Stock Market Today: GIFT Nifty Signals Weak Opening; US and Asian Markets Tumble

Friday, August 1: Indian markets are poised for a nuanced start on Friday, with the GIFT Nifty indicating a mild upside in early trade, contrasting with a broader global market downturn. This comes as investors continue to assess the impact of recent US tariff announcements and await crucial US jobs data.

GIFT Nifty Indicates Mild Upside in Early Trade

Contrary to earlier expectations of a weak opening, the GIFT Nifty turned marginally positive on Friday morning. As of 8:30 IST, the index was trading at 24,748.50, reflecting a gain of 42 points or 0.17%. It commenced the day at 24,722.50, recorded an intraday low of 24,710.50, and subsequently climbed to an intraday high of 24,739.00. The previous closing price for the index stood at 24,706.50.

Global Market Cues Remain Cautious

Global markets remain under considerable pressure following the United States’ imposition of steep tariffs on multiple trading partners. Asian indices responded negatively, with South Korea’s Kospi notably plunging by 2.7%, as investors keenly awaited key U.S. jobs data, which could significantly influence the Federal Reserve’s upcoming interest rate decision.

On Wall Street, major indices closed lower overnight; the Dow Jones Industrial Average declined by 330.30 points (0.74%) to finish at 44,130.98, the S&P 500 dropped 23.51 points (0.37%) to 6,339.39, and the Nasdaq Composite eased 7.23 points (0.03%) to 21,122.45. Despite the broader market softness, Microsoft briefly achieved a significant milestone by crossing the $4 trillion market capitalisation mark after reporting strong earnings, becoming only the second company, following Nvidia, to reach this valuation.

Market Recap: July Ends in Red as Expiry and Tariff Pressures Weigh

Indian markets closed in the red on Thursday, July 31, unable to sustain midday gains. The decline came as traders reacted to U.S. tariff announcements and monthly derivatives expiry.

• The BSE Sensex fell 296.28 points (0.36%) to 81,185.58
• The NSE Nifty 50 dropped 86.70 points (0.35%) to 24,768.35

Both indices registered a near 3% decline for July. Broader markets underperformed, with the BSE Midcap and Smallcap indices down 0.7% each.

Sector and Stock Performance

• Top gainers on Nifty: HUL, Jio Financial, Eternal, JSW Steel, ITC
• Top losers: Adani Enterprises, Dr Reddy’s Labs, Adani Ports, Tata Steel, Sun Pharma

Sectorally, FMCG stood out with a 1.4% gain, while IT, metals, oil & gas, PSU banks, pharma, realty, and telecom sectors slipped between 0.5% and 1.8%.

FII/DII Activity on July 31

Foreign investors continued their significant selling trend on Thursday, offloading Indian equities worth ₹5,588.91 crore on a net basis. Their total buy value stood at ₹16,819.69 crore, against a sale value of ₹22,408.60 crore. In contrast, domestic institutional investors (DIIs) remained strong buyers in the market, recording a net inflow of ₹6,372.71 crore. DIIs’ total buy value was ₹17,465.71 crore, while their sale value amounted to ₹11,093.00 crore.

Insights For Investors

• Muted Opening Expected: GIFT Nifty suggests a mildly positive open despite global headwinds, indicating limited optimism amid caution.
• Global Weakness May Drag Sentiment: US tariffs and a sharp drop in Asian markets (e.g., Kospi -2.7%) may weigh on the broader market mood.
• FII Selling Continues: Heavy net outflows of ₹5,589 crore by FIIs raise concerns over sustained foreign pressure; however, DIIs’ strong support of ₹6,373 crore offers some cushion.
• FMCG Outperforms in Uncertain Times: Sectors like FMCG (up 1.4%) may offer relative safety as defensive plays during global volatility.
• Monthly Trend Weakens: A near 3% monthly drop in headline indices highlights growing investor nervousness, especially around global trade and monetary policy risks.
• Focus Ahead: Investors should watch for US jobs data, Fed commentary, and evolving geopolitical risks; risk-averse positioning in quality large caps and domestic consumption themes is advisable.

What’s Ahead For Today

Markets are likely to open on a cautious note despite GIFT Nifty’s mild gains, as global sentiment remains fragile due to US tariff shocks and geopolitical tensions. Investors will closely monitor the release of US non-farm payroll data, which could influence the Fed’s future interest rate stance. Sector rotation toward defensives like FMCG may continue. Volatility could persist due to lingering FII outflows and earnings season developments. Stock-specific action is expected in FMCG, banking, and IT names.

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