Domestic markets are expected to open weak on Wednesday. Nifty may finally end its 14-day-long rally due to global pressure, said analysts. Gift Nifty at 25,170 against Nifty futures value of 25,340 signals a gap-down opening of 170 points in the opening session. However, buying from foreign portfolio investors and domestic institutions could minimise the loss, they added.
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Equities across Asia plunged in early deals on Wednesday, led by tech firms. This followed a sharp slide in Nvidia shares and disappointing data on US factory activity that revived recession fears. Tokyo and Taipei slumped three per cent each, while Korea’s Kospi was down over two per cent. Others in the region are down more than one per cent.
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However, analysts expect domestic markets to stay resilient.
According to them, the market is in a consolidation phase, and this is likely to continue.
Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said Markets consolidated at a higher zone after making a fresh high above 25300 levels in the previous session. “Although intermittent volatility cannot be ruled out, we expect the market to see a gradual up move with sectorial rotation, supported by rising hope of the US rate cut and FIIs turning buyers,” he added.
Deepak Jasani, Head of Retail Research, HDFC Securities, said: Nifty rose for the fourteenth consecutive session on Sept 03. According to him, Global stocks were largely muted on Tuesday as traders prepared for data releases that will offer insight about the health of the US economy and the Federal Reserve’s interest-rate path. India’s GDP growth is expected to remain strong at 7% in fiscal 2025, according to the latest forecasts by the World Bank.
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Published on September 4, 2024
https://www.thehindubusinessline.com/markets/sensex-nifty-to-open-gap-down-as-global-market-selloff-weighs-on-sentiment/article68603758.ece
