Global downturn continues, Indian markets try to fight back

Global markets are struggling under the weight of poor economic signals from the US, Japan, and China, indicating a slowdown in growth. While India’s markets attempt to resist global trends, profit-booking is pulling indices down, and global concerns are adding to the pressure. US tech stocks are continuing to decline, which could impact today’s trading.

In derivatives trading, Gift Nifty closed at 25,199 on Thursday night. This morning, it dipped to 25,137 before rising to 25,150. This indicates a likely lower opening for the Indian market today.

US, European, Asian markets 

European markets fell for the fourth consecutive day on Thursday. US markets rose at the start of yesterday’s session but eventually turned lower. Private-sector jobs in August grew by only 96,000, far below the expected 161,000, fuelling recession fears. Markets reacted with a broad sell-off, pushing stocks and cryptocurrencies lower, while gold climbed. A significant report on US non-farm payrolls is expected today, which could influence the upcoming Federal Open Market Committee (FOMC) meeting on September 17-18.

The Dow Jones fell 219.22 points (-0.54%) to close at 40,755.75, while the S&P 500 dropped 16.66 points (-0.30%) to 5503.41. The Nasdaq, however, rose 43.37 points (+0.25%) to close at 17,127.66. US futures continue to point lower today, with the Dow down 0.07%, S&P 0.24%, and Nasdaq 0.61%.

Asian markets are sliding, as Japan’s data shows weakening private consumption, and China’s economy continues to show signs of strain.

Indian markets

On Thursday, Indian markets opened higher but reversed to close in the red, largely due to profit-booking. The mid-cap and small-cap indices gained, standing out against the broader decline.

The Sensex closed 151.48 points lower (-0.18%) at 82,201.16, and the Nifty dropped 53.60 points (-0.21%) to 25,145.10. Bank Nifty bucked the trend, rising 0.14% to close at 51,473.05. Mid-cap and small-cap indices showed strength, gaining 0.38% and 1.03% respectively.

Sectoral roundup

Sectors like realty, auto, oil & gas, and pharma lost ground yesterday, while banking, financials, IT, media, and metals saw gains. Foreign institutional investors sold ₹688.69 crore in the cash market on Thursday, while domestic investors purchased ₹2,970.74 crore.

Analysts noted that, despite the minor dips over the past two days, the overall trend remains positive. The Nifty index is expected to fluctuate within a narrow range, with support seen at 25,125 and 25,095, and resistance at 25,240 and 25,275.

Corporate updates

Reliance stock rose in the morning but ended down 1.26%. The company’s board approved a 1:1 bonus issue and increased its authorised share capital to ₹50,000 crore. Reliance also secured a tender for a 10GW electric battery plant as part of a ₹3,620 crore government project.

JP Morgan has projected a 40% rise in Zomato’s stock, and the share gained 5% yesterday. Meanwhile, steel stocks rallied after the government hinted at higher tariffs on Chinese steel imports.

Gold climbs, crude drags

Gold has surged past $2,500 an ounce, closing at $2,517.20 on Thursday. This morning, it remains steady at $2,516. Meanwhile, crude oil prices remain weak, with Brent closing at $72.69 a barrel. Cryptocurrencies are also down, with Bitcoin falling to $56,000.

The dollar index dropped to 101.11, but the rupee couldn’t capitalise, closing at ₹83.98 against the dollar.