NEGATIVE GLOBAL CUES MAY WEIGH ON DOMESTIC INDICES

GIFT Nifty:

GIFT Nifty futures for September is trading 16 points lower, indicating a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) bought shares worth Rs 483.36 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,870.22 crore in the Indian equity market on 26 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 30102.44 crore in August 2024 (so far). They bought shares worth 5407.83 crore in July 2024.

Global Markets:

Most Asian stocks declined on Tuesday, driven by rising tensions in the Middle East and concerns over global supply chains. The exchange of fire between Israel and Lebanon`s Hezbollah on Sunday heightened geopolitical risks, leading investors to seek safer assets.

Additionally, Canada`s imposition of tariffs on Chinese electric vehicles, steel, and aluminum, mirroring similar moves by the United States and European Union, further dampened sentiment.

Investors are closely watching Nvidia`s earnings report for insights into AI-related investments.

In the U.S., the Dow Jones Industrial Average reached a new high on Monday, recovering from a recent sell-off. However, the S&P 500 and Nasdaq Composite declined. A shift from technology stocks to other sectors was evident.

Market participants are now focused on the upcoming release of the U.S. personal consumption expenditure price index (PCE) on Friday and the August payrolls report next week.

Federal Reserve Chair Jerome Powell`s speech on Friday signaled an imminent start to interest rate cuts, with markets fully pricing in a 25-basis-point reduction in September. Expectations for further easing in the coming months have also increased.

Domestic Market:

The key equity indices ended with strong gains on Monday, boosted by Federal Reserve Chair Powell`s hint of potential interest rate cuts in the near future. The speech sparked a risk-on rally in global stock markets. The Nifty closed above the 25,000 level, with notable gains in metal, realty, and IT sectors. However, media and PSU bank stocks faced some selling pressure. In the barometer index, the S&P BSE Sensex jumped 611.90 points or 0.75% to 81,698.11. The Nifty 50 index surged 187.45 points or 0.76% to 25,010.60.

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