Nifty Flatlines While Sensex Soars At Pre-Open Pointing To Mixed Start Ahead of RBI Policy 

Mumbai, August 5: Indian shares rose at pre open pointing to a higher start for benchmarks as investors hope interest rates will remain unchanged during central bank’s policy announcement today. Rallies across the globe and cooling crude will also be aiding sentiment at open. 

Nifty 50 rose 0.03% and Sensex advanced 0.8% at pre open while Gift Nifty rose 0.5%. 

Investors will also be parsing central bank commentary for clues on the inflation and growth outlook amid volatility in crude prices and monsoon shortfall.  

Also, a new closing-price framework for F&O stocks has left investors wary, after it caused the Nifty and Sensex to move out of sync and amplified market volatility over the last two sessions. 

The central bank had paused rates on June 5 and set up a concessional swap facility on June 8. The facility is open for FCNR(B) deposits till September 30. 

Asian Markets Rally On Global Risk-On Sentiment 

Asian equities advanced sharply on Wednesday, taking cues from Wall Street’s overnight rally. Japan’s Nikkei climbed 3%, while South Korea’s Kospi surged 3.6%, led by technology stocks tracking gains in their U.S. counterparts. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.2%, reflecting broad-based strength across the region. 

Investor sentiment improved after stronger-than-expected earnings and upbeat guidance from U.S. companies reinforced confidence in the artificial intelligence theme. Lower crude oil prices and easing geopolitical tensions further boosted risk appetite across global equity markets. 

Wall Street Hits Fresh Records On AI Optimism 

U.S. equities ended at record highs overnight, with the S&P 500 and the Dow Jones Industrial Average posting fresh closing peaks, while the Nasdaq Composite also finished higher. 

Technology stocks led the advance after AI-linked companies, including Palantir Technologies and Caterpillar, delivered stronger-than-expected results and optimistic forecasts, reinforcing expectations that investments in artificial intelligence will continue to drive corporate earnings. 

The earnings helped allay concerns over whether companies would generate adequate returns from their heavy AI-related spending, reigniting buying interest in the technology sector. 

Investors are now awaiting another round of corporate earnings and key U.S. economic data later this week for further clues on the health of the world’s largest economy and the Federal Reserve’s interest-rate trajectory. Treasury yields remained largely stable, while the U.S. dollar traded in a narrow range against major currencies. 

European Shares Rally To Record Highs 

European equities also strengthened global sentiment, with the pan-European STOXX 600 index closing at an all-time high. 

Technology stocks tracked overnight gains on Wall Street, while mining shares also advanced. A steady stream of upbeat corporate earnings and softer crude oil prices added to the positive momentum. 

Investors continued to monitor developments in the Middle East, although signs of easing geopolitical tensions reduced demand for safe-haven assets and encouraged flows into riskier assets such as equities. 

Corporate earnings remained a key market driver, with investors rewarding companies that delivered resilient results despite lingering macroeconomic uncertainties. 

Source

• exchanges