In a mixed start to the trading session, domestic equities initially opened on a positive note but soon experienced a significant sell-off driven by profit booking and varying global cues. The third-quarter earnings season is in full swing, contributing to stock-specific actions during this shortened trading week.
Pre-Market Overview:
GIFT Nifty Signals Positive Start:
GIFT Nifty (formerly SGX Nifty) traded higher by 87 points, indicating a positive start for Dalal Street at 21,277. India VIX, a gauge of market fear, rose by 7.6% to settle at 14.85 levels.
S&P 500 Records High Close:
The S&P 500 achieved a record high close on Tuesday amid a mix of early quarterly results. The index rose by 0.29%, Nasdaq gained 0.43%, and Dow experienced a 0.25% decline.
Mixed Asian Markets:
Asian stocks presented a mixed picture, with optimism in China and lower openings in Japanese markets. S&P 500 futures increased by 0.2%, Hang Seng futures rose by 2.1%, Japan’s Topix fell by 0.2%, Australia’s S&P/ASX 200 remained stable, Euro Stoxx 50 futures dropped by 0.3%, and Nasdaq 100 futures rose by 0.2%.
Dollar Strengthens:
The dollar hovered near a six-week high against major peers on Wednesday as investors cemented expectations that the Federal Reserve would be in no rush to cut interest rates in the face of a resilient U.S. economy.
FII/DII Activity:
Foreign portfolio investors divested equities amounting to Rs 3,115 crore on Tuesday, while domestic institutional investors infused Rs 214 crore.
Rupee Depreciation:
The Indian rupee depreciated by 8 paise to 83.15 against the US dollar, influenced by foreign fund outflows and subdued sentiments in the domestic equities market.