Nifty set for positive start after 2-day slide
GIFT Nifty:
GIFT Nifty September 2026 futures were up 38 points, indicating a positive opening for the Nifty 50.
Institutional Flows:
Foreign portfolio investors (FPIs) sold shares worth Rs 298.26 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,977.17 crore in the Indian equity market on 27 August 2026, according to provisional data.
FPIs bought shares worth Rs 17996.51 crore in August so far, through 27 August 2026. This follows net cash purchases of Rs 6,731.97 crore in July 2026, while they were net sellers of Rs 53,957.90 crore in June 2026.
Global Markets:
US stock futures were trading 102 points higher on Friday, signalling a positive start for Wall Street.
Asian stocks were trading higher on Friday, tracking the overnight gains on Wall Street, supported by strength in technology and IT services stocks.
Meanwhile, inflation in Tokyo, a leading indicator of nationwide price trends, remained close to the Bank of Japan's 2% target in August. Core consumer prices, which exclude volatile fresh food prices, rose 1.8% year-on-year, up slightly from 1.7% in July and broadly in line with expectations. A measure excluding both fresh food and fuel was around 2%, keeping attention on the Bank of Japan's monetary policy outlook.
All three major US indices closed higher on Thursday, led by a sharp rally in technology stocks following Nvidia's results and upbeat revenue outlook. The Dow Jones Industrial Average rose 0.20% to 53,569.00, while the S&P 500 gained 0.72% to 7,730.99 and the Nasdaq Composite advanced 1.57% to 26,541.00. Nvidia surged 8.7% after its strong results and forecast reinforced expectations of sustained demand for AI infrastructure. Salesforce jumped 22.6%, while CrowdStrike gained 20.5%, adding to the technology-led rally.
US initial jobless claims fell by 4,000 to 203,000 in the week ended August 22, compared with economists' expectations of 208,000, signalling continued resilience in the labour market. The data could reinforce the case for the Federal Reserve to remain cautious on rate cuts, particularly as inflation remains above its 2% target.
Separately, the US goods trade deficit widened sharply to $118.8 billion in July from the previous month, the widest gap since March 2025. Exports fell 2.9%, while imports rose 3.7%, with strong imports of capital goods linked to artificial intelligence investment contributing to the increase. The wider trade deficit could weigh on third-quarter economic growth.
Crude oil prices rose on Thursday after the media reported that the Trump administration was not interested in returning to the terms of a June memorandum of understanding with Iran, raising doubts over efforts to ease supply disruptions around the Strait of Hormuz. Brent crude settled 2.1% higher at $89.70 a barrel. Oil prices, however, eased in early Asian trading on Friday.
Attention now shifts to Warsh, who is set to deliver his first major address as Federal Reserve chair at the annual Kansas City Fed economic symposium in Jackson Hole, Wyoming. Investors will closely parse his comments for clues on the Fed's approach to inflation and interest rates, particularly as inflation remains above the central bank's 2% target and longer-term Treasury yields remain elevated.
Domestic Market:
Key benchmark indices extended their losses for the second consecutive session on Thursday, with the Nifty closing below the crucial 24,100 mark as selling in heavyweight stocks dragged the benchmarks lower. Domestic sentiment was weighed down by profit booking, monthly Sensex expiry and concerns around elevated US inflation and geopolitical tensions. Oil prices eased on hopes of progress in talks that could reduce supply disruptions around the Strait of Hormuz, offering some relief, while foreign and domestic institutional investors remained net buyers on August 26. Sectorally, gains in consumer durables and pharma were offset by losses in metals and PSU banks.
The S&P BSE Sensex declined 539.35 points or 0.70% to 76,933.59. The Nifty 50 index lost 116.90 points or 0.48% to 24,090.85. In two sessions, the Sensex and Nifty are down 0.93% and 1%, respectively.
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