On Monday, August 4, the good news is Gift Nifty is indicating a green start for the benchmark Nifty, in hope that the latest 25% tariffs won’t come into effect until August 7th. As a result, there is a window of opportunity for the Indian government to try and negotiate lower levies.
As of 7:19 AM, the GIFT Nifty was trading near the 24,675 mark, up 76 points from its previous close.
Asian markets showed a mixed trend on Monday, while Wall Street closed in the red on Friday, with the S&P 500 recording its sharpest single-day drop in over two months.
During the week, market participants will closely track several key factors such as the RBI’s upcoming monetary policy decision, progress on the India-US trade deal, quarterly earnings reports, IPO activity, foreign fund flows, and movements in gold and crude oil prices.
DLF, Bosch, Siemens Energy India, Shree Cements, Marico, Aditya Birla Capital, Aurobindo Pharma, Sundaram Finance, Godfrey Phillips India, Escorts Kubota, Tata Investment Corporation, Sumitomo Chemical India Limited and Sona BLW Precision Forgings will announce their Q1 earnings today.
On Friday, August 1, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹3,366.40 crore, marking a streak of ten consecutive trading sessions of selling. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹3,186.86 crore during the same session, extending their buying streak to 20 consecutive trading sessions.
Indian stock markets witnessed a sharp decline on Friday, August 1, marking a weak beginning for the August derivatives series. Broad-based selling dragged indices lower, driven by concerns over global tariffs, underwhelming quarterly results, and continued outflows from foreign investors.
The BSE Sensex fell by 586 points, or 0.72%, to close at 80,599.91. Meanwhile, the Nifty 50 index ended the day 203 points, or 0.82%, lower at 24,565.35.
U.S. stock markets closed in the red on Friday as fresh tariffs on multiple trade partners and a weaker-than-expected jobs report triggered a wave of selling.
The Dow Jones Industrial Average slipped by 542.40 points (1.23%) to finish at 43,588.58. The S&P 500 lost 101.38 points (1.60%) to end at 6,238.01, while the Nasdaq Composite shed 472.32 points (2.24%) to settle at 20,650.13.
On a weekly basis, the Dow recorded a decline of 2.92%, the S&P 500 fell 2.36%, and the Nasdaq was down 2.17%.
U.S. job growth in July came in below expectations, signalling a slowdown in the labour market. According to the Labor Department's latest employment data, the unemployment rate increased to 4.2% last month, largely due to a drop in the more unpredictable household employment figures.
OPEC has decided to increase oil production by 547,000 barrels per day starting in September. This adjustment not only reverses the group’s largest previous output cuts ahead of schedule but also includes a separate production boost for the United Arab Emirates. Altogether, the combined rise in supply totals around 2.5 million barrels per day, which accounts for roughly 2.4% of global oil demand.
The US dollar posted a modest recovery following the release of a weak jobs report. The dollar index edged up by 0.2% to 98.86, after having declined more than 1% in the previous session.
US Treasury yields moved lower, with the two-year yield dropping to a three-month low of 3.6590% amid growing expectations of a Federal Reserve rate cut in September. The 10-year benchmark yield hovered near a one-month low at 4.2060%, reflecting cautious market sentiment.
After posting strong gains in the prior session, gold prices eased due to profit-taking. Spot gold fell by 0.3% to $3,351.80 per ounce, retracing part of Friday’s over 2% surge.
Crude oil prices declined as OPEC announced another substantial production increase for September. Brent crude slipped 0.42% to $69.38 per barrel, while West Texas Intermediate (WTI) crude dropped 0.39% to $67.07. Both benchmarks had closed around $2 lower in the previous trading session.
Disclaimer: The article is for informational purposes only and not investment advice.
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