Banks and Metals Stocks Lifted Nifty Today; Market Extremely Bullish
From Puneet Sikka
Investing.com – is up 1.4% today and in the process, it is scaling new highs. Levels of 16,940+ for Nifty was never seen before which goes to show that the sentiment is extremely bullish. This sentiment is coming from the US Federal Reserve Chairman Jerome Powell’s speech on Friday in which he said that he would wait before making a decision on tapering and interest rates increase. He mentioned that the economy has not recovered quickly enough to warrant tapering, and there is still a long way before Fed start to raise interest rates.
Banks ( ) and Metals ( ) stocks lifted the overall market, while IT ( ) stocks resorted to profit booking. Tata Steel Ltd (NS: ), AXIS Bank Ltd (NS: ) and Bharti Airtel Ltd. (NS: ) all closed up by 4%. Axis Bank announced that Rs 35,000 crore debt raise plan in which it will issue debt securities. Airtel’s board approved the Rs 21,000 crore fundraising plan, which could help it invest in 5G technology and provide it with an edge over its competitors.
USGC bunkers market sentiment mixed on New Orleans closure post Ida
Southeastern ports could be poised to slow down
US Gulf Coast spot bunkers markets will be monitoring the port of New Orleans this week in the wake of Hurricane Ida marking landfall, with expectations for re-opening mixed among local players.
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“Think we won’t see much demand today as people get their bearings and decide what to do with their ships post-hurricane,” a Houston supplier said. “Hearing it may be two days until we see NOLA reopen for vessel movements. Everyone just waiting for updates.”
Category 4 Hurricane Ida ravaged much of southern Louisiana and Mississippi on Aug. 29, leaving well more than 1 million electricity customers without power for the foreseeable future.
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In advance of the storm, about 95% of the US Gulf’s oil and gas production was shut-in, and roughly 2.2 million b/d of oil refining capacity was closed, S&P Global Platts Analytics data showed.
Retail bunkers sources in Southeastern US ports, such as Charleston and Savannah, were not seeing any residual impact stemming from the Port of New Orleans closing, but some were preparing for that dynamic to change.
“No impact at this time,” a source said. “I guess it could possible slow us down some, however I don’t see any issues.”
On the bulk marine fuel side, much of the market sentiment throughout the trading day was one of uncertainty.
The ongoing power outages and damage to infrastructure was unknown.
One source said that a survey of damages would likely take up to three days and believed that operations would take at least seven days before resuming.
A second source said that outside of news of refineries that shut down due to power outages, there has been a lack of information and updates on terminals and tanks.
Retail 0.5%S marine fuel spot pricing in Houston rose $3 on the day Aug. 30 to price at $505/mt ex-wharf, taking direction from the USGC bulk 0.5%S segment, which saw value rise $6.50/mt.
MGO spot pricing in Houston rose $1 to $595/mt ex-wharf Aug. 30, with a supplier indication heard at that level.
New Orleans spot prices tracked Houston to be assessed at $515/mt ex-wharf on 0.5%S and $600/mt ex-wharf on MGO.
Market LIVE Updates: Indices trade firm in the pre-opening amid mixed global cues
August 31, 2021 / 08:54 AM IST
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Going ahead, market is likely to continue with its positive momentum as US Fed’s dovish statement has put investors worry to rest. Sentiments turned optimistic as Powell stressed that even if they start reducing asset purchases this year, it would not tighten monetary policy quickly. Now all attention will turn to an OPEC meeting due on Wednesday to discuss a further output boost.
Further, investors will keep watch on India’s GDP data that is due later this week along with Auto sales number that will start pouring in from Wednesday. However, rising Delta variant cases and poor monsoon does is a concern to the market.
From the long term perspective, the overall trend of the market remains positive led by the opening up of the economy, improving economic data points and pickup in vaccinations. Hence, investors can take advantage of the current volatility and build their positions from the medium to long term perspective.