Stock Market Today, August 3: GIFT Nifty signals strong opening - 9 key triggers to WATCH

Stock Market Today, August 3: Indian benchmark indices are expected to start Monday's session on a positive note, taking cues from GIFT Nifty, which was trading around the 24,565 mark in early trade.

The Indian benchmark indices, Sensex and Nifty, closed higher for the third consecutive day on Friday, amid positive global cues and tracking a sharp rally in Bajaj Finance and foreign fund inflows.

The 30-share BSE Sensex gained 166.49 points, or 0.21 per cent, to settle at a more than three-week high of 78,094.64. During the day, the index jumped 344.1 points, or 0.44 per cent, to 78,272.25. 16 of its 30 constituents ended higher while 14 settled with losses. The 50-share NSE Nifty rose by 66.45 points, or 0.27 per cent, to end at a three-week high of 24,383.60.

9 key market triggers to watch

GIFT Nifty: GIFT Nifty traded higher at around 24,565 in early deals, signalling a firm start for Indian benchmark indices.

Asian Equities: Asian markets witnessed weakness, with South Korean stocks declining sharply as investors booked profits in heavyweight chipmakers following Friday’s record rally and pared leverage-driven positions. The Kospi Index fell as much as 5.5 per cent in early trade, while Samsung Electronics and SK Hynix dropped nearly 9 per cent each.

US Equities: Wall Street closed higher on Friday, supported by gains in Amazon after the tech giant’s strong quarterly earnings reinforced optimism around AI-related stocks. However, Apple came under pressure as investors reacted negatively to its results. The S&P 500 advanced 0.70 per cent to close at 7,489.72, while the Nasdaq Composite gained 1 per cent to settle at 25,373.85. The Dow Jones Industrial Average rose 0.53 per cent to 52,485.03. Despite the broader market gains, declining stocks outnumbered advancing ones on the S&P 500 by a ratio of roughly 1.3-to-1.

Dollar Index: The US dollar reversed its early gains and fell against the Japanese yen on Monday, keeping market participants alert to the possibility of further intervention by Japanese authorities to support the domestic currency.

US Bond Yield: US Treasury yields edged lower in early Monday trade, with the benchmark 10-year Treasury yield falling nearly 4 basis points to 4.69 per cent, while the 2-year Treasury yield declined more than 4 basis points to 4.24 per cent.

Asian Currencies: Most Asian currencies advanced against the US dollar in early trade, reflecting broad-based weakness in the greenback. The Japanese yen led the gains with an appreciation of 0.723 per cent, followed by the South Korean won (0.669 per cent) and the Indonesian rupiah (0.494 per cent). The Philippine peso (0.339 per cent), Thai baht (0.303 per cent) and Singapore dollar (0.211 per cent) also strengthened, while the Taiwan dollar (0.105 per cent) and Malaysian ringgit (0.061 per cent) posted modest gains. The Chinese renminbi remained largely stable, edging up just 0.006 per cent.

Crude Oil: Oil prices declined on Monday as growing hopes of easing tensions in the Middle East reduced geopolitical risk concerns. Meanwhile, global equity markets traded cautiously, while the Japanese yen surged after the United States and Japan confirmed joint intervention to support the weakened currency.

Gold Prices: Gold prices edged higher on Monday as crude oil prices retreated after US President Donald Trump refrained from launching a fresh attack on Iran, raising hopes for a swift diplomatic resolution. The move helped ease concerns over inflationary pressures and the prospect of higher interest rates.

Fund Flow Action: Foreign Institutional Investors (FIIs) continued their buying streak for the fourth straight session on July 31, with net equity purchases worth Rs 277 crore. Domestic Institutional Investors (DIIs) also supported market sentiment, emerging as net buyers with equity inflows of Rs 2,260 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.)