On Wednesday, August 20, the benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, following weakness in global markets.
As of 7:17 AM, the GIFT Nifty was trading near 24,960, down 51 points from its previous close.
The majority of the Asian peers were trading lower, while the US stock market ended mostly lower, weighed down by selling in tech stocks.
On Tuesday, August 19, Foreign Institutional Investors (FIIs) were net sellers again. FIIs sold equities worth ₹634.26 crore.
Domestic Institutional Investors (DIIs) showed strong momentum. They purchased shares worth ₹2,261.06 crore on the same day. This extended their buying streak to an impressive 31 consecutive trading sessions.
Indian equity markets ended higher on Tuesday, with gains driven by Reliance Industries and auto stocks amid expectations of demand support from proposed GST reductions.
The Nifty 50 closed up 0.42% at 24,980.65, while the BSE Sensex rose 0.46% to 81,644.39.
Broader indices also moved higher, with the Nifty Smallcap advancing 0.7% and the Nifty Midcap rising 1%.
China left its benchmark lending rates unchanged for the third straight month in August. The one-year Loan Prime Rate (LPR) remained at 3.0%, while the five-year LPR stayed at 3.5%.
India and China have decided to restart direct flight services and enhance trade and investment ties. Both countries agreed to reopen border trade at three specified points and ease visa procedures to support business and travel.
Japan’s exports contracted for the third consecutive month in July, falling 2.6% year-on-year, worse than expectations of a 2.1% decline and following June’s 0.5% drop. Imports were down 7.5%, compared with forecasts of a 10.4% fall. The trade balance showed a deficit of 117.5 billion yen ($795.4 million), against expectations of a 196.2 billion yen surplus.
U.S. markets ended mixed on Tuesday as weakness in technology shares dragged down the Nasdaq and S&P 500. The Nasdaq slipped as large-cap tech stocks, which had rallied earlier this year, lost ground. Nvidia fell 3.5 per cent, its sharpest single-day drop in nearly four months.
The Dow Jones Industrial Average rose 10.45 points, roughly flat, to 44,922.27, while the S&P 500 declined 37.78 points, or 0.59%, to 6,411.37. The Nasdaq Composite closed 314.82 points, or 1.46%, lower at 21,314.95.
All eyes will be on the Jackson Hole Symposium, as the street will watch the speech by US Federal Reserve Chair Jerome Powell scheduled on August 22.
The dollar index, which measures the currency against six major counterparts, edged up to 98.393 early on Wednesday, the highest since August 12. It had gained about 0.4% in the first two days of this week.
Gold slipped to its lowest level in almost three weeks as the US dollar gained strength. Spot gold eased 0.1% to $3,312.79 per ounce.
Brent crude oil futures rose above $66 per barrel and WTI crude oil futures rose above $62 per barrel on Wednesday.
Disclaimer: The article is for informational purposes only and not investment advice.
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