Markets bullish for seventh consecutive day; FIIs back as buyers

The market shows a bullish trend for the seventh consecutive day, despite less-than-encouraging global cues and ongoing selling pressure. However, the return of foreign investors as buyers is bolstering the bulls.

U.S. markets declined yesterday, and Asian markets began trading lower this morning, dampening enthusiasm. Crude oil prices have risen again as ceasefire efforts in Gaza stall. The belief that the Federal Reserve might reduce interest rates by a quarter percent in September led to a decline in U.S. equities and gold yesterday. However, U.S. futures are showing signs of recovery today, with a crucial statement from the Fed chairman expected later.

In derivatives trading, GIFT Nifty closed at 24,817 on Thursday night and rose to 24,840 this morning, indicating a slight gain for the Indian market today.

The foreign market scenario

European markets closed with minor gains on Thursday. After a positive start on Thursday, the U.S. markets gradually declined, ending in losses. The market is anxious about what Federal Reserve Chairman Jerome Powell will say at the Jackson Hole meeting today, with investors anticipating signals on the extent of interest rate cuts in September. Despite housing sales data meeting expectations, concerns over certain negative factors also impacted the market.

On Thursday, the Dow Jones Index fell by 177.71 points (0.43%) to close at 40,712.80. The S&P 500 lost 50.21 points (0.89%), finishing at 5570.60, while the Nasdaq dropped by 299.63 points (1.67%) to close at 17,619.30.

U.S. futures are on the rise today, with the Dow up by 0.12%, the S&P by 0.20%, and the Nasdaq by 0.34%.

Asian markets are currently trading lower. Japan’s Nikkei started 0.40% higher but soon shifted into losses, while South Korea’s Kospi is down by half a percent.

The Indian markets 

On Thursday, the Indian market started higher and ended with minor gains. Banking, finance, realty, consumer durables, metal, and FMCG sectors saw gains, while IT, auto, pharma, healthcare, oil & gas, and media sectors suffered losses.

The Sensex rose by 147.89 points (0.18%) to close at 81,053.19, and the Nifty gained 41.30 points (0.17%) to finish at 24,811.50. Bank Nifty climbed by 0.59% (300.15 points) to close at 50,985.70.

The Mid-cap index increased by 0.69% to 58,844.85, while the Small-cap index rose by 0.17% to 19,099.60.

Foreign investors purchased shares worth ₹1,371.79 crore in the cash market on Thursday. Domestic funds and institutions also bought shares worth ₹2,971.80 crore.

The market remains bullish, with expectations that the Nifty could breach the 24,950-25,000 mark if it stays above 24,800. The Nifty has support at 24,790 and 24,770, with resistance at 24,855 and 24,875.

Gold drops, crude oil rises

As the Fed chairman prepares to make a crucial statement on interest rates, uncertainty looms over the gold and bond markets. Such volatility is common ahead of critical decisions. The yield on 10-year U.S. Treasuries rose to 3.875% yesterday.

Gold, which reached a record high of $2,531.60 in anticipation of a rate cut, fell on new concerns and selling pressure from profit-takers. Some experts had speculated a 50 basis point (half percent) rate cut in September, but as this appears unlikely, gold prices have dropped. The strengthening dollar also contributed to the decline. Gold futures for December dropped to $2,518.90, while the spot price closed at $2,485.70 after dipping to $2,479.34. This morning, the price has risen slightly to $2,490.

In Kerala, gold prices fell by ₹240 per sovereign to ₹53,440 yesterday. Prices are expected to drop further today.

Silver is trading at $29.00 per ounce.

The dollar index rebounded, rising by 48 points to close at 101.51, though it slipped to 101.43 this morning.

The rupee weakened further yesterday, with the dollar gaining 3 paise to close at ₹83.95.

Crude oil prices have inched higher. Hamas has yet to agree to a ceasefire in Gaza, leading to market concerns over the failure of new diplomatic efforts. Brent crude closed 1.5% higher at $77.22 yesterday and climbed to $77.33 this morning. WTI crude is at $73.16, and UAE's Murban crude is at $76.77.

Base metals were mixed. Copper fell by 0.82% to $9,060.90 per tonne, while aluminium dropped by 0.22% to $2,470.35 per tonne. Zinc, tin, and lead gained up to 1%, but nickel slid by 1.85%.

Cryptocurrencies were volatile yesterday. Bitcoin fell to $60,500, while Ethereum is trading at $2,625.

Market Indicators (August 22, Thursday)

Sensex 30: 81,053.19 (+0.18%)
Nifty 50: 24,811.50 (+0.17%)
Bank Nifty: 50,985.70 (+0.59%)
Mid Cap 100: 58,844.85 (+0.69%)
Small Cap 100: 19,099.60 (+0.17%)
Dow Jones 30: 40,712.80 (+0.43%)
S&P 500: 5570.60 (-0.89%)
Nasdaq: 17,619.30 (-1.67%)
Dollar ($): ₹83.95 (+₹0.03)
Dollar Index: 101.51 (+0.48)
Gold (Ounce): $2,485.70 (-$26.80)
Gold (Sovereign): ₹53,440 (-₹240)
Crude (Brent) Oil: $77.22 (+$1.06)