Nifty set to open higher amid stable cues from Asian markets

The Indian equity benchmarks are set to open higher on Wednesday as indicated by the Nifty futures traded at Gift City in Gandhinagar. Gift Nifty futures rose 0.2 per cent or 42 points to 25,464 indicating that Nifty may hit new record high during the session amid stable cues from other Asian markets.

Asian markets mostly rose as traders awaited a key Federal Reserve policy decision, with uncertainty over the size of a potential interest-rate cut. Japanese stocks led the surge, benefiting from the yen's drop, which brightened prospects for the country's exporters.

Meanwhile, the dollar gained strength in New York on stronger-than-expected retail sales data. Chinese stocks will resume trading after a break, though Hong Kong remains closed for a holiday.

The odds of a half-point Fed rate cut on Wednesday now sit at just over 50 per cent, fuelling gains in risk assets like Bitcoin and oil. Treasuries remained steady after a slight dip on Tuesday.

Overnight, US stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years.

The benchmark S&P 500 index touched 5,670.81 earlier in the session, after fresh economic data eased worries of a sharp slowdown in the US economy.

The Dow Jones Industrial Average fell 15.90 points, or 0.04 per cent, to 41,606.18, the S&P 500 gained 1.49 points, or 0.03 per cent, to 5,634.58 and the Nasdaq Composite gained 35.93 points, or 0.20 per cent, to 17,628.06.

Back home, foreign institutional investors bought shares worth Rs 482.69 crore on Tuesday while domestic institutional investors purchased shares worth Rs 874.15 crore, data from the National Stock Exchange showed.

Stocks to Watch

REC: REC has signed a non-binding financial commitment to expand its renewables loan portfolio, targeting over Rs 3 lakh crore by 2030. This move will increase the share of renewables in its loan book from 8 per cent to 30 per cent, boosting India's green energy initiatives. Additionally, REC received a Letter of Intent from Maharashtra State Electricity Distribution Co. for a 1,500 MW pumped hydro storage project with a 40-year lifespan, positioning REC as a key player in India's renewable energy future.

Reliance Power: Reliance Power has fully settled its obligations as a guarantor for Vidarbha Industries Power, with the release of a Rs 3,872.04 crore corporate guarantee and related debt. The company also reached a settlement with CFM Asset Reconstruction, clearing outstanding disputes and paving the way for future growth.

Infosys : Infosys has entered into a long-term collaboration with the UK’s Metro Bank to digitally transform the bank's IT and support functions, enhancing its business operations. This deal strengthens Infosys' global digital transformation portfolio.

Biocon: LIC has increased its stake in Biocon, purchasing 5 lakh additional shares and raising its holding from 4.982 per cent to 5.023 per cent. The move signals growing institutional confidence in Biocon's growth potential.

Reliance Infrastructure: Reliance Infrastructure has agreed to a one-time settlement worth Rs 385 crore with Edelweiss Asset Reconstruction Company related to non-convertible debentures. The settlement is expected to be completed by September 30, 2024, offering financial clarity as the company aims to streamline operations.

(With Reuters inputs)