GIFT NIFTY SIGNALS A POSITIVE START

GIFT Nifty:

GIFT Nifty futures is trading 22.50 points higher, indicating a positive start for the Nifty 50.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,371.79 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,971.80 crore in the Indian equity market on 22 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 32530.28 crore in August 2024 (so far). They bought shares worth 5407.83 crore in July 2024.

Global Markets:

Most Asian stocks were trading lower as investors anticipated comments from Jerome Powell later on Friday.

The yen strengthened early Friday after Japanese inflation data surpassed expectations. Government figures revealed that core CPI, which excludes volatile fresh food prices, rose 2.7% year-over-year in July, while headline CPI inflation increased by 2.8% during the same period.

U.S. stocks declined on Thursday, with the S&P 500 falling 0.89% and the tech-heavy Nasdaq 100 dropping 1.67%. The Dow Jones also decreased by 0.43%. Nvidia Corp. led losses in the tech sector with a sharp 3.7% drop, while Intel Corp. fell by 6.1%. Conversely, bank stocks rose, and energy shares gained alongside rising oil prices. Notably, Peloton Interactive Inc. soared 35% after reporting earnings that exceeded estimates.

Fed Chair Powell is scheduled to speak at the Jackson Hole Symposium on Friday, where he is expected to provide further insights into the central bank�s plans for potential interest rate cuts.

New jobless claims in the U.S. increased slightly last week but remained relatively low, suggesting a gradual slowdown in the labor market. This trend could pave the way for the Federal Reserve to begin lowering interest rates next month. Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 232,000 for the week ended August 17, according to the Department of Labor.

Domestic Market:

The domestic stock market closed slightly higher Thursday, driven by consumer durables and PSU banks. However, media and IT stocks pulled back. The Nifty50 ended above the 24,800 mark. Media and IT stocks, however, declined. Investors are now focused on U.S. economic data and Fed Chair Powell�s speech for clues on potential interest rate cuts. A dovish Fed stance could stabilize the market as uncertainty decreases. The barometer index, the S&P BSE Sensex rose 147.89 points or 0.18% to 81,053.19. The Nifty 50 index added 41.30 points or 0.17% to 24,811.50. The 50-unit index has risen 2.79% in six sessions.

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