Indian stock market: How 7 Overnight Market Shifts Could Affect Your Stock Picks Today

Friday, August 30, 2024 – The Indian stock market experienced a rollercoaster ride overnight, with the GIFT Nifty dipping and the Dow Jones Industrial Average reaching a record close, all while the US GDP figures underwent significant changes. This article delves into the key events that shaped the market’s overnight performance.

Overnight Trading: A Game-Changer for Investors

Overnight trading has become a popular option for investors who want to take advantage of market opportunities outside regular trading hours. This type of trading allows investors to buy or sell assets between the market close and the next day’s open, providing flexibility and potential for profit.

GIFT Nifty: A Dip in the Overnight Session

The GIFT Nifty, which tracks the performance of the Indian stock market during the overnight trading session, experienced a decline of 0.27% to 22,579.00. This dip was likely influenced by the mixed performance of global markets and the shifting US GDP figures.

Dow Jones: A Record Close Amid Volatility

In contrast to the GIFT Nifty’s performance, the Dow Jones Industrial Average reached a record close overnight. However, this achievement was overshadowed by the overall volatility in the US markets, with the S&P 500 dropping by almost 1% and the Nasdaq Composite declining by 1.46%.

US GDP: A Disappointing Surprise

The US Bureau of Economic Analysis reported a 1.6% increase in the US Gross Domestic Product (GDP), falling short of the Dow Jones forecast of 2.4%. Additionally, consumer prices saw a substantial rise of 3.4%, compared to the previous quarter’s 1.8% increase. These figures raised concerns over the Federal Reserve’s anticipated rate cuts and suggested ongoing inflation in the economy.

Global Markets: A Mixed Bag

European markets exhibited contrasting performances, with the FTSE recovering from the previous session’s losses but the DAX and CAC experiencing a 1% decline. Asian indices also displayed mixed trends, with the Nikkei witnessing a substantial 2% drop and the Hang Seng surging 0.48%.

Indian Indices: A Positive Close

Despite the global market volatility, the Indian indices ended the day on a positive note. The Nifty rose 0.75% to 22,570.35, approaching its all-time high of 22,775.70, while the Sensex closed 0.66% higher at 74,339.44.

Institutional Investors: A Shifting Landscape

Domestic Institutional Investors (DIIs) purchased Rs 6,167.56 crores, while Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) continued their selling spree, recording net sales of Rs 2,823.33 crores for the day. This shift in investment patterns can significantly impact the market’s performance.

Commodity Prices: A Downward Trend

Crude oil prices continued their downward trend, with a 0.45% decrease to $82.44 and Brent falling 0.22% to $87.83. The decline in commodity prices can have far-reaching effects on various sectors of the economy.

Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock