Gift Nifty signals weak start, global cues could boost equities

GIFT Nifty:

GIFT Nifty futures is trading 27.50 points lower, indicating a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,107.17 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,239.96 crore in the Indian equity market on 13 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 27148.16 crore in August 2024 (so far). They bought shares worth 5407.83 crore in June 2024.

Global Markets:

Asian stocks mostly rose on Wednesday, buoyed by Wall Street's rally following upbeat US inflation data. This strengthened expectations that the Federal Reserve could initiate monetary easing as early as September.

New Zealand's dollar tumbled after the central bank unexpectedly cut interest rates by 25 basis points to 5.25%.

Chinese equities declined as data revealed a contraction in bank loans to the real economy for the first time in 19 years. Investors are eagerly awaiting earnings results from Tencent Holdings and details of its planned share buyback.

US stocks surged on Tuesday, nearing recent record highs, after a milder-than-expected producer price index (PPI) report. The Dow Jones Industrial Average gained 1.04%, the Nasdaq Composite jumped 2.43%, and the S&P 500 climbed 1.68%.

The PPI, a measure of wholesale inflation, rose 0.1% last month. This data buoyed investor sentiment ahead of Wednesday's more closely watched consumer price index (CPI) report, which is expected to show a modest increase of 0.2% month-over-month.

Domestic Market:

Domestic stocks tanked on Tuesday, dragged lower by banks and financials. Weak IIP data, continued FII selling, and overvalued equities exacerbated losses. HDFC Bank declined after a softer-than-expected inflow due to a staggered MSCI index adjustment. While defensive sectors like consumer goods and healthcare showed resilience, overall market sentiment remains fragile ahead of crucial U.S. inflation data. The S&P BSE Sensex dropped 692.89 points or 0.87% to 78,956.03. The Nifty 50 index slipped 208 points or 0.85% to 24,139.

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