GIFT Nifty Signals Gap-Down Start Amid Global Market Cues
Stay updated with the latest stock market news as GIFT Nifty signals a gap-down start. Read about global market trends, including flat performance in US markets and gains in Asia, and find out which sectors to watch.
GIFT Nifty October 03, 2024, New Delhi – The Indian stock market is expected to witness a gap-down start today, as indicated by the GIFT Nifty, due to mixed global cues. US markets ended flat, while Asian stocks showed some gains. Investors are keeping a close eye on economic data and geopolitical tensions in the Middle East, creating a cautious atmosphere.
US Markets End Flat, Await Jobs Data
On Wednesday, the S&P 500 saw minimal movement, gaining only 0.01%, while technology stocks provided some upward momentum. Investors remained cautious as they awaited additional labor market data from the US. The Dow Jones Industrial Average rose slightly by 0.09%, closing at 42,196.52 points, while the Nasdaq Composite added 0.08% to finish at 17,925.12.
While technology shares saw a slight uptick, uncertainty about labor data and Middle East tensions kept investors on edge. This lackluster performance in the US markets is one of the factors contributing to the expected weak start for Indian markets.
Indian Market Performance
On Tuesday, Indian indices continued their downward trend for the third consecutive session. The Sensex ended the day down by 33.49 points or 0.04%, closing at 84,266.29, while the Nifty shed 13.95 points or 0.05%, ending at 25,796.90. The market remained closed on October 2 in observance of Mahatma Gandhi Jayanti.
The declining performance in the Indian markets has been largely attributed to a widening current account deficit and weak manufacturing data, which has dampened investor sentiment.
Sector Highlights: Mixed Performance
Among the top gainers in the Nifty on Tuesday were Tech Mahindra, M&M, Britannia Industries, Adani Enterprises, and Infosys. These companies saw a surge in buying activity, reflecting positive investor sentiment in the media, auto, and IT sectors.
On the other hand, IndusInd Bank, ONGC, Asian Paints, Bajaj Auto, and Titan Company emerged as the top losers. Sectors like telecom, power, FMCG, Oil & Gas, and real estate witnessed significant selling pressure.
The BSE Midcap index saw a 0.3% rise, while the Smallcap index gained 0.5%, signaling some investor interest in smaller stocks, despite the broader market trend.
| Sector | Performance |
|---|---|
| Media, Auto, IT | Positive |
| Telecom, Power, FMCG, Oil & Gas, Realty | Negative |
| BSE Midcap | +0.3% |
| BSE Smallcap | +0.5% |
Global Market Outlook
Globally, market participants are watching developments in the Middle East and awaiting crucial economic data. The upcoming labor data in the US is expected to provide more clarity on the direction of the global economy. This week’s data could potentially influence the US Federal Reserve’s decisions on interest rates, a factor that global markets are closely monitoring.
Meanwhile, Asian markets showed some recovery with modest gains on Wednesday, reflecting optimism in certain regions. However, investor sentiment remains fragile, influenced by rising oil prices and continued geopolitical tensions.
What to Expect Today
With the GIFT Nifty indicating a gap-down opening, Indian investors are expected to remain cautious. However, sectors like IT, media, and auto could see selective buying interest, as has been the trend over the past few days. The volatility in global markets, along with domestic factors like economic data and corporate earnings, will play a key role in shaping market performance today.
As always, it is essential for investors to stay informed and make cautious, well-researched decisions in such uncertain market conditions.
