JKB Financial Services Ltd.

As on : 03-Aug-2023

Market Commentary - Pre-Session
03-Aug-2023 08:07

Market may open higher

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 28 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower on Thursday, adding to steep losses in the previous session following a U.S. credit rating downgrade from Fitch and better-than-expected ADP employment data.

U.S. stocks suffered a wave of selling on Wednesday after a surprise downgrade of the country's debt rating by Fitch, citing fiscal deterioration and repeated debt ceiling standoffs. Also, data showed U.S. private sector employment jumped by much more than expected in July, reviving Fed rate hike bets.

U.S. private sector employment increased by 324000 jobs in July, and annual pay was up 6.2% year-over-year, adding to pressure on the Federal Reserve to maintain restrictive policy.

Domestic markets:

Back home, the key equity barometers experienced a significant decline on Wednesday, marking the second consecutive trading session of losses. The barometer index, the S&P BSE Sensex tumbled 676.53 points or 1.02% to 65,782.78. The Nifty 50 index lost 207 points or 1.05% to 19,526.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,877.84 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2.23 crore in the Indian equity market on 2 August, provisional data showed.

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