to keep key rates unchanged in the September 2023 policy.

Overnight, US indexes like the Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq ended with a marginal upside.

Meanwhile, the US dollar index slipped by 0.2% against a basket of currencies, treasury yields also retreated with the policy-sensitive two-year yield down by 1 basis point. Other currencies traded in a narrow range.

However, crude oil prices continued to be a spoilsport for inflationary pressures ahead as benchmark Brent moves closer to $95 per barrel.

Markets Performance On Monday:

On September 18, Sensex shed 241.79 points or 0.36% to end at 67,596.84. While Nifty 50 plunged by 59.05 points or 0.29% to settle at 20,133.30. Bank Nifty dipped by 251.65 points or 0.54% to finish at 45,979.85.

PSU bank stocks were the star performer of this day with Nifty PSU Bank index skyrocketing by 3.4%. FMCG and consumer durables stocks also saw gaining momentum. However, realty, IT, media, private banks, financials, pharma and metal stocks dragged the benchmarks.

Nifty Midcap 100 and Smallcap 100 also faced bears and ended lower at 40,658.20 and 12,725.20 respectively.

On the markets' performance, Vinod Nair, Head of Research at Geojit Financial Services said, "Domestic markets relinquished their momentum as they anticipated a raft of policy rate decisions due this week. The investor's confidence was also impacted by the expectations of a demand resurgence in China, combined with crude supply cuts. With the Fed rate hike fears back on the cards, as reflected in the elevated US bond yields, the markets await clarification from major central banks."

What Should Investors Do In Indian Markets Ahead?

According to Milind Muchhala, Executive Director - Julius Baer India, The Indian equity markets are experiencing a robust momentum, with key index heavyweights recently joining the rally. However, caution is advised, especially in the small and microcap segments. The overall market conditions appear favorable, with stable macro-economic indicators, easing inflation, healthy corporate earnings in Q1FY24, and strong liquidity flows, including domestic investments through SIPs.

But he also added that there are potential sources of intermittent volatility, such as the US Fed's actions, rising commodity prices (especially crude oil), uncertain monsoon impact on crop production, upcoming state elections, and soft rural consumer demand.

To investors, Muchhala said, FII flows, while previously robust, have started tapering off, possibly due to India's outperformance among emerging markets and potential US Fed rate hikes. It's important to remain slightly conservative as corrections can be swift. Favoring large cap and larger midcap names is suggested, while profit-taking in stocks (especially momentum ones) that have surged recently may be prudent. Despite intermittent corrections, the overall positive outlook for Indian markets remains, driven by economic growth, strong corporate earnings, robust expected inflows, and valuations in line with historical averages. Interim corrections should be viewed as opportunities to increase equity exposure for long-term investors.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.