Market Commentary - Pre-Session
Indices may drop amid global selloff As on : 02-Aug-24  08:39

GIFT Nifty:

GIFT Nifty futures point towards a 90 point slump for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,089.28 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 337.03 crore in the Indian equity market on 1 August 2024, provisional data showed.

FPIs bought shares worth 5407.83 crore in July 2024.

Global Markets:

Dow Jones Futures were down 215 points, indicating a negative opening in the US stocks today.

Asian stocks tumbled on Friday, pressured by a confluence of negative factors including a selloff in Japan, a global tech rout, and worries about the US economy.

Japanese stocks plunged for a second day on expectations of tighter monetary policy in the country.

U.S. stocks opened August significantly lower after economic data raised concerns about a slowing economy despite the Federal Reserve's restrictive monetary stance.

Weekly unemployment claims reached a near-one-year high, and US manufacturing activity contracted to an eight-month low in July due to a decline in new orders (data from Aug 1).

The tech sector's losses stemmed from underwhelming earnings reports or outlooks from industry leaders like Intel and Amazon. Investor focus now shifts to the crucial monthly jobs report, due later on Friday.

Geopolitical tensions added another layer of uncertainty. The recent Israeli airstrikes in Gaza, reportedly killing both Hamas' military and political leaders, further dampened market sentiment.

Domestic Market:

Domestic equity benchmarks rose for fifth straight session Thursday, with the Nifty50 breaching the 25,000 mark, driven by optimism over a potential Fed rate cut and a recovering US economy. While energy stocks led the charge, gains were tempered by rising crude prices due to Middle East tensions and profit-booking in sectors like realty and autos. Trading was volatile due to expiry of weekly index options today.

In the barometer index, the S&P BSE Sensex, was up 126.21 points or 0.15% to 81,867.55. The Nifty 50 index rose 59.75 points or 0.24% to 25,010.90. Both the indices attained record closing high levels. The 50-unit index is up 2.48% in five straight sessions.

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