Nifty, Sensex Likely to Open Weak Following Global Cues
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
As of 7:17 AM, the GIFT Nifty was trading near 24,960, down 51 points from its previous close.
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.