Nifty, Sensex May Open Flat; India VIX Falls Ahead of Key RBI Announcement
Foreign Institutional Investors (FIIs) turned net buyers on Wednesday, purchasing equities worth Rs 1,076.18 crore. Domestic Institutional Investors (DIIs) also continued their buying streak, investing Rs 2,566.82 crore.
Pre-Market Update at 8:00 AM: Indian stock indices, Nifty and Sensex, are expected to begin Thursday's trade on a cautious note. As of 7:24 AM, the GIFT Nifty was quoting near 24,740, indicating a modest gain of 24 points. The sentiment in Asian markets was mixed, mirroring Wall Street's flat finish, influenced by weaker US data.
Despite holding above the 20-day EMA—a sign of underlying support—Nifty Bank remains rangebound as investors await the Reserve Bank of India's policy announcement. This event could potentially inject fresh momentum into the markets and stir volatility.
Meanwhile, the India VIX, a gauge of market volatility, has declined by nearly 10 per cent over the past two sessions and currently stands at 15.74, down 4.89 per cent from the previous close.
Foreign Institutional Investors (FIIs) turned net buyers on Wednesday, purchasing equities worth Rs 1,076.18 crore. Domestic Institutional Investors (DIIs) also continued their buying streak, investing Rs 2,566.82 crore, making it their 12th consecutive session of net buying.
Indian equities bounced back after three days of losses. The Sensex ended the session higher by 260.74 points (0.32 per cent) at 80,998.25, while the Nifty 50 advanced 77.70 points (0.32 per cent) to close at 24,620.20.
Asian shares traded in a mixed range early Thursday after US indices showed a subdued performance overnight. The Dow Jones slipped 91.90 points (0.22 per cent) to 42,427.74. The S&P 500 ended nearly flat, adding just 0.44 points (0.01 per cent), while the Nasdaq gained 61.53 points (0.32 per cent) to close at 19,460.49.
Soft US economic data weighed on sentiment. The latest ADP report showed only 37,000 private jobs added in May—the lowest since March 2023. Additionally, the US services sector contracted slightly, with the ISM non-manufacturing PMI falling to 49.9, signaling a dip in activity.
Crude prices fell as inventories rose and Saudi Arabia reduced July crude prices for Asia. Brent slipped 0.25 per cent to USD 64.70 per barrel, and WTI dropped 0.41 per cent to USD 62.59.
Gold prices edged higher as investors sought safety amid soft US data. Spot gold was up 0.1 per cent at USD 3,377.79 an ounce, while US gold futures gained 0.1 per cent to USD 3,401.20.
For today, Manappuram Finance and Aditya Birla Fashion Retail continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.