NEGATIVE GLOBAL CUES MAY PUT PRESSURE ON STOCKS

GIFT Nifty:

The GIFT Nifty September futures contract is down 21 points, suggesting a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,208.23 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 275.37 crore in the Indian equity market on 10 September 2024, provisional data showed.

FPIs have bought shares worth over Rs 5815.31 crore in September 2024 (so far). They sold shares worth 21368.51 crore in August 2024.

Global Markets:

The Dow Jones index futures were down 133 points, indicating a weak opening in the US stocks today.

Asian stocks traded lower on Wednesday, reflecting investor caution as they anticipate a crucial U.S. presidential debate and the release of key inflation data. Crude oil prices remained near three-year lows, below $70 per barrel, due to concerns about weak demand.

The upcoming debate between Vice President Kamala Harris and former President Donald Trump could significantly influence the U.S. election. Investors will then turn their attention to the U.S. Consumer Price Index (CPI) report, which could provide clues about potential Federal Reserve interest rate cuts.

While the Fed is expected to lower rates next week, the magnitude of the cut remains uncertain, especially after a mixed jobs report last Friday.

U.S. stock markets experienced a volatile session on Tuesday, closing mixed as investors prepared for the CPI report. The S&P 500 (+0.5%) and Nasdaq Composite (+ 0.9%) finished slightly higher, while the Dow Jones Industrial Average (-0.2%) closed lower.

Apple shares declined after the company lost a legal battle in the EU over a $14 billion tax bill. This followed the recent launch of the iPhone 16, which was met with some disappointment regarding its artificial intelligence capabilities.

Domestic Market:

Domestic stocks rose modestly on Tuesday, with the Nifty closing above 25,000. Tech, media, and healthcare sectors led the gains. Investors are watching US inflation data and Fed policy decisions closely. Global concerns about the US economy and domestic optimism about monsoon and festive season demand are influencing market sentiment. In the barometer index, the S&P BSE Sensex jumped 361.75 points or 0.44% to 81,921.29. The Nifty 50 index gained 104.70 points or 0.42% to 25,041.10.

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