Indian stock markets are set for a strong start today as the GIFT Nifty trades near 24,565. This follows a third consecutive session of gains for benchmark indices on July 31. Investors are now tracking global cues, including a sharp sell-off in Asian chip stocks and positive sentiment from US tech earnings.
Indian equity markets are expected to begin the trading session on a positive note today, August 3, tracking gains in the GIFT Nifty, which was trading around the 24,565 level in early hours. This follows a successful week for domestic investors, as both the BSE Sensex and Nifty 50 closed the previous week with gains of 2.6%, effectively recovering from losses in the prior period.
Market Momentum and Recent Performance
In the trading session on July 31, the Nifty 50 managed to reclaim the 24,400 mark, supported by buying interest across several sectors, though FMCG and IT stocks remained exceptions to this trend. The Sensex ended the day at 78,094.64, up 166.49 points or 0.21%, while the Nifty 50 closed at 24,383.60, a rise of 66.45 points or 0.27%. The broader market also participated in the momentum, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices recording gains of 0.4%.
Global Factors Affecting Sentiment
While domestic sentiment remains firm, international markets present a complex picture. Asian markets have faced pressure, particularly in South Korea, where major chipmakers such as Samsung Electronics and SK Hynix saw their share prices drop by nearly 9% each. This significant decline led to a fall of up to 5.5% in the Kospi Index early Monday.
Conversely, US markets showed resilience on Friday. The Nasdaq Composite gained 1% to reach 25,373.85, supported by strong quarterly performance from Amazon, which bolstered confidence in artificial intelligence-related sectors. The S&P 500 rose 0.70% to 7,489.72, and the Dow Jones Industrial Average added 0.53% to 52,485.03. Notably, Apple’s stock faced a decline following its earnings announcement, showing how individual company performance continues to drive US indices.
Currency and Commodity Movements
Currency markets are experiencing volatility as the US dollar weakened against the Japanese yen on Monday. This shift has led to broader strengthening in Asian currencies, including the Japanese yen, the South Korean won, and the Indonesian rupiah. For Indian investors, currency fluctuations often impact export-oriented sectors and import costs. Meanwhile, crude oil prices have dipped on reduced Middle East tensions, which may help ease concerns regarding global inflation. In contrast, gold prices have seen an increase as market participants seek stability.
Institutional Activity
Institutional flows have been a key support for Indian equities. On July 31, Foreign Institutional Investors (FIIs) were net buyers of Indian equities for the fourth day in a row, with purchases totaling ₹277 crore. Domestic Institutional Investors (DIIs) also showed strong confidence, emerging as net buyers with total equity purchases of ₹2,260 crore. Investors will likely track whether this sustained buying trend continues throughout the coming week as a signal of institutional sentiment.