Domestic equities opened on a strong note on Wednesday but profit booking at higher levels ensured both the indices lost over 1%.

“Overall, we remain positive on the market and expect recovery after a pause supported by global macros along with interest rates peaking out and healthy domestic macros,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.

Here’s breaking down the pre-market actions.

STATE OF THE MARKETS GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 77 points, or 0.36 percent, at 21,140, signaling that Dalal Street was headed for a negative start on Thursday.

• Tech View: We believe that the Nifty could play down towards the next major support at 21026-20769 in the coming sessions. Any pullback rallies could find resistance at 21325, said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 4.2% to settle at 14.45 levels.

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US stocks down

US stocks closed lower on Wednesday after an abrupt mid-afternoon nosedive ended Wall Street’s impressive rally, which had been driven by falling interest rates and the Federal Reserve’s dovish turn.

• Dow down 1.27%,
• S&P dips 1.47%,
• Nasdaq falls 1.50%

Asian shares decline

Shares in Asia were primed for declines Thursday after a global stock market rally stalled, even as the bond market edged higher on forecasts of lower interest rates.

• S&P 500 futures rose 0.1% as of 8:22 a.m. Tokyo time
• Nikkei 225 futures fell 1.7%
• Hang Seng futures fell 0.8%
• Australia’s S&P/ASX 200 fell 0.6%

Dollar steadies

The dollar found footing on Thursday as a sudden end to a strong rally for U.S. stocks had investors looking for safety and as an unexpected fall in British inflation hit the pound.

FII/DII action

Foreign portfolio investors were net sellers at Rs 1,322 crore on Wednesday. DIIs bought shares worth Rs 4754 crore.

Rupee

The rupee ended flat at 83.18 against the US dollar on Wednesday amid massive selling in equity markets as concerns over oil supplies through the Red Sea route dented investor sentiment.

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