Market seen lower, global cues to support

GIFT Nifty:

GIFT Nifty futures is trading 22.50 points lower, indicating a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,667.46 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,802.92 crore in the Indian equity market on 19 August 2024, provisional data showed.

FPIs have sold shares worth over Rs 31644.27 crore in August 2024 (so far). They bought shares worth 5407.83 crore in July 2024.

Global Markets:

Most Asian stocks climbed on Tuesday, mirroring Wall Street's gains fueled by anticipation of potential Federal Reserve rate cut hints later this week.

 

China's benchmark lending rates remained unchanged as expected, with minimal market impact.

Investor focus is on the Fed's July meeting minutes, due Wednesday, and Chair Jerome Powell's Jackson Hole speech on Friday for clues on the U.S. rate outlook.

Risk appetite was also bolstered by Israeli Prime Minister Benjamin Netanyahu's acceptance of a U.S.-proposed interim deal to address the Gaza conflict.

U.S. stocks rallied on Monday, extending their strongest weekly performance of the year. The Dow Jones Industrial Average rose 0.6%, the S&P 500 gained 1%, and the Nasdaq Composite jumped 1.4%. Tech giants like Nvidia, Microsoft, and Alphabet contributed to the Nasdaq's outperformance.

The upcoming Jackson Hole Economic Symposium, starting Thursday, will be closely watched for insights into the Fed's transition from a restrictive to neutral monetary policy stance.

Domestic Market:

Domestic equity benchmarks ended flat Monday, with Nifty50 settling above 24,570. Metals and energy stocks shined while autos and banks dragged. The market's resilience is evident as it continues to reward the "buy on dips" approach. The barometer index, the S&P BSE Sensex, declined 12.16 points or 0.02% to 80,424.68. The Nifty 50 index added 31.50 points or 0.13% to 24,572.65.

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