NIFTY 50 FACES WEAK START, MIMICKING ASIAN SELL-OFF

GIFT Nifty:

GIFT Nifty futures point towards a potential 46.5-point drop for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,975.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,418.82 crore in the Indian equity market on 23 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 22,133.38 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Global Markets:

Dow Jones Futures were down 76 points, indicating a positive opening in the US stocks today.

Asian shares dropped across the board on Wednesday, mirroring losses on Wall Street after major US technology companies, including Tesla and Alphabet, released underwhelming earnings reports.

Adding to the negative sentiment, Japanese manufacturing activity unexpectedly contracted in July, according to the au Jibun Bank flash manufacturing PMI. This data, coupled with ongoing frustration over the Bank of Japan`s low-interest-rate policy, is putting pressure on the central bank to address inflation concerns.

In the US, stocks closed slightly lower on Tuesday as investors digested mixed corporate earnings reports and kept a close watch on the evolving presidential election. The broad-based S&P 500 declined 0.16%, while the tech-rich Nasdaq Composite Index dipped 0.06%. The Dow Jones Industrial Average declined 0.14%

The Federal Reserve`s preferred inflation gauge, the PCE data, and US GDP data are both expected to be released later this week, potentially impacting interest rate expectations.

Domestic Market:

The stock market saw minor cuts Tuesday as the Budget for 2024-25 was unveiled. Both Sensex and Nifty extended their losing streak to three sessions. Despite positive global cues, the Nifty50 closed below 24,500 after hitting an early high of 24,582.55. Profit booking in response to the Finance Minister`s hike in long-term capital gains tax from 10% to 12.5% erased gains. However, last-hour buying helped the index recover slightly, ending the day on a flat note. FMCG and consumer durables shares rallies, while realty and PSU banks tumbled.

The S&P BSE Sensex fell 73.04 points or 0.09% to 80,429.04. The Nifty 50 index shed 30.20 points or 0.12% to 24,479.05.

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