On Monday, August 25, Indian equity benchmarks, Sensex and Nifty 50, are likely to begin the session on a positive note, taking cues from strong global trends and growing expectations of a US Federal Reserve rate cut.
As of 7:07 AM, the GIFT Nifty was trading near 24,969, up 91 points from its previous close.
Asian markets were trading higher, while Wall Street ended last week on a strong note, with the Dow Jones closing at a new record high following Jerome Powell’s address at the Jackson Hole symposium.
Back home, the Foreign Institutional Investors (FIIs) were net sellers on Friday while DIIs ended their buying streak.
In this holiday-shortened trading week, investors will focus on key stock market triggers, including the monthly F&O expiry, US Tariff deadline, India GDP data, trends in crude oil prices and other global and domestic macroeconomic data.
On Friday, August 22, Foreign Institutional Investors (FIIs) were net sellers. FIIs sold equities worth ₹1,622.52 crore.
Domestic Institutional Investors (DIIs) ended their longest buying streak. They sold shares worth ₹329.25 crore on the same day. This marked the end of the 33rd consecutive session of net buying.
On Friday, August 22, Indian stock market benchmarks registered declines as profit booking emerged across sectors.
The Sensex dropped 0.85% to close at 81,306.85 after hitting an intraday low of 81,291.77, slipping more than 700 points during the session. The Nifty 50 fell 0.85% as well, ending at 24,870.10 after touching the day’s low of 24,859.15.
Broader markets were comparatively resilient, with the BSE Midcap index down 0.23% and the Smallcap index lower by 0.35%.
Wall Street's main indexes ended higher on Friday, with the blue-chip Dow hitting a record closing high, as investors piled into stocks after U.S. Federal Reserve Chair Jerome Powell hinted at a near-term interest-rate cut during his Jackson Hole Symposium speech.
US markets closed higher with strong gains across major indices. The Dow Jones advanced 846.24 points or 1.89% to 45,631.74, while the S&P 500 added 96.74 points or 1.52% to settle at 6,466.91. The Nasdaq also moved up sharply, rising 396.22 points or 1.88% to finish at 21,496.53.
US Federal Reserve Chair Jerome Powell, speaking at Jackson Hole, suggested that “policy adjustments” could be on the table in the coming months while cautioning that inflation risks are still elevated. He indicated that a possible rate cut may be considered in the Fed’s September meeting, but emphasised that the decision would depend on upcoming labour market and inflation data.
The U.S. dollar attempted on Monday to pull itself up from a four-week low on the euro after a dovish pivot from Federal Reserve Chair Jerome Powell sent it tumbling more than 1%. At 7:03 am IST, the dollar index was trading at 97.50, up by 0.24%.
Gold slipped 0.1% to $3,367.50/oz in early Asian trade.
Brent crude oil futures hovered above $67 per barrel and WTI crude oil futures hovered near $68 per barrel on Monday, holding gains from last week as investors continued to weigh supply risks and prospects of US monetary easing.
Disclaimer: The article is for informational purposes only and not investment advice.
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