Indian benchmark indices, Sensex and Nifty, are expected to open on a flat note on Thursday amid volatile global markets. With no domestic triggers, analysts expect the market to align with global sentiment. Overnight, US stocks were volatile after opening on a high note. Major US indices closed with marginal gains.
Kelvin Wong, Senior Market Analyst, OANDA, said that major US bench stock indices (S&P 500, Nasdaq 100, Dow Jones Industrial Average & Russell 2000) started on a weak footing in September. “The Nasdaq 100 was the worst performer (-3.15%) on Tuesday, 3 September dragged down by the higher-beta technology sector (Nvidia & other semiconductor stocks). Recent weak performance of Nvidia (ex-post Q2 earnings) may trigger a negative liquidity cascading effect, in turn, a potential jump in the VIX.”
Gift Nifty at 25,360 signals a gap-up opening of 100 points for Nifty.
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd, “ Going ahead, it is crucial to stay vigilant about global developments, as they can significantly impact the intermediate trend for our markets. While our domestic market shows strength, it is essential to proceed thoughtfully, adopt a practical approach, and focus on selective stock choices for superior performance.”
According to Amit Goel, Co-Founder & Chief Global Strategist of Pace 360, “This week, a tonne of US economic statistics are scheduled to be released, including figures on job openings, unemployment claims, and the much-anticipated nonfarm payrolls report on Friday. If the data is hawkish there could be a bond market sell-off which has negative implications for equities. On the other hand, dovish data may give fillip to the recession fears again causing an equity sell-off.”
Meanwhile Asian stocks are mixed. While Japan stocks are down, Korean and Australian stocks eke out marginal gains.
Motilal Oswal Financial Services has highlighted in its August round-up that India’s outperformance continues amid global volatilities. According to it, the Indian market is at an all-time high but underperforms key global markets in Aug’24; MSCI India’s outperformance continues; Nifty Mid-cap index outperforms key global indices in the last 10 years; Healthcare, Technology, and Consumer among the top gainers in Aug’24; Dominance of large companies reduces as broad-basing of market continues; DIIs clock the highest ever yearly flows; NSE-500: FII’s ownership across sectors shows high sectoral rotation; DII’s ownership across sectors depicts broad-based improvement; forex reserves hit an all-time high of $682b; and India’s market capitalisation-to-GDP ratio at an all-time high.