Market Commentary - Pre-Session
Indices may see a flat opening As on : 08-May-24  08:19

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could slide 8 points at the opening bell.

Global markets:

Asian stocks were mixed on Wednesday following a sluggish US session overnight. Investors are looking for signs of strong corporate earnings before pushing this month's rally further. Optimism over eventual interest rate cuts was dampened by Fed officials signaling steady rates in the near-term.

Domestic Markets:

The benchmarks equity indices ended with major losses on Tuesday, bucking positive global cues. The barometer index, the S&P BSE Sensex slipped 383.69 points or 0.52% to 73,511.85. The Nifty 50 lost 140.20 points or 0.62% to 22,302.50 after reaching an intraday high of 22,499.05. Several factors contributed to the decline. Recent corporate earnings reports, lacking in significant positive surprises, failed to impress investors. Additionally, lower-than-expected voter turnout in the ongoing elections has raised concerns about the outcome, fostering investor caution. Further, some investors are choosing to take profits after the recent market rally, potentially due to valuations perceived as high. Finally, the delay in a potential US Federal Reserve rate cut and persistent global inflation are contributing to a risk-averse investor sentiment. This cautiousness is reflected in the sectoral performance. While FMCG and IT stocks witnessed buying, realty, metals, and PSU banks experienced a slump.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,668.84 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,304.50 crore in the Indian equity market on 7 May 2024, provisional data showed.

FPIs have sold shares worth over Rs 9100 crore in May so far. They offloaded shares worth 35692 crore in April 2024.

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