Market Headstart: Nifty likely to open higher; Infosys, United Spirits top buys

The Nifty50 seen opening higher on Wednesday even though the mood is slightly somber in Asian markets as fears of global recession increased after poor U.S. economic data.

The U.S. manufacturing sector contracted in August for the first time since 2016 amid worries about a weakening global economy and rising trade tensions between China and the United States, the Institute for Supply Management’s (ISM) report on Tuesday showed, said a Reuters report.

The S&P BSE Sensex plunged 769 points to 36,562 while the Nifty50 closed 225 points lower at 10,797 on Tuesday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 32.5 points gain or 0.3 percent. Nifty futures were trading around 10,852-level on the Singaporean Exchange.

The rupee on September 3 dropped sharply by 97 paise to more than nine-month low of 72.39 against the US dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy.

On the institutional front, FPIs were net sellers in Indian markets for Rs 2016 cr while DIIs were net buyers to the tune of Rs 1251 cr, provisional data showed.

Stocks in news:

Central Bank of India introduces repo linked interest rate in the bank on home loan product and vehicle loan product

Bank of Baroda will raise up to Rs 1,132.05 crore by issuing fresh shares to its staff under the Employee Share Purchase Scheme (ESPS), the bank said on Tuesday.

Kerala-based Muthoot Finance Company, facing a protest by a section of employees demanding revised salary structure and other benefits, on Tuesday threatened to close some of its branches in the state.

Technical Recommendations:

We spoke to SMC Global Securities o and here’s what they have to recommend:

United Spirits Ltd: Buy| Target: Rs 671| Stop Loss: Rs 570| Upside 10%

Relaxo Footwears Ltd: Buy| Target: Rs 500| Stop Loss: Rs 420| Upside 11%

Infosys Ltd: Buy| Target: Rs 859| Stop Loss: Rs 780| Upside 6%

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