Market Commentary - Pre-Session
Shares may slide at opening bell As on : 22-Aug-24  08:36

GIFT Nifty:

GIFT Nifty futures is trading 30.50 points lower, indicating a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) sold shares worth Rs 799.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,097.45 crore in the Indian equity market on 21 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 33902.07 crore in August 2024 (so far). They bought shares worth 5407.83 crore in July 2024.

Global Markets:

Most Asian stocks traded lower on Thursday, primarily driven by a downward revision in U.S. payrolls data. This revision raised concerns about a potential economic slowdown in the world's largest economy.

Japan's stock market bucked the regional trend, supported by stronger-than-expected services sector data. The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) rose to 49.5 in August from 49.1 in July.

On Wednesday, U.S. stock markets closed higher, extending a positive streak. The S&P 500 and the Nasdaq advanced for the ninth day in the last 10 trading sessions with the former gaining 0.42% and the tech-heavy Nasdaq adding 0.57%. The Dow Jones saw modest gain of 0.14%. The minutes from the Federal Reserve's latest meeting reinforced expectations for a rate cut in September, with a majority of FOMC members indicating that such a move would be appropriate based on current economic indicators.

But optimism over a rate cut was offset by data showing a severe downward revision in U.S. payrolls data in the year to March 2024, drumming up concerns that a slowing labor market could spur a potential recession in the world's biggest economy. The Bureau of Labor Statistics revised down March 2024's employment gains by 818,000 positions earlier in the session, as part of the agency's annual benchmark review of payroll data.

Investors now eagerly await Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday.

Domestic Market:

The headline equity benchmarks continued their winning streak for the fifth day in a row on Wednesday. The Nifty50 settled above the 24,750 mark after hitting the day's low of 24,654.50 in early trade. Consumer goods and fast-moving consumer goods stocks performed well, while real estate and public sector banks faced selling pressure. Investors are closely watching for clues about potential US interest rate cuts from the upcoming release of Federal Reserve meeting minutes and a speech by Fed Chair Jerome Powell. The barometer index, the S&P BSE Sensex gained 102.44 points or 0.13% to 80,905.30. The Nifty 50 index added 71.35 points or 0.29% to 24,770.20. The 50-unit index has risen 2.61% in five sessions.

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