Positive global signals may fuel market rally

GIFT Nifty:

GIFT Nifty futures point towards a 177 point jump for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,531.24 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,357.45 crore in the Indian equity market on 6 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 14825.71 crore in August 2024 (so far). They bought shares worth 5407.83 crore in June 2024.

Global Markets:

Dow Jones Futures were up 207 points, indicating a bounce in the US stocks today.

Asian stocks rebounded on Wednesday, recovering from sharp losses earlier in the week. Japan's markets surged following encouraging comments on interest rates from the Bank of Japan. However, lingering concerns about a global economic slowdown tempered overall sentiment.

Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said on Wednesday the central bank won't raise interest rates when financial markets are unstable.

Regional markets drew support from a strong Wall Street close, though the U.S. recovery remained fragile after Monday's steep decline. Recent comments from Federal Reserve officials alleviated immediate recession fears, boosting investor confidence. The S&P 500 and Nasdaq rallied 1% on Tuesday, erasing some of the previous day's losses.

The Fed has indicated that interest rate cuts might be necessary to prevent a recession, indicating a cautious outlook. The Dow Jones Industrial Average gained 294.39 points to close at 38,997.66, while the S&P 500 rose 53.7 points to 5,240.03. The Nasdaq Composite added 166.77 points, ending at 16,366.86.

Domestic Market:

Domestic equity indices reversed early gains to end lower on Tuesday, marking the third consecutive day of losses. The Nifty slipped below the crucial 24,000 level as investors booked profits amid global uncertainties. Banking and financial stocks led the decline. While a rebound in Asian markets provided initial optimism, concerns over recession, a strengthening Yen, and geopolitical tensions dragged sentiment down. The barometer index, the S&P BSE Sensex, was down 166.33 points or 0.21% to 78,593.07. The Nifty 50 index lost 63.05 points or 0.26% to 23,992.55.

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