GIFT Nifty:
Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could slide 40 points at the opening bell.
On the macro front, India's gross domestic product (GDP) grew by 7.8% in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1% in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office.
Output of eight key infrastructure sectors, known as the core sector, marginally slowed to 8% in July from 8.3% in June. This is due to a low base effect and positive growth in all the eight sectors during the month. In July last year, the core sector had grown by 4.8%. The print for June 2023 was also revised slightly upwards to 8.3% from 8.2% estimated earlier.
Global markets:
Overseas, Asian stocks are trading mixed after a muted session on Wall Street as traders await Friday's jobs reading to gauge the outlook for Federal Reserve policy. The official manufacturing purchasing managers index came in at 49.7, representing a softer rate of contraction compared to July's figure of 49.3.
Meanwhile, China's central bank announced first reserve ratio cut in 2023 to counter Yuan depreciation. The People's Bank of China (PBOC) said it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 4% from 6% beginning September 15, as per reports.
US stocks ended mixed on Thursday after inflation and weekly jobless data. Investors are keenly awaiting employment data due on Friday for clues on the Fed's monetary policy outlook.
Domestic markets:
Back home, the domestic equity indices settled lower on Thursday, snapping a three-day gaining streak. Trading was volatile on the monthly F&O expiry day. The barometer index, the S&P BSE Sensex slipped 255.84 points or 0.39% to 64,831.41. The Nifty 50 index lost 93.65 points or 0.48% to 19,253.80.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,973.10 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,382.76 crore in the Indian equity market on 31 August, provisional data showed.
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