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Market Commentary - Pre-Session

GIFT Nifty signals flat start for equities; Australia clocks strong GDP growth in Q2
03-Sep-2025, 08:34

GIFT Nifty:

GIFT Nifty August 2025 futures were currently trading 15.50 points (or 0.06%) higher, suggesting that the Nifty 50 could start on a muted note today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,159.48 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,549.51 crore in the Indian equity market on 01 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 2,589.19 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asian market traded largely lower on Wednesday as investors weighed the impact of climbing global bond yields alongside fresh signals from ongoing trade negotiations and geopolitical tensions.

Chinese market was in focus following President Xi Jinping's speech at a military parade to commemorate the 80th anniversary of the end of World War II. The event was graced by 26 world leaders, including Russian President Vladimir Putin and North Korea's leader Kim Jong Un.

Meanwhile, Australia's second-quarter GDP grew 1.8% year over year, marking the fastest pace of growth since September 2023. The latest reading was higher than the 1.3% seen in the previous quarter.

Overnight stateside, all three key benchmarks ended the day lower.

The Dow Jones Industrial Average ended down 249.07 points, or 0.55% to close at 45,295.81. The broad-based S&P 500 dropped 0.69% to settle at 6,415.54, while the Nasdaq Composite slid 0.82% to close at 21,279.63.

Domestic Market:

Equity benchmarks ended in the red on Tuesday, snapping early gains as profit booking and the weekly expiry of derivatives contracts on the NSE pulled indices lower. Investors also remained cautious amid global uncertainty and ahead of the key Goods and Services Tax (GST) Council meeting scheduled for September 3 and 4.

The Nifty opened strong above the 24,650 mark and climbed to an intraday high of 24,756.10. However, selling pressure in the latter half of the session dragged it below the 24,600 level at close. Banks and financials were the biggest drags, while FMCG and metal counters lent some support to the market.

The National Stock Exchange of India (NSE) ushered in a structural shift to derivatives trading by changing the futures and options contract expiry cycle. Starting 1 September 2025, all expiries will take place on Tuesdays, marking the end of the long-standing Thursday expiry tradition that lasted for 25 years.

The S&P BSE Sensex declined 206.61 points or 0.26% to 80,157.88. The Nifty 50 index dropped 45.45 points or 0.18% to 24,579.60.

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