Before Market Opens: 9 things to know at 9 am on July 29, 2022

US stocks on Thursday rallied for a second day, with all three major indices ending up more than 1 percent as data showing a second consecutive quarterly contraction in the economy fueled investor speculation the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared. The Dow Jones Industrial Average rose 332.04 points, or 1.03 percent, to 32,529.63 the S&P 500 gained 48.82 points, or 1.21 percent, to 4,072.43 and the Nasdaq Composite added 130.17 points, or 1.08 percent, to 12,162.59. The Nasdaq registered its biggest two-day percentage gain since May 27.

Shares in Asia-Pacific traded mixed Friday after a rally on Wall Street. That followed a negative US gross domestic product report, which suggests the Fed would be less aggressive in its tightening cycle. In Japan, the Nikkei 225 gained 0.32 percent, while the Topix index was about flat. South Korea’s Kospi rose 0.85 percent. The S&P/ASX 200 in Australia was up 0.78 percent. MSCI’s broadest index of Asia-Pacific shares outside of Japan gained 0.28 percent.

The US economy shrank from April through June for a second straight quarter, contracting at a 0.9 percent annual pace and raising fears that the nation may be approaching a recession. The decline that the Commerce Department reported Thursday in the gross domestic product — the broadest gauge of the economy — followed a 1.6 percent annual drop from January through March. Consecutive quarters of falling GDP constitute one informal, though not definitive, indicator of a recession.

At 8:20 am, the SGX Nifty was trading 199 points or 1.1 percent higher at 17,146, indicating a gap up opening for the Indian markets.

Domestic equities logged healthy gains on July 28, mirroring positive global sentiment, after the US Fed raised rates on an expected line by 75 bps and sounded less hawkish which eased the bond market and capped the gains of the dollar. Sensex closed 1,041 points, or 1.87%, higher at 56,857.79 with 25 stocks in the green and five stocks in the red. Nifty50 ended 288 points, or 1.73%, higher at 16,929.60.

Oil prices gained about $1 in early trade on Friday, lifted by supply concerns and a weaker US dollar as attention turns to what OPEC and allies including Russia agree at a meeting next week marking the end of their 2020 output reduction pact. US West Texas Intermediate (WTI) crude futures for September delivery rose $1.09, or 1.1 percent, to $97.51 a barrel by 0041 GMT, reversing losses from the previous session when sentiment was hit by fears of a recession in the US. Brent crude futures for September settlement, due to expire on Friday, rose 86 cents, or 0.8 percent, to $108.00 a barrel. The more active October contract climbed 87 cents, or 0.9 percent, to $102.70.

The rupee rose 15 paise to end at 79.76 in the previous session amid strong gains in the domestic equity market and FPI inflow. As per NSE data, FPIs remained net buyers to the tune of ₹1637.69 in the Indian financial market on July 28.

Gold prices were on the course of a fourth consecutive monthly drop in the international market as the dollar's rise and hawkish central banks dented the bullion's demand.

Foreign institutional investors (FIIs) have net bought shares worth ₹1,637.69 crore, while domestic institutional investors (DIIs) net bought shares worth ₹600.29 crore on July 28, as per provisional data available on the NSE.