Pre-Open Points To Higher Start For Benchmarks After Two-Session Losing Streak

Mumbai, August 28: Indian shares rose at pre open signalling a higher start for benchmarks which have been on a losing streak for two sessions even though investors await commentary from Federal Reserve later in the day. 

Nifty 50 rose 0.15% and Sensex advanced 0.29% at pre open.  

The Nifty 50 has fallen 1% over the past two sessions and is on track to end the week lower for a third consecutive week, pressured by elevated crude prices and U.S. Treasury yields.  

Thursday’s monthly derivatives expiry was marked by unusually volatile trading in India’s cash and derivatives markets. Turnover in BSE index derivatives was the lowest in 11 months for a monthly expiry session, while the Sensex saw sharp swings during the closing auction. The volatility also caused unusual spikes in premiums for expiring monthly Sensex options.  

Foreign investors turned sellers on Thursday, offloading Indian equities worth Rs 298 crore ($31.19 million), provisional exchange data showed. Despite the latest selling, they have been net buyers of Indian shares worth $3.15 billion in August so far — their strongest monthly inflow since September 2024 — reducing year-to-date outflows to $24 billion.  

Spotlight will fall on Lenskart as Alpha Wave Ventures is looking to offload up to 20.8 million shares of the eyewear retailer through a block deal, according to media reports.  

Wipro, an IT services firm, has expanded its partnership with Google Cloud to accelerate the adoption of artificial intelligence across core enterprise functions.  

Jefferies started coverage on the asset manager SBI Funds Management with a “buy” rating, pointing to its exclusive tie-up with State Bank of India and strong positioning in India’s rapidly growing Tier-2 and smaller cities. 

Asian Markets Trade Mixed 

Asian stocks mostly edged higher, with technology shares drawing support from Nvidia’s bullish forecast and renewed optimism around AI spending. However, investors remained cautious ahead of Federal Reserve Chair Kevin Warsh’s comments at the Jackson Hole symposium later on Friday. 

Japan’s Nikkei gained around 0.8%, while Taiwan’s benchmark rose 1.15%. Hong Kong’s Hang Seng added 0.26%, while South Korea’s KOSPI fell 1.08%. 

The MSCI Asia-Pacific index excluding Japan rose 0.32%, as investors assessed whether the Nvidia-led rally could broaden across global technology stocks. 

The mixed regional performance suggests investors are reluctant to make large bets ahead of the Fed commentary, despite the strong U.S. technology rally. 

Nvidia Drives Wall Street Higher 

U.S. stocks ended sharply higher on Thursday, led by technology shares after Nvidia delivered strong quarterly results and projected robust growth, reinforcing expectations of sustained demand for AI infrastructure. 

The S&P 500 gained 0.7%, while the Nasdaq climbed 1.6% and the Dow Jones Industrial Average added 0.2%. Nvidia shares jumped 8.7% after the chipmaker forecast roughly 70% revenue growth for the fiscal year ending January 2028. 

The S&P 500 technology sector surged more than 3%, making it the strongest-performing major sector. 

Oil Eases As Supply Concerns Moderate 

Brent crude fell 0.3% to around $89.40 a barrel on Friday, while prices were headed for a weekly decline of about 5% as hopes of diplomatic progress around the Strait of Hormuz eased some supply concerns. 

Crude, however, remained elevated amid persistent geopolitical risks and uncertainty over oil flows through the key shipping route. 

For India, lower oil prices would be a positive, given its dependence on crude imports. A sustained decline could ease inflationary pressures, narrow the trade deficit and support margins for fuel-intensive companies. 

Airlines, paints, chemicals and consumer companies could benefit from softer crude, while upstream producers may face pressure if prices remain lower. 

Fed Commentary In Focus 

Investors will closely watch Warsh’s comments at Jackson Hole for signals on the U.S. interest-rate outlook. Treasury yields remained relatively steady as markets awaited further clues on inflation and the potential trajectory of rate cuts. 

Source

•  Exchanges