Market Poised for Positive Start

26 Aug 2024 , 09:13 AM

The market is poised for a positive start today, with Nifty futures trading at 24,914.5 as of 7:10 AM IST. The domestic stock market ended last week on a high note, marking its second consecutive week of gains. In the coming week, all eyes will be on the markets as they react to US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. Powell hinted that interest rate cuts might be on the horizon, which has sparked optimism among investors.

On the previous trading day, the Sensex gained 80.12 points, or 0.10%, closing at 81,133.31, while the Nifty rose by 11.70 points, or 0.05%, ending at 24,823.20.

Asian markets showed strength early Monday, with stocks advancing and the yen gaining ground. Investors are positioning themselves ahead of the anticipated rate cuts by the Federal Reserve, expected to begin next month. Australian and Korean markets saw gains following Powell’s speech, where he indicated a shift towards monetary easing. This dovish stance also strengthened the yen against the dollar as funds in Asia added to short positions on the greenback. Meanwhile, Japanese stocks declined, and US equity futures remained steady.

In the US, stocks rallied on Friday after Powell’s dovish comments solidified expectations for a rate cut in September. The Dow Jones Industrial Average climbed 462.3 points, or 1.14%, to close at 41,175.08. The S&P 500 gained 63.97 points, or 1.15%, reaching 5,634.61, while the Nasdaq Composite rose 258.44 points, or 1.47%, to settle at 17,877.79.

Foreign institutional investors (FIIs) continued their buying spree, purchasing equities worth ₹1,944 crore on August 23. Domestic institutional investors also joined in, buying equities worth ₹2,896 crore on the same day.