On Friday, August 29, Indian equity benchmarks, Sensex and Nifty 50, are expected to open on a positive note on Friday.
As of 7:27 AM, the GIFT Nifty was trading near 24,666, up 40 points.
Most of the Asian peers were trading in green, while the US stock market ended higher overnight, with the S&P 500 and Dow Jones scaling record high closes.
India’s industrial production rose to a four-month high of 3.5% in July, driven mainly by the manufacturing sector.
On Thursday, August 28, Foreign Institutional Investors (FIIs) were net sellers. FIIs sold equities worth ₹3,856.51 crore.
Domestic Institutional Investors (DIIs) were buyers on Thursday. They bought shares worth ₹6,920.34 crore on the same day.
Indian equity indices declined for the second consecutive session on Thursday, weighed down by worries over the effect of fresh U.S. tariffs on Indian exports. The Nifty 50 ended lower by 0.85% at 24,500.9, while the BSE Sensex slipped 0.87% to close at 80,080.57.
Over the last two trading days, the benchmarks have fallen nearly 2%, with markets remaining shut on Wednesday.
The S&P 500 and Dow Jones Industrial Average notched record high closes on Thursday after Nvidia's quarterly report fell short of investors' high expectations but confirmed that spending related to artificial intelligence infrastructure remains strong.
The S&P 500 advanced 0.32% to finish at 6,501.86, marking a new record closing level for the second day in a row. The Nasdaq closed higher by 0.53% at 21,705.16, while the Dow Jones Industrial Average added 0.16% to settle at 45,636.90, surpassing its earlier record close from August 22.
The US economy expanded at a faster pace in the second quarter than earlier estimated. Gross Domestic Product (GDP) grew at an annualised rate of 3.3%, compared with the initial estimate of 3%. The economy contracted in the first-quarter, marking the first quarterly decline in three years.
In the labour market, new filings for unemployment benefits fell last week. Initial jobless claims dropped by 5,000 to 229,000 for the week ending August 23.
On monetary policy, US Federal Reserve Governor Christopher Waller indicated that he favors beginning rate cuts as early as next month. Speaking at the Economic Club of Miami, he said he would back a 25-basis-point reduction at the September 16–17 FOMC meeting and expects additional cuts to gradually bring policy closer to a neutral level.
The US dollar fluctuated as expectations of a Federal Reserve rate cut gained momentum. The dollar index, which tracks the greenback against six leading currencies, stood at 97.917 and was set for a monthly decline of around 2%.
Gold prices stayed near a one-month high, with spot gold holding at $3,413.80 per ounce after touching its strongest level since July 23 in the previous session. The precious metal has risen 3.6% so far this month.
Crude oil edged lower and was on track for a monthly decline. Brent crude slipped 0.73% to $68.12 a barrel, and US West Texas Intermediate (WTI) futures fell 0.70% to $64.15 a barrel.
Disclaimer: The article is for informational purposes only and not investment advice.
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