Market Commentary - Pre-Session
Sharp drop anticipated at market open As on : 05-Aug-24  08:23

GIFT Nifty:

GIFT Nifty futures point towards a 273 point slump for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,310.00 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,965.94 crore in the Indian equity market on 2 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 1220.72 crore in August 2024 (so far). They bought shares worth 5407.83 crore in June 2024.

Global Markets:

Dow Jones Futures were down 297 points, indicating a negative opening in the US stocks today.

Asian markets plunged on Monday as fears of a deepening US recession gripped investors worldwide. Concerns that the Federal Reserve may be lagging in cutting interest rates exacerbated the sell-off.

Japan bore the brunt of the decline, with the Nikkei 225 and Topix indices plummeting as much as 7% in volatile trading.

The Reserve Bank of Australia is set to announce its interest rate decision today.

A weaker-than-expected US jobs report for July fueled recession fears, sending US stocks tumbling on Friday. The S&P 500 dropped 1.84%, the Nasdaq Composite lost 2.43%, and the Dow Jones Industrial Average fell 1.51%.

The report revealed that US nonfarm payrolls increased by only 114,000 in July, one of the weakest figures since the pandemic. Job growth was revised downward for the previous two months. The unemployment rate unexpectedly rose to 4.3%, surpassing the Federal Reserve's year-end forecast and triggering a recession warning.

Domestic Market:

The domestic equity benchmarks took a breather Friday, snapping a five-day winning streak. Profit-booking kicked in after a recent rally, with global markets also turning bearish. The Nifty slipped below 24,750, dragged down by realty, auto, and metal stocks, while pharma and healthcare bucked the trend.

In the barometer index, the S&P BSE Sensex fell 885.60 points or 1.08% to 80,981.95. The Nifty 50 index dropped 293.20 points or 1.17% to 24,717.70. Both the indices had climbed over 2% in five consecutive trading sessions.

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