Indices set to slide at open

GIFT Nifty:

Early indications from GIFT Nifty futures point towards a 22.50 points decline for the Nifty 50 index.

Foreign portfolio investors (FPIs) sold shares worth Rs 426.03 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,917.43 crore in the Indian equity market on 1 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 426.03 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Global Markets:

Asian markets lacked a clear direction, contrasting with a positive close on Wall Street led by tech stocks.

Megacap growth stocks, like Apple and Tesla, propelled the tech-heavy Nasdaq to a strong start for the new quarter. The broader market also participated in the gains, with the Dow and S&P 500 edging higher in pre-holiday trading.

 

Investors are awaiting key U.S. labor market data later this week, hoping for insights into the Federal Reserve's interest rate plans. The Dow Jones Industrial Average rose 0.13%, the S&P 500 gained 0.27%, and the Nasdaq Composite surged 0.83%. Notably, the tech sector jumped 1.3% in the first trading session of July.

While the US manufacturing PMI data for June indicated continued contraction, a bright spot emerged: prices paid dropped to a six-month low. This could be a welcome sign for the Fed's fight against inflation. Despite this, market expectations remain for around two interest rate cuts later this year, beginning in September, according to LSEG FedWatch.

Domestic Markets:

Monday's market saw a measured rise, closing the day with the Nifty50 above 24,100. IT and financial services led the charge. Global stocks advanced amid hopes of a potential Fed rate cut in September. This optimism stemmed from lower-than-expected US inflation data (PCE). Investors are looking ahead to US jobs data and the Fed Chair's speech for further clues on interest rates. In the barometer index, the S&P BSE Sensex was up 443.46 points or 0.56% to 79,476.19. The Nifty 50 index added 131.35 points or 0.55% to 24,141.95. Both these indices attained record closing high levels today.

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