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Sell-off seen continuing on weak global cues

Published on May 30, 2024 08:18

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 82 points at the opening bell.

Global Markets:

Dow Jones index futures were down 289 points, indicating a weak opening in the US stocks today.

Asian stocks fell Thursday, mirroring declines in the US after another weak Treasury sale renewed concerns about higher yields. This halt in the global risk rally comes amid data suggesting lingering inflationary pressures.

Tepid demand in the $44 billion sale of seven-year US Treasuries initially caused them to fall across the curve. This raised concerns that funding the US deficit will drive up yields, especially with the Federal Reserve unlikely to cut rates soon.

Adding to these concerns, key US inflation data is due on Friday, including the PCE price index, the Federal Reserve`s preferred inflation gauge. A revised reading on first-quarter US gross domestic product data is also due on Thursday. US indices fell on Wednesday, reflecting these anxieties. The S&P 500 fell 0.7%, the NASDAQ Composite fell 0.6%, and the Dow Jones Industrial Average fell 1.1%.

Domestic Markets:

The Nifty 50 dropped for a fourth straight day Wednesday, pressured by selling in banks and financials. Pharma and healthcare offered a glimmer of hope, but the overall sentiment remained cautious. Investors are on edge ahead of election results, with retail and HNIs taking a wait-and-see approach. A bright spot is the sustained buying by domestic institutions (DIIs), hinting at their confidence in a post-election rebound. While global cues are mixed, the Nasdaq`s record high injected some optimism. The barometer index, the S&P BSE Sensex slipped 667.55 points or 0.89% to 74,502.90. The Nifty 50 index declined 183.45 points or 0.80% to 22,704.40. The 50-unit index is down 1.15% in four consecutive days.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,841.84 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,233.79 crore in the Indian equity market on 29 May 2024, provisional data showed.

FPIs have sold shares worth over Rs 40777.37 crore in May so far. They offloaded shares worth 35692 crore in April 2024.

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