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The article opens with the prediction that Indian equity indices, BSE Sensex and NSE Nifty 50, will likely see a higher opening on Thursday, based on the positive signal from GIFT Nifty. GIFT Nifty, a benchmark index traded on the Gujarat International Finance Tec-City (GIFT) exchange, is used to gauge the sentiment of the Indian stock market and is considered a predictor of the opening of the domestic markets.
Further analysis reveals that the US markets ended on a positive note, with the S&P 500 jumping 1.58%, Nasdaq Composite soaring 2.64%, and the Dow Jones Industrial Average advancing by 0.24%. This surge is attributed to Federal Reserve Chairperson Jerome Powell's decision to keep interest rates unchanged, although he hinted at a possible rate cut in September. Powell's statement suggests that the Fed is closely monitoring economic data and may consider lowering rates if inflation falls back towards its 2% target and the unemployment rate continues to rise.
The article then delves into the impact of these developments on other key markets. The US Dollar Index (DXY) was trading down 0.47% on Thursday morning, while WTI and Brent crude prices were up 0.95% and 0.83% respectively. Asian markets, following the overnight gains in the US markets, were largely trading higher with the exception of Japan's Nikkei 225, which tumbled by 2.83%.
The article also highlights the activities of Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII). FIIs sold shares worth Rs 3,462.36 crore, while DIIs bought shares worth Rs 3,366.51 crore on July 31, 2024. This information is crucial for understanding the overall sentiment and investment flow in the Indian stock market.
Finally, the article presents the expert opinion of Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas. Gedia suggests that the Nifty is poised for a breakout after consolidating in a range and predicts a short-term target of 25350 – 25530. He also expects a bullish move in the indices going forward. Similar optimism is expressed for the Bank Nifty, which is predicted to resume its upmove towards 52000 – 52120.
The article provides valuable insights into the factors influencing the Indian stock market, including global economic indicators, investor sentiment, and expert analysis. It serves as a comprehensive guide for investors looking to understand the potential direction of the markets in the coming days.