MARKET MAY GAIN MOMENTUM ON STRONG GLOBAL CUES

GIFT Nifty:

GIFT Nifty futures point towards a potential 90.50 point rise for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,546.38 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,774.31 crore in the Indian equity market on 26 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 16943.37 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Global Markets:

Dow Jones Futures were up 151 points, indicating a positive opening in the US stocks today.

Asian stocks rallied on Monday, buoyed by hopes of potential interest rate cuts from the Federal Reserve. The battered technology sector led the gains as investors eagerly awaited the upcoming Fed meeting for clues on monetary policy.

However, Chinese markets underperformed regional peers. Sentiment towards China remained subdued ahead of crucial economic data releases this week. Additionally, lingering uncertainty about the next U.S. administration`s stance on Beijing weighed on investor confidence.

The positive momentum in Asia was fueled by a strong finish on Wall Street on Friday. Easing inflation concerns boosted expectations for eventual interest rate reductions. The Dow Jones Industrial Average surged 1.64%, the S&P 500 climbed 1.11%, and the Nasdaq Composite gained 1.03%. This upward movement was attributed to a combination of oversold conditions, a better-than-expected GDP report, and growing optimism about the Fed`s potential rate cuts.

Investors also digested the latest inflation data. The June Personal Consumption Expenditures (PCE) price index, the Fed`s preferred inflation gauge, rose 0.1% month-over-month and 2.5% year-over-year.

While the Fed is expected to maintain interest rates unchanged at its meeting on Wednesday, investors will closely monitor any hints about the timing of potential rate cuts, especially given recent encouraging comments from Fed officials.

Domestic Market:

Domestic stocks bounced back today, ending a five-day slump. The Nifty reclaimed the 24,800 level, led by gains in metals, healthcare, and auto sectors. While this is a relief, traders are wary. Holding onto the 24,000 level is key for a sustained rally. Upcoming earnings, sectoral performance, and global trends will dictate the market`s next move. The barometer index, the S&P BSE Sensex jumped 1,292.92 points or 1.62% to 81,332.72. The Nifty 50 index soared 428.75 points or 1.76% to 24,834.85. The 50-unit index fell 1.59% in the past five sessions.

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