Nifty, Sensex to open higher amid positive global cues

Stock market news: Benchmark indices are likely to open with a positive note today as Wall Street offered a healthy dose of inspiration for Asian markets, which gave mixed signals. GIFT Nifty was trading 44.5 points higher at 25,392.5 as of 7:37 am.

“Nifty and Sensex have hit historic highs at 25,433.35 and 83,116.19, reflecting strong market confidence. Investors remain optimistic, eyeing Nifty's next psychological target of 26,000, driven by FOMO. Key stocks in focus include Bharti Airtel, surging on Wi-Fi service expansion, and steel stocks, buoyed by robust demand as reported by ICRA,” said  Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“On the downside, Granules India fell 16 per cent after US FDA observations. For traders, Nifty is a buy between 25,200-25,300 with targets up to 26,100, while Bank Nifty offers aggressive targets up to 55,000. Jindal Steel & Power remains a top pick for a bullish rebound,” Tapse added.

Asian markets were mixed on Friday as investors remained cautious ahead of the Federal Reserve's meeting next week. The Japanese yen, meanwhile, rose against the dollar, weighing on export-heavy stocks in Japan, while Australia and South Korea posted gains. Traders continued to watch for any signals that the US may lower interest rates, an indication that the Fed will do all it can to nurse the economy through upward pressures on inflation.

On Wall Street, the major indexes jumped over-night as data showed US producer prices rose at a moderate pace in August. The Dow Jones closed up 243 points, the S&P 500 added, and Nasdaq joined the party driven by investors' hope for a smaller 25-bps rate cut by the US Federal Reserve. Tech and Small-cap stocks outperformed, suggesting renewed investor interest in sectors promising growth.

Stocks to watch

Wipro : The Company has declared stock allotments under its ADS Restricted Stock Unit Plan and could have a bearing on investor sentiment relating to the capital management efforts of the IT giant.

Reliance Industries: A Rs 63 lakh tax penalty has been imposed on Reliance over input tax credit claims. The company will appeal against the order, hence the point to be watched for further development.

Power Grid: Power Grid Corporation has emerged as the winner in the "augmentation of transformation capacity" project in Gujarat, which is a good omen for the company's pipeline of project execution.

HCL Technologies: HCL has acquired Zeena SAS, a software company based in Paris, for EUR 23.9 million. The acquisition is in line with the expansion strategy of HCL in Europe and strengthens its portfolio offerings in enterprise software solutions.

Muthoot Capital: The NBFC has also issued commercial paper of Rs 25 crore thereby adding to its operational liquidity, and that could generate excitement in its stock.

HG Infra Engineering: This company has received a work order from Central Railway worth Rs 716 crore for the construction of a new broad gauge line, another big award in the infrastructure sector.

BLS International: BLS has entered into an agreement for acquiring 100 per cent in Citizenship Invest-a Dubai-based company specialising in residence and citizenship programs. This deal is valued at $31 million and is expected to increase the international footprint of BLS.