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Pre- market: Watch out for steel stocks today

Markets are likely to open marginally higher but profit taking at higher levels is likely to cap upside gains. However, buying interest in the broader market is likely to continue.

At 8:30AM, the SGX Nifty was down 3 points at 7,880.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 251.36 crore on Wednesday, as per provisional data from the stock exchanges.

On Wednesday, markets snapped their six-day winning streak on profit taking after sharp gains which lifted the benchmark share indices to their record highs.

On the global front, Asian shares were trading lower after a private survey showed weaker-than-expected Chinese manufacturing data. HSBC/Markit Flash China Manufacturing Purchasing Manager’s Index slipped to 50.3 in August compared with 51.7 in July, against a forecast of 51.5.
Except for Nikkei all other indices were trading lower. Nikkei was up 0.8%, Hang Seng was down 0.8%, Shanghai Composite fell 0.3% and Straits Times was trading flat.

US stocks came off their day’s highs to end firm on Wednesday after the US Fed indicated that it is likely to raise interest rates soon. The Dow Jones ended up 59 points at 16,979. The S&P 500 gained 5 points to close at 1,987. The Nasdaq Composite ended 1 point lower at 4,526.


Steel stocks such as SAIL, Tata Steel, JSW Steel and MOIL will be impacted after Iron ore and bauxite would now see a rate rise to 15 per cent against the earlier 10 per cent. Manganese ore would attract a royalty equivalent to five per cent from 4.2 per cent of the notified sales price.

Claris Life will see some gains after it said that it has received approval from UK regulator for new plant.

Zee Entertainment will see some upside as the stock will be included in the Nifty from Sep 19 while United Spirits will see some selling as the stock will be excluded from the Nifty from Sep 19.


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