Indices likely to open higher on Asian gains

GIFT Nifty:

GIFT Nifty futures point towards a 48.50 point rise for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,598.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,565.10 crore in the Indian equity market on 30 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 8870.19 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Sebi proposes stricter rules for index derivatives:

The market regulator is looking to curb speculation, protect investors, and stabilize the market by introducing measures like upfront option premiums, increased contract sizes, and restrictions on weekly index products.

 

Global Markets:

Dow Jones Futures were down 99 points, indicating a negative opening in the US stocks today.

Asian markets advanced on Wednesday ahead of key interest rate decisions. Investor focus remained on central banks, with the US Fed's and Bank of Japan's decision due later in the day. While a rate hike is unlikely, markets anticipate signals of potential future cuts.

China's manufacturing sector contracted for a third straight month in July, as indicated by the Purchasing Managers' Index (PMI) data. Manufacturing PMI fell to 49.4 in July, data from the National Bureau of Statistics showed. This reflects persistent weakness in domestic demand despite government support measures.

Australia's inflation rate rose as expected in the second quarter, but a softer-than-anticipated core inflation figure increased bets on a pause in interest rate hikes by the Reserve Bank of Australia. CPI inflation grew 3.8% year-on-year in the three months to June 30, up from the 3.6% seen in the prior quarter.

US stocks declined on Tuesday, primarily due to a drop in Nvidia, ahead of the Fed meeting. The S&P 500 fell by 0.5% while the tech-heavy Nasdaq Composite dropped roughly 1.3%. The Dow Jones Industrial Average rose 0.5%.

Market expectations are for the Fed to maintain interest rates on Wednesday but to signal a potential rate cut in September. This outlook is driven by encouraging inflation data.

Domestic Market:

Domestic stocks ended with tiny gains Tuesday, with investors cautiously awaiting interest rate decisions from the US Fed and Bank of Japan on Wednesday. While optimism around potential dovish policies supported the market, profit-booking at higher levels capped gains. Auto and consumer durables stocks fared well, while FMCG, pharma, and IT stocks faced selling pressure. The S&P BSE Sensex rose 99.56 points or 0.12% to 81,455.40. The Nifty 50 index rose 21.20 points or 0.09% to 24,857.30.

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