Summary: On Wednesday, September 3, the equity market benchmark indices, Sensex and Nifty 50, are expected to open lower and extend losses, following weak global market cues.
As of 7:10 AM, the GIFT Nifty was trading near 24,61, down 49 points.
The majority of the Asian markets were in red on Wednesday, while the US stock market ended lower overnight, amid a surge in volatility and treasury yields.
Investors await the GST Council meeting beginning today, which could guide near-term sentiment.
On Tuesday, September 2, Foreign Institutional Investors (FIIs) were net sellers. FIIs sold equities worth ₹1,159.48 crore.
Domestic Institutional Investors (DIIs) were buyers on Tuesday. They bought shares worth ₹2,549.51 crore on the same day.
On Tuesday, the Nifty 50 closed at 24,579.60, slipping 0.18% as the market remained in a consolidation phase. The Bank Nifty registered a steeper decline of 0.63%, settling at 53,661.
Auto and pharma stocks were among the notable laggards, while FMCG stocks stood out. The broader markets outperformed, with mid-cap and small-cap indices posting gains between 0.27% and 0.53%.
On Tuesday, US markets closed with sharp losses as investors assessed the outlook for President Donald Trump’s tariff policies following a federal appeals court decision.
The Dow Jones Industrial Average fell 249.07 points, or 0.55%, to settle at 45,295.81. The S&P 500 slipped 44.72 points, or 0.69%, ending at 6,415.54, while the Nasdaq Composite retreated 175.92 points, or 0.82%, to finish at 21,279.63.
US President Donald Trump has ruled out reducing tariffs on India. When asked if he might ease some of the duties already in place, Trump replied with a firm “no.” While acknowledging cordial ties with New Delhi, he reiterated concerns over what he described as an unequal trade balance caused by India’s higher duties.
The US manufacturing sector remained in contraction for the sixth consecutive month in August. According to the Institute for Supply Management (ISM), the manufacturing PMI rose slightly to 48.7 from July’s 48.
Japan’s services industry expanded at a slower pace in August. The final S&P Global Services PMI eased to 53.1 compared to 53.6 in July, though it stayed above the 50-point mark, signaling continued growth.
Global bond yields climbed as concerns over rising debt levels spread. In the US, the 30-year Treasury yield advanced 5.1 basis points to 4.96%, while the benchmark 10-year yield rose 4.5 basis points to 4.27%.
Gold extended its rally amid expectations of a US Federal Reserve rate cut in September. Spot gold edged higher by 0.2% to $3,540.64 per ounce.
The US dollar index strengthened by 0.66% to 98.44. The euro dipped 0.1% to $1.1630, the British pound slipped 0.12% to $1.3378, while the Japanese yen weakened 0.2%, trading at 148.62 per dollar.
Oil prices were little changed, maintaining the gains recorded earlier due to sanctions-related supply concerns. Brent crude remained steady at $69.14 per barrel, while US WTI inched up 0.06% to $65.63.
Disclaimer: The article is for informational purposes only and not investment advice.
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