On Friday, August 22, the benchmark indices, Sensex and Nifty 50, are expected to see a cautious start, following mixed global market cues, as investors remain cautious ahead of the US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium.
As of 7:12 AM, the GIFT Nifty was trading near 25,095, down 10 points from its previous close.
Majority of the Asian peers where seen trading with modest gain, while the US stock market ended lower overnight, with all three benchmark Wall Street indices facing losses.
Back home, the Foreign Institutional Investors (FIIs) were net buyers on Friday while DIIs continued their buying streak.
On Thursday, August 21, Foreign Institutional Investors (FIIs) were net buyers. FIIs bought equities worth ₹1,246.51 crore after selling for the last two consecutive sessions.
Domestic Institutional Investors (DIIs) showed strong momentum. They purchased shares worth ₹2,546.27 crore on the same day. This marked their 33rd consecutive session of net buying.
On Thursday, India's equity indexes continued their winning streak for six straight sessions, primarily due to increases in banking companies following a plan to exclude insurance from taxes. While the Sensex gained 0.17% to settle at 82,000.71, the Nifty 50 moved up 0.13% to close at 25,083.75.
Market sentiment has also been buoyed by optimism around GST reform measures and S&P’s sovereign rating upgrade. In the last six sessions, the Sensex jumped 2.2% while the Nifty has gained 2.4%. Small-cap stocks closed the day flat against the larger indexes, while mid-cap stocks fell 0.4%.
Japan’s core inflation slowed for a second straight month in July but stayed above the central bank’s 2% target. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 3.1% in July from a year earlier, smaller than the 3.3% increase in June.
US stock market ended lower on Thursday as investors feared potentially hawkish remarks by the Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium.
US markets ended lower as the Dow declined 152.81 points or 0.34% to 44,785.50, the S&P 500 slipped 25.61 points or 0.40% to 6,370.17, and the Nasdaq fell 72.55 points or 0.34% to close at 21,100.31.
Business activity in the US gained momentum in August, largely supported by a rebound in the manufacturing sector. The S&P Global flash US Composite PMI Output Index, which reflects performance across manufacturing and services, inched up to 55.4 in August from 55.1 in July, marking its highest reading since December.
Fresh applications for unemployment benefits in the US recorded their sharpest weekly increase in nearly three months. Initial state jobless claims rose by 11,000 to 235,000 for the week ending August 16, according to seasonally adjusted data.
Home resale activity in the US posted an unexpected rise in July. Existing home sales advanced by 2.0% to an annualised pace of 4.01 million units, compared to 3.93 million in June. On a year-on-year basis, sales were up by 0.8%.
The dollar index, which measures the U.S. currency against six rivals, was at 98.61, on course for a 0.7% rise in the week, snapping its two-week losing streak.
Gold prices held steady at $3,338.44 per troy ounce as stronger yields and a firmer dollar kept sentiment muted, with markets awaiting Fed Chair Powell’s keynote at the Jackson Hole meeting for policy signals.
Disclaimer: The article is for informational purposes only and not investment advice.
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