Market Pulse: GIFT Nifty Dips as Asia Joins the Red; All Eyes on RIL, Tata Tech Q2

The Indian equity markets started the last trading day of the week on a cautious note as the GIFT Nifty futures slipped 49 points to 25,607, signaling a subdued opening for benchmark indices. The negative sentiment stems largely from weak overseas trends, particularly after Wall Street’s overnight losses fuelled by renewed banking sector jitters and US-China trade tensions.

In Asia, major indices also traded lower with Japan’s Nikkei down around 1%, Australia’s ASX 200 declining 0.6%, and South Korea’s Kospi down nearly 0.5%. Investors globally are digesting mixed economic data while bracing for inflation figures from the Euro Area and US import-export reports.

Back home in India, market participants are closely watching the Q2 financial results of some heavyweight companies slated for release today, including Reliance Industries (RIL) and Tata Technologies. The results will provide clues on corporate earnings momentum amid macroeconomic challenges like banking sector stresses and currency fluctuations.

Additionally, investors anticipate fresh data on bank loan growth and foreign exchange reserves to gauge the economy’s health. Yesterday, the broader market saw foreign portfolio investors return as net buyers, indicating cautious optimism.

Key Highlights:

GIFT Nifty futures fell by 49 points to 25,607, indicating a softer start.

Asian markets were mostly in the red: Nikkei (-1%), ASX 200 (-0.6%), Kospi (-0.5%).

Wall Street closed lower; S&P 500 down 0.63%, Nasdaq down 0.47%, Dow Jones off 0.65%.

Market focus today on Q2 earnings from RIL, Tata Technologies, and several other large corporates.

Investors await inflation data from the Eurozone and US trade data for cues.

Domestic data on bank loan growth and forex reserves will be key market drivers.

FPIs turned net buyers with Rs 997 crore purchases; DIIs maintained net buying streak.

Commodities remained under pressure with oil prices nearing $61 a barrel; gold and silver hit record highs.

The muted sentiment is tempered by anticipation of earnings updates which could set the trajectory for equities ahead of the weekend.

Sources: Business Standard, Economic Times, NDTV Profit, Moneycontrol, The Hindu Business Line