Nifty set to open on a flat note, Asian shares jump on China stimulus boost

The Indian equity benchmarks are set to open on a flat note as indicated by Nifty futures traded at Gift City in Gandhinagar amid strong cues from global markets. Nifty futures at Gift City rose 0.02 per cent or 4.5 points to 25,325 amid strong global cues.

China and Hong Kong stocks rallied broadly for a second day on Wednesday as investors basked in the afterglow of a wide-ranging stimulus package announced in the previous day.

In early trade, China's blue-chip CSI300 Index and the Shanghai Composite Index gained more than 2 per cent each. Hong Kong benchmark Hang Seng jumped 3 per cent, while Hang Seng Tech Index surged more than 3 per cent.

Beijing on Tuesday announced a slate of support measures including rate cuts, mortgage requirement easing, and fresh funding for equity purchases, in a bid to prop up the ailing economy.

In the wake of the announcement, the People's Bank of China (PBOC) on Wednesday cut the rate of one-year medium-term lending facility (MLF) loans to some financial institutions to 2.00 per cent from 2.30 per cent.

Overnight, S&P 500 and Dow ended at record highs on Tuesday, shrugging off weak consumer confidence data, as mining stocks surged following China's announcement of a sweeping stimulus package.

The Dow Jones Industrial Average rose 83.57 points, or 0.20 per cent, to 42,208.22, the S&P 500 gained 14.36 points, or 0.25 per cent, to 5,732.93 and the Nasdaq Composite gained 100.25 points, or 0.56 per cent, to 18,074.52.

Back home, foreign institutional investors sold shares worth Rs 2,784 crore on Tuesday while domestic institutional investors bought shares worth Rs 3,868 crore, data from stock exchange showed. FIIs have so far this month bought shares worth Rs 50,913 crore making it the best month in terms of FII investment in the country, according to NSDL.

Stocks to Watch

Mazagon Dock Shipbuilders: Began production of a multipurpose cargo vessel for Denmark’s Navi Merchants.

PC Jeweller: The board will consider a stock split on Sept 30.

KEC International: Opened a Qualified Institutional Placement (QIP) with a floor price set at Rs 976.64 per share.

Solar Industries: Received NCLT approval for merging Rajasthan Explosives with its subsidiary, Emul Tek Pvt.

Hariom Pipes: Approved raising up to Rs 700 crore through equity or other securities.

Zee Media: The board will meet on September 27 to discuss fundraising plans.

HDFC Life Insurance: The company has approved raising Rs 2,000 crore through non-convertible debentures (NCDs).

Delta Corp: Announced demerger and listing of hospitality and real estate businesses into Delta Penland. Shareholders will receive one share of Delta Penland for each Delta Corp share held.

Tata Power: A fire broke out at the Trombay plant’s control room. No injuries were reported, and the company is assessing the damage.

Hindustan Foods: The company is merging its Nashik-based soups, spices, and seasoning manufacturing facilities.

Gillette India: P&G Bangladesh will terminate its distribution agreement with the company, effective December 31. This is expected to cause a 2 per cent drop in net sales.

(With Reuters inputs)