Indian Shares Set To Open Lower On Caution Ahead Of Key Macro Data

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Indian equities are poised for a marginal dip in their opening session on Tuesday, reflecting a cautious sentiment driven by risk aversion ahead of crucial macroeconomic data releases both from the United States and India. The looming announcements of key data, including the quarterly gross domestic product (GDP) figures for India and significant economic indicators from the U.S., have created an atmosphere of anticipation and prudence among investors.

At 8:03 a.m. IST, India’s GIFT Nifty on the NSE International Exchange was observed to be down by 0.12%, standing at 19,330.50 points.

During the previous trading session, the benchmark Nifty 50, represented by the .NSEI index, posted a minor upswing, largely propelled by financial sector gains. However, the market’s overall upward movement was capped by a 1% fall in Reliance Industries (RELI.NS) shares. This decline was attributed to selling pressure, which analysts believe emerged due to the lack of clear timelines concerning the impending initial public offerings (IPOs) of the telecom and retail arms of the conglomerate. The 46th annual general meeting (AGM) of the oil-to-telecom giant left investors wanting for more definitive information.

Asian markets continued to demonstrate positive momentum, largely attributed to China’s proactive measures aimed at bolstering its market and property sector. This upward trend across Asian markets set a promising tone for the day’s trading.

On the global front, Wall Street recorded gains in the previous trading session, with investors closely tracking pivotal economic data that could influence the Federal Reserve’s rate decision scheduled for September. Key economic indicators such as monthly jobs data and the personal consumption expenditure (PCE) price index have garnered significant attention from investors.

The Indian market is also awaiting the release of the country’s GDP data for the April-June quarter, which is scheduled to be disclosed after-market hours on Thursday. A recent Reuters poll indicates that India’s economic growth is expected to have accelerated to 7.7% in the June quarter, marking the fastest pace in a year. This projected growth is attributed to robust demand, notable expansion within the service sector, and increased government expenditure.

Investor focus remains on the ongoing probe by the market regulator into the Adani group’s activities, with the Supreme Court slated to address the matter on Tuesday. The outcome of this investigation could potentially impact the market sentiment.

Foreign institutional investors (FIIs) exhibited a net selling activity of shares worth 13.93 billion rupees ($168.60 million) during the previous trading session, while domestic institutional investors (DIIs) demonstrated a contrasting trend by purchasing shares worth 12.64 billion rupees, according to data from stock exchanges.

As the Indian market braces itself for a session influenced by domestic and global data, the cautious sentiment prevails, with investors keenly observing developments and ready to react to the forthcoming data releases that could potentially shape market trends in the days to come.

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