Indian Equity Markets Open Flat; Nifty at 24,965, Sensex at 81,671

Market Update at 10:15 AM: India’s equity benchmarks opened flat on Wednesday, pausing after two consecutive sessions of gains supported by optimism over possible tax cuts. The Nifty 50 was down 0.06 per cent at 24,965.8 points, while the BSE Sensex gained 0.03 per cent to 81,671.47, as of 9:15 a.m. IST.

Market performance was mixed, with ten of the 16 major sectors declining, although the losses remained marginal. Broader indices showed resilience as Small-Caps (SMALLCAP) rose 0.2 per cent, while Mid-Caps (MIDCAP) traded flat. Analysts noted that investors continue to track opportunities in both small-cap and Large-Cap segments, particularly in stocks with potential for multibagger returns over the long term.

In the global context, Asian markets slipped, with the MSCI Asia ex-Japan index losing 1.2 per cent. The decline followed a tech sell-off on Wall Street, where investors pulled back from high-valuation technology stocks. Meanwhile, Indian investors are also keeping an eye on upcoming Quarterly Results, IPO activity, and developments around dividend announcements and right issues, which could drive sector-specific momentum.

Attention remains fixed on the U.S. Federal Reserve’s annual Jackson Hole symposium, scheduled for August 21–23 in Wyoming. Most market participants are expecting a 25-basis-point rate cut next month. However, concerns around tariffs and global trade are adding caution to investor sentiment.

Pre-Market Update at 7:30 AM: On Wednesday, August 20, benchmark indices Sensex and Nifty 50 are expected to open lower, tracking weakness in global markets. As of 7:17 AM, the GIFT Nifty was trading near 24,960, down 51 points from its previous close.

Foreign Institutional Investors (FIIs) remained net sellers on Tuesday, August 19, offloading equities worth Rs 634.26 crore. In contrast, Domestic Institutional Investors (DIIs) extended their buying momentum, purchasing shares worth Rs 2,261.06 crore. This marked the 31st consecutive trading session of DII inflows, providing support to large-cap and mid-cap stocks.

Indian equity markets closed higher on Tuesday with support from Reliance Industries and auto stocks, aided by expectations of demand push from proposed GST reductions. The Nifty 50 ended up 0.42 per cent at 24,980.65, while the BSE Sensex rose 0.46 per cent to 81,644.39. Broader indices also gained, with the Nifty Smallcap advancing 0.7 per cent and the Nifty Midcap rising 1 per cent.

China kept its benchmark lending rates unchanged for the third straight month in August. The one-year Loan Prime Rate (LPR) remained at 3.0 per cent and the five-year LPR at 3.5 per cent, indicating policy continuity.

India and China agreed to restart direct flight services, reopen border trade at three points, and ease visa procedures. The move is aimed at boosting bilateral trade, investment, and travel.

Japan’s exports contracted for the third month in a row, falling 2.6 per cent year-on-year in July, higher than expectations of a 2.1 per cent fall. Imports declined 7.5 per cent, less than the projected 10.4 per cent drop. The trade balance showed a deficit of 117.5 billion yen (USD 795.4 million) compared with expectations of a surplus.

US markets ended mixed on Tuesday. The Nasdaq Composite slipped 1.46 per cent to 21,314.95, while the S&P 500 fell 0.59 per cent to 6,411.37. Nvidia dropped 3.5 per cent, its sharpest decline in nearly four months, dragging large-cap technology stocks. The Dow Jones Industrial Average ended almost flat, up 10.45 points at 44,922.27. Investor attention now shifts to the Federal Reserve’s Jackson Hole conference (August 21–23), where remarks from Chair Jerome Powell are expected to give clarity on future interest rate cuts.

The US Dollar Index rose to 98.393, its highest since August 12. Gold prices fell 0.1 per cent to USD 3,312.79 per ounce, touching a three-week low. Crude oil prices moved higher, with Brent above USD 66 per barrel and WTI crossing USD 62 per barrel, after industry data showed a larger-than-expected fall in US crude inventories.

For today, Titagarh Rail System and RBL Bank remain on the F&O ban list.

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