Oil steadied after a report indicated a decline in US stockpiles, while investors also focused on the prospects of a Ukraine-Russia truce. Here’s a quick look at the key market cues for today’s trade:
Indian Market Outlook
Indian benchmark indices opened on a weak note today, with the GIFT Nifty hovering around 24,971.50. The market started lower, tracking the sentiment from GIFT Nifty.
On August 19, bulls held a firm grip on Dalal Street, with the Indian equity indices extending their gains for the fourth straight session. Nifty even managed to cross the 25,000 mark, driven by buying in heavyweight stocks and broad-based buying, except for the pharma sector. However, profit-booking at higher levels saw the index fall back below 25,000.
At the close, Sensex was up by 370.64 points (0.46%) at 81,644.39, while Nifty gained 103.70 points (0.42%) to close at 24,980.65. The BSE midcap and smallcap indices rose by 1% each.
Global Market Update
- GIFT Nifty (Down): Trading lower around 24,971.50, signaling a negative start for Indian markets.
- Asian Equities (Down): Most Asian indices fell as the risk mood soured, with major tech stocks on Wall Street facing stock rotation.
- US Equities (Down): The Nasdaq and S&P 500 saw losses on Tuesday, mainly driven by a decline in tech stocks, as investors awaited comments from Federal Reserve Chair Jerome Powell regarding interest rates at a key conference later this week. The Dow Jones Industrial Average rose slightly, while the S&P 500 lost 0.59%, and the Nasdaq slumped 1.46%.
- US Bond Yields (Up): Both 10-year and 2-year US Treasury yields were higher in early trade today.
- Dollar Index (Up): The dollar made gains as traders anticipated the Federal Reserve’s Jackson Hole annual symposium for insights on monetary policy.
- Asian Currencies (Down): Most Asian currencies weakened against the US dollar, with the Philippine Peso leading the losses, followed by the Indonesian Rupiah, Malaysian Ringgit, South Korean Won, Thai Baht, and Taiwan Dollar.
- Crude Oil (Steady): Oil prices steadied following a report showing a decline in US stockpiles, while market participants weighed the potential outcome of the Ukraine-Russia truce talks.
- Gold (Down): Gold saw a slight decline ahead of a critical address by Federal Reserve Chair Jerome Powell later this week, which could offer new insights into the central bank’s monetary policy direction.
Fund Flow Action
- Foreign Institutional Investors (FIIs) sold equities worth Rs 634 crore on August 19.
- Domestic Institutional Investors (DIIs) bought equities worth Rs 2,261 crore on the same day.
Wishing you a profitable trading day ahead!
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