Sensex and Nifty Open Lower, Led by Financials, IT Stocks

Market Update at 9:45 AM: India’s equity benchmarks opened lower on Friday, halting a six-session winning streak. The decline was led by financials and IT stocks as investors awaited Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium for policy cues.

The Nifty 50 fell 0.3 per cent to 25,015 points, while the BSE Sensex dropped 0.3 per cent to 81,793.98 as of 09:23 a.m. IST. Both indexes had gained consistently over the past six sessions, supported by expectations of a possible revision in the goods and services tax (GST) and optimism around a potential S&P sovereign rating upgrade.

At the sectoral level, eleven of the 16 major indices opened in the red. Heavyweight financial stocks under Nifty 50 slipped 0.4 per cent. IT stocks, which had advanced 3 per cent in the last three sessions, edged lower by 0.1 per cent.

Market participants are closely tracking Powell’s remarks later in the day for clarity on the US interest rate outlook, which could impact foreign portfolio investments into Indian equities, including Large-Cap and Mid-Cap companies. 

Pre-Market Update at 7:30 AM: On Friday, August 22, benchmark indices Sensex and Nifty 50 are likely to open on a cautious note, tracking mixed global market cues. Investors remain watchful ahead of US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium. As of 7:12 AM, the GIFT Nifty was trading near 25,095, down 10 points from its previous close.

On Thursday, August 21, Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth Rs 1,246.51 crore after selling in the last two sessions. Domestic Institutional Investors (DIIs) continued their strong momentum, with net buying worth Rs 2,546.27 crore, marking their 33rd straight session of inflows.

Indian equities extended their winning streak to six sessions on Thursday. The Sensex gained 0.17 per cent to close at 82,000.71, while the Nifty 50 moved up 0.13 per cent to settle at 25,083.75. Over the last six sessions, Sensex advanced 2.2 per cent and Nifty gained 2.4 per cent. Large-cap stocks outperformed, while mid-cap stocks slipped 0.4 per cent and Small-Cap stocks closed flat. Gains were supported by banking shares, optimism around GST reform measures, and an upgrade in India’s sovereign rating by S&P.

Japan’s core inflation slowed for the second consecutive month in July but remained above the Bank of Japan’s 2 per cent target. The nationwide core consumer price index (CPI) rose 3.1 per cent in July year-on-year, compared with 3.3 per cent in June.

Wall Street closed lower on Thursday as investors braced for potentially hawkish commentary from Fed Chair Powell. The Dow fell 152.81 points or 0.34 per cent to 44,785.50, the S&P 500 slipped 25.61 points or 0.40 per cent to 6,370.17, and the Nasdaq dropped 72.55 points or 0.34 per cent to 21,100.31.

The S&P Global flash Composite PMI rose to 55.4 in August from 55.1 in July, marking the strongest level since December, supported by manufacturing recovery. Weekly jobless claims increased by 11,000 to 235,000, the sharpest rise in three months. Meanwhile, existing home sales rose 2.0 per cent to 4.01 million units in July, up 0.8 per cent on a yearly basis.

The US dollar index stood at 98.61, heading for a 0.7 per cent weekly gain after two weeks of losses. Gold prices were stable at USD 3,338.44 per troy ounce, with traders awaiting Powell’s speech for policy cues. Brent crude futures traded above USD 67 per barrel and WTI above USD 63.5, both on course for their first weekly gain in three weeks, supported by firm US demand and geopolitical concerns.

For today, PG Electroplast and RBL Bank remain on the F&O ban list.

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