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The Indian stock market is predicted to open higher on August 30th, driven by positive signals from the GIFT Nifty, which is currently trading near 25,288.5. This optimistic outlook follows a strong performance on August 29th, where benchmark indices Sensex and Nifty 50 reached new record highs. This surge was primarily fueled by heavyweight Reliance Industries, which announced its plans to consider a bonus share issue on September 5th.
Looking at the global scene, Asian markets are also trending upwards in early trading. The positive sentiment stems from the release of US economic data that alleviated recessionary concerns. Additionally, investors are carefully evaluating a series of data points originating from Japan. The Dow Jones Industrial Average achieved a record-breaking high close on Thursday, fueled by robust US economic data. Despite this positive trend, Nvidia, a leading artificial intelligence chipmaker, experienced a decline after its in-line forecast failed to impress investors.
The US economy showcased stronger-than-expected growth, driven by robust consumer spending, further strengthening the expectation that the US is likely to avoid a recession. While the S&P 500 index ended virtually unchanged, just below its July record high, the Nasdaq experienced a slight decline. The anticipation for a potential interest rate cut in September remains strong. In the currency market, the dollar strengthened against major currencies, snapping a five-week losing streak, driven by the positive US economic data, which dampened expectations of aggressive Federal Reserve interest rate cuts.
Gold prices dipped slightly, while silver prices edged upward. Oil prices maintained a steady position as investors balanced supply concerns in the Middle East with signs of weakening demand. Commodities on the London Metal Exchange (LME) experienced a downturn in early trading, with lead and aluminium experiencing the most significant declines.
Foreign institutional investors (FIIs) injected Rs 3259 crore into Indian equities on August 29th, while domestic institutional investors (DIIs) continued their buying spree, contributing Rs 2690 crore on the same day. The article concludes by offering a hopeful outlook for the day's trading, wishing investors a profitable day ahead.