Indian benchmark indices are likely to open lower on August 25, tracking the weak trend in GIFT Nifty, which was trading around 24,166.50 in early trade.
Benchmark equity indices Sensex and Nifty ended lower on Monday as persistent geopolitical tensions and elevated crude oil prices hampered risk appetite.
Investors remained cautious ahead of fresh US sanctions on Iran. Rupee fell 3 paise to close at 95.74 (provisional) against US dollar.
Asian Equities: Asian equities declined, tracking losses on Wall Street, as investors reduced exposure to technology stocks ahead of earnings reports that could test optimism surrounding the artificial intelligence trade.
US Markets: US equities ended mixed on Monday, with the S&P 500 and Nasdaq slipping as technology stocks came under pressure. Investors assessed fresh US economic pressures related to Iran and looked ahead to Nvidia’s earnings and a closely watched inflation report due later this week. The Dow Jones Industrial Average gained 140.15 points, or 0.26 per cent, to 53,417.16, while the S&P 500 fell 21.51 points, or 0.28 per cent, to 7,652.86. The Nasdaq Composite declined 200.26 points, or 0.76 per cent, to 25,980.19.
Dollar Index: The dollar index edged lower against a basket of major currencies in early trade on Tuesday.
US Bond Yield: US Treasury yields were largely unchanged in early trade, with the 10-year Treasury yield at 4.70 per cent and the 2-year Treasury yield at 4.24 per cent.
Asian Currencies: Asian currencies traded mixed against the US dollar. The Indonesian rupiah fell 0.15 per cent, while the South Korean won rose 0.15 per cent. The Thai baht and Taiwan dollar strengthened 0.10 per cent and 0.05 per cent, respectively, while the Singapore dollar and Malaysian ringgit gained 0.04 per cent and 0.02 per cent. Meanwhile, the Japanese yen declined 0.02 per cent, while the Philippine peso and Chinese renminbi slipped 0.05 per cent and 0.03 per cent, respectively.
Crude: Oil prices were largely steady on Tuesday after declining more than 2 per cent in the previous session, as investors assessed the impact of tougher US secondary sanctions on Iran. Both benchmarks fell over 2 per cent on Monday, with US crude hitting a one-week low amid profit-taking following a rally over the past two weeks.
Gold: Gold prices traded near a three-month high as investors assessed the US Treasury’s next steps in the bond market following a surprise intervention that renewed concerns over fiscal policy.
Fund Flow Action: Foreign institutional investors (FIIs) turned net buyers on August 24, purchasing equities worth Rs 1,181 crore. Meanwhile, domestic institutional investors (DIIs) continued their buying spree for the 10th straight session, investing Rs 2,493 crore.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Akshat Mittal is the Chief Copy Editor at ET NOW with over 6 years of experience, specialising in Markets, Personal Finance, and General News. Before joining ET NOW, he worked with prominent media organisations and has reported on numerous major events firsthand.
He has also conducted several high-profile interviews on topics such as the 8th Pay Commission and the IMF’s loan to Pakistan amid Operation Sindoor.
Akshat has been involved in numerous key business launches, covering these events on the ground. His articles are widely published in national magazines and newspapers, where he has conducted several interviews with prominent political figures.
He was the first to bring out the IMF spokesperson’s statement on the voting pattern of the Executive Directors, following reports claiming that ‘no is not an option’ in the IMF voting procedure.
Akshat is passionate about public speaking and has delivered numerous lectures at colleges and schools. He also served as a member of a Youth Parliament in Delhi.
