Recession in US Market, Indian Market’s Strong Start: Up 900 Points, Trading 1% Higher at 79,670, Nifty Also Up by 280 Points

Despite the largest declines in US markets in two years, the Indian stock market is witnessing a surge today, August 6th. The Sensex has risen by 1,000 points (1.15%), reaching a level of 79,670. The Nifty is also up by 280 points (1.19%), currently trading at 24,340.

The Nifty Auto, Metal, and Realty indices have jumped by more than 2%. The Banking, IT, and Media sectors have seen increases of over 1%. Out of the 50 Nifty stocks, 45 are advancing while 5 are declining. Tata Motors has seen the highest rise, increasing by 3%.

On Monday, the Sensex had dropped by 2,222 points (2.74%) to close at 78,759. Similarly, the Nifty had fallen by 662 points (2.68%) to settle at 24,055. The BSE Midcap Index had decreased by 1,718 points (3.60%) to close at 45,956, and the Smallcap Index was down by 2,297 points (4.21%).

Four Major Factors That Will Determine Market Movements

Reserve Bank Meeting:

The Reserve Bank of India’s (RBI) Monetary Policy Committee meeting starts today. RBI Governor Shaktikanta Das will announce the decisions made in the meeting on August 8, 2024. Experts expect the RBI to keep the interest rate unchanged at 6.5%.

Company Quarterly Results:

Over 900 companies are set to announce their first-quarter results this week. Companies such as Tata Power, TVS Motors, Bata, and Raymond are scheduled to release their April-June quarter results today. These results will influence market sentiment.

Global Market Trends:

On Monday, the American market saw the Dow Jones drop by 2.60% to close at 38,703, while the Nasdaq also fell by 3.43%, closing at 16,200. In the Asian markets today, Japan’s Nikkei is up by 10%, and the GIFT Nifty has increased by 0.81%.

Foreign and Domestic Investors:

On August 5, Foreign Institutional Investors (FIIs) sold shares worth ₹10,073.75 crore. During the same period, Domestic Institutional Investors (DIIs) bought shares worth ₹9,155.55 crore, indicating that foreign investors are still selling.

Largest Decline in US Markets in Nearly Two Years

On Monday, the US market saw the S&P 500 drop by 3%, marking its worst day since September 2022. This decline has pushed the index down 8.5% from its all-time high in July, though it remains up by 8.7% in 2024.

Tech company stocks were at the forefront of the market decline. Apple shares fell by 4.8%, while Meta and Nvidia dropped by 2.5% and 6.4%, respectively. The decline in the US markets is attributed to economic recession concerns.

Ajay Kedia’s Advice: Keep Defensive Stocks in Your Portfolio

Ajay Kedia, Director of Kedia Advisory, stated that the job growth rate in the US has been significantly slow, raising the likelihood of a recession. Additionally, tensions due to the conflict between Iran and Israel are contributing to market uncertainty. The Indian Rupee is also experiencing a decline.

According to Ajay Kedia, investors should currently include defensive stocks such as FMCG and Pharma shares in their portfolios. Due to domestic and global macroeconomic factors, the market is expected to see increased volatility in the near future.

Last Day for Ola’s IPO, Subscribed 1.12 Times So Far

Today is the last day for the IPO of Ola Electric Mobility. So far, the IPO has been subscribed 1.12 times. The company’s shares will be listed on the stock exchange on August 9.

Second Largest Decline of the Year in the Market on Monday, Sensex Down by 2.74%

On Monday, the stock market witnessed a drop of 2,222 points (2.74%), marking the second largest decline of the year 2024. Earlier, on June 4, the day of the Lok Sabha election results, the Sensex had plummeted by 4,389 points (5.74%) to close at 72,079.