Nifty set to open on a flat note amid stable cues from Asian markets

The Indian equity benchmarks are set to open on a flat note as indicated by Nifty futures traded on Gift Nifty amid stable cues from other Asian markets. Nifty futures on Gift Nifty rose 0.08 per cent or 21 points to 25,411 indicating a flat start for Indian markets.

Asian markets opened quietly on Monday as investors prepared for a week full of critical data, leading up to a US jobs report that could influence the size of an anticipated rate cut later this month.

With markets in the US and Canada closed for a holiday, trading was thin, while gains by far-right parties in German state elections introduced new political uncertainties. The US dollar held onto Friday's gains following strong spending data, reducing expectations of a more aggressive half-point rate cut from the Federal Reserve.

Futures are fully pricing in a 25-basis-point cut on September 18, with a 33 per cent chance of a 50-basis-point reduction. Markets also expect a total of 100 basis points in cuts by December and 120 basis points by 2025.

The Bank of Canada is expected to announce another rate cut on Wednesday, with a 22 per cent chance of a 50-basis-point reduction.

The upcoming US payrolls report on Friday is crucial, with analysts predicting a rise of 1,65,000 jobs and a slight drop in the unemployment rate to 4.2 per cent. A strong report is unlikely to disrupt the expected rate cut, while a weak report could support views that the US economy is on shaky ground, potentially leading to a more aggressive cutting cycle.

Fed officials, including Governor Christopher Waller and NY Fed President John Williams, are scheduled to speak after the job data, offering immediate market reactions.

Other significant reports this week include ISM surveys, JOLTS job openings, ADP employment data, trade figures, and the Fed’s Beige Book, keeping investors cautious as S&P 500 futures dipped 0.1 per cent and Nasdaq futures fell 0.2 per cent.

Back home, foreign institutional investors bought shares worth Rs 5,318.14 crore on Friday while domestic institutional investors sold shares worth Rs 3,198.07 crore.

Stocks to watch

Reliance Industries: The National Company Law Tribunal (NCLT) in Mumbai approved the media merger between Viacom18 and Star India on Friday, following recent clearance from the Competition Commission of India.

Adani Energy Solutions: The company signed a share purchase agreement with REC Power Development and Consultancy to acquire Khavda IVA Power Transmission.

Aditya Birla Capital: Completed the sale of a 50 per cent stake in Aditya Birla Insurance Brokers to Samara Capital’s Edme Services for Rs 252 crore upfront.

Canara Bank: Moody’s has assigned a Baa3 rating with a stable outlook to the bank's issuance of up to $500 million in notes.

Life Insurance Corporation of India (LIC): The country’s largest insurer reduced its stake in HDFC AMC to 2.88 per cent from 4.9 per cent.

Insecticides (India): The board approved a share buyback worth Rs 50 crore at Rs 1,000 per share, with a record date of September 11.

Gujarat State Petronet: Announced a restructuring plan on Friday to streamline its operations, consolidating under two key entities: Gujarat Gas Ltd. and GSPL Transmission Ltd.

Solar Energy Corporation, RailTel Corporation of India Ltd., NHPC Ltd., and SJVN Ltd. have been awarded Navratna status by the Government of India.

Fortis Healthcare: The company will acquire the remaining 31.52 per cent stake in Agilus Diagnostics from PE investors, funding the purchase through the issuance of Non-Convertible Debentures (NCDs).