Nifty and Sensex Expected to Open Higher Following US Tech Stock Gains
Looking at recent institutional activity, on June 3, FIIs sold equities worth Rs 5,907.97 crore, whereas DIIs purchased shares totalling Rs 2,853.83 crore.
Pre-Market Update at 8:00 AM: On Wednesday, June 4, Indian equity indices are expected to open on a positive note. As of 7:28 AM, the GIFT Nifty was trading around 24,719, up 54 points from its previous close. The rally in Asian markets and gains in US tech stocks overnight helped boost investor sentiment. However, while Domestic Institutional Investors (DIIs) have been consistent net buyers for the past eleven sessions, Foreign Institutional Investors (FIIs) have been net sellers for the last three sessions, which remains a concern for the market.
Today, stainless-steel tubes and pipes manufacturer Scoda Tubes Ltd is set to list its shares on the stock exchange following its recent IPO.
Looking at recent institutional activity, on June 3, FIIs sold equities worth Rs 5,907.97 crore, whereas DIIs purchased shares totalling Rs 2,853.83 crore. The continued buying by DIIs contrasts with the sustained selling pressure from FIIs.
Tuesday saw a sharp decline in Indian markets, driven by worries over high valuations and ongoing foreign fund outflows. The Sensex dropped 636.24 points (0.78 per cent) to close at 80,737.51, while the Nifty 50 fell 174.10 points (0.70 per cent) to 24,542.50.
In Asia, markets rose on Wednesday, supported by the strong performance of US technology stocks the previous night. However, Hong Kong’s Hang Seng index showed signs of a weaker start. Meanwhile, Japan’s services sector growth slowed in May, with the final au Jibun Bank Japan Services PMI falling to 51.0 from 52.4 in April but slightly exceeding the preliminary estimate of 50.8.
On Wall Street, Tuesday closed on a positive note with tech stocks leading the gains amid growing optimism about global trade talks. The Dow Jones Industrial Average rose 214.16 points (0.51 per cent) to 42,519.64, the S&P 500 gained 34.43 points (0.58 per cent) to 5,970.37, and the Nasdaq Composite added 156.34 points (0.81 per cent) to 19,398.96.
Job openings in the US increased in April, reaching 7.391 million, according to the latest JOLTS report, despite a rise in layoffs. Factory orders, however, declined sharply by 3.7 per cent in April after a 3.4 per cent rise in March.
In currency markets, the US dollar saw a slight dip on Wednesday, with the dollar index remaining steady near 99.159. Crude oil prices retreated from recent highs, with Brent crude closing down 0.17 per cent at USD 65.52 per barrel and US West Texas Intermediate (WTI) futures slipping 0.20 per cent to USD 63.28 per barrel.
For today, Manappuram Finance continue to remain under the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.