Market poised for steep decline as Asian markets tumble

GIFT Nifty:

GIFT Nifty futures point towards a potential 80 point drop for the Nifty 50 at the open.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,130.90 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,137.30 crore in the Indian equity market on 24 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 17,002.48 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Global Markets:

Dow Jones Futures were up 77 points, indicating a positive opening in the US stocks today.

Asian markets tumbled on Wednesday as investors took a breather from the AI-fueled rally that has propelled stocks higher this year. Japan and South Korea both saw declines of over 2%, with chipmaker SK Hynix Inc. leading the downturn despite strong earnings.

 

The US market suffered a significant setback, with the S&P 500 plunging 2.3% its worst day since December 2022. This marked the end of the longest period without a 2% drop since the 2008 financial crisis. The tech-heavy Nasdaq 100 plummeted 3.64%, dragged down by its largest components. Alphabet Inc. fell 5% after revealing higher-than-expected spending on its AI initiatives. Tesla Inc.'s stock plunged 12% following a disappointing profit report and delay of its robotaxi service. Nvidia Corp. also dropped 6.8%. The slump in the "Magnificent Seven" tech giants triggered a broad market sell-off. The Dow Jones Industrial Average also declined 1.25%.

Domestic Market:

The domestic stock market remained jittery for a fourth day on Wednesday, surrendering early gains as banking and finance stocks faltered. Nifty50 couldn't hold above 24,450 despite pockets of strength in oil & gas and consumer durables. Last-minute buying helped pare some losses, but overall sentiment stayed fragile due to negative global cues.

The S&P BSE Sensex fell 280.16 points or 0.35% to 80,148.88. The Nifty 50 index shed 65.55 points or 0.27% 24,413.50.

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