Before the Market Opens on Jan 8: GIFT Nifty Signals Flat Start & Key Trends to Watch

Wall Street’s Decline, Asian Market Movements, Oil Price Surge, and Foreign Investor Activity—Here’s Everything You Need to Know

Pre-Market Update at 8:30 AM

Wall Street closed lower on Tuesday as strong economic data sparked concerns about a potential inflation rebound, which could prompt the Federal Reserve to slow its pace of monetary policy easing. The Dow Jones Industrial Average fell 178.20 points (0.42 per cent) to 42,528.36, the S&P 500 lost 66.35 points (1.11 per cent) to 5,909.03, and the Nasdaq Composite dropped 375.30 points (1.89 per cent) to 19,489.68.

Asian markets presented a mixed trend, with the Nikkei declining 0.5 per cent, while the Kospi gained 1 per cent. Regional stocks mirrored Wall Street's losses, driven by a sharp selloff in Treasuries amid expectations that the Federal Reserve may hold off on rate cuts until after July due to inflation risks.

GIFT Nifty indicates a flat start for the Indian market, with a modest rise of 10 points or 0.04 per cent. Nifty futures were trading around the 23,768.50 level.

On January 7, Indian equity indices bounced back from their previous session's losses, closing higher after a volatile trading session. Broad-based buying across sectors, excluding IT, supported the recovery. The Sensex added 234.12 points (0.30 per cent) to close at 78,199.11, while the Nifty gained 91.85 points (0.39 per cent) to end at 23,707.90.

The dollar strengthened on Wednesday, while the yen approached levels that previously triggered intervention. Strong U.S. economic data pushed yields higher, dampening expectations of near-term Federal Reserve rate cuts.

Oil prices edged higher on Wednesday, supported by tighter supplies from Russia and OPEC nations, as well as a surprising increase in U.S. job openings, signaling robust economic activity and rising oil demand. Brent crude rose 32 cents (0.42 per cent) to USD 77.37 per barrel as of 01:35 GMT, while U.S. West Texas Intermediate crude climbed 42 cents (0.57 per cent) to USD 74.67 per barrel.

Foreign institutional investors (FIIs) were net sellers on January 7, offloading equities worth Rs 1,491 crore. Meanwhile, domestic institutional investors (DIIs) remained net buyers, investing Rs 1,615 crore and maintaining their trend of robust inflows.

Hindustan Copper, Manappuram Finance, and RBL Bank are under F&O trading bans today.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.