Nifty and Sensex Likely to Open Positive as DIIs Buying Strengthens

Indian equity benchmarks, the Sensex and Nifty 50, are expected to open on a positive note on Tuesday, September 2. As of 7:07 AM, the GIFT Nifty was trading near 24,763, up 34 points. Asian markets traded mostly higher as investors tracked developments from the Shanghai Cooperation Organisation leaders’ meeting in Tianjin, though tariff-related uncertainty kept sentiment cautious. Meanwhile, U.S. futures remained steady.

On Monday, September 1, Foreign Institutional Investors (FIIs) continued selling, with equities worth Rs 1,429.71 crore offloaded. In contrast, Domestic Institutional Investors (DIIs) turned strong buyers, purchasing equities worth Rs 4,344.93 crore. This divergence between FIIs’ selling and DIIs’ buying has become a key market theme in recent weeks.

The Nifty 50 opened the week on a firm note, gaining 0.81 per cent to close at 24,625.05, while the Bank Nifty advanced 0.65 per cent to finish at 54,002.45. Sectoral performance was mixed, with auto, IT, metals, and realty stocks driving gains, while pharma stocks dragged the indices lower. In the broader markets, both Mid-Cap and Small-Cap indices delivered strong moves, rising in the range of 1.5 per cent to 2 per cent, indicating broader participation beyond Large-Cap counters.

U.S. markets remained shut on Monday for the Labour Day holiday. On August 30, however, the S&P 500 had slipped 0.64 per cent to 6,460.26 after hitting a record high earlier. The Nasdaq fell 1.15 per cent to 21,455.55, while the Dow Jones Industrial Average eased 0.20 per cent to 45,544.88. September historically remains a weak month for equities, and investors are watching tariff-related developments closely.

Crude oil prices extended gains, with WTI futures trading near USD 65 per barrel and Brent above USD 68 per barrel amid supply disruption concerns. Gold remained steady in early Asian trade, with spot prices at USD 3,478.62 per ounce. The precious metal has been supported by expectations of a Federal Reserve rate cut in September.

The U.S. dollar showed a mild recovery in early Asian trade, with the dollar index last up 0.1 per cent at 97.709. This comes after the index touched its lowest level since July 28, following five consecutive days of losses. Investors now await the reopening of U.S. markets for further direction.

Disclaimer: The article is for informational purposes only and not investment advice.