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On Tuesday, Indian markets closed lower, with the Nifty dipping below 24,000 for the first time in six weeks. Despite gains in Asian markets, local equities failed to sustain growth due to concerns over US economic conditions and geopolitical issues. Foreign investors continued to sell, weakening the rupee further.

Oil prices decreased in early Asian trading following a short-lived rebound due to unexpected increases in U.S. crude and gasoline inventories. Brent crude futures dropped to $76.27 a barrel, and WTI crude declined to $72.95 a barrel. Tensions in the Middle East and lower production at Libya’s Sharara oilfield have added to global supply concerns.

Ola Electric Mobility’s ₹6,146 crore IPO, the biggest so far in 2024, was oversubscribed 4.27 times. The offering included ₹5,500 crore in new shares and ₹645.6 crore from existing investors. Funds will support plant expansion, debt repayment, and R&D. Listing is expected on August 9.

JSW Steel sought ₹2,500 crore through SBI and ICICI Bank for capital expenditure. The company aimed to issue non-convertible debentures at an 8.5% interest rate. JSW intended to invest ₹20,000 crore in FY25 to enhance production capacity, targeting 50 million tonnes by FY31. Talks were reportedly in advanced stages.

Sebi proposed alterations to the regulatory framework for investment advisers and research analysts to reduce registration requirements and compliance costs. It also suggested relaxing eligibility criteria, including qualifications, and removing experience and net worth requirements. Sebi recommended maintaining a deposit for arbitration and conciliation purposes, aiming to address concerns about business continuity in the profession.

SEBI recommended stricter disclosure norms for offshore derivative instruments and foreign portfolio investors with segregated portfolios. The objective was to uphold concentration norms, requiring detailed disclosures for FPIs with significant assets in a single corporate group or large AUMs. In July 2024, 35 FPIs were identified with numerous segregated portfolios.

The S&P 500 and Nasdaq rose by 1% as investors returned following a major sell-off. Strong comments from Federal Reserve officials alleviated recession concerns. Traders expect rate cuts in the next Fed meeting. Nvidia boosted indices, while Uber and Caterpillar reported positive earnings. The Nasdaq is up 9% in 2024.

The dollar stabilized, causing the yen to move back from its seven-month high as markets calmed after a tumultuous start to the week driven by recession fears. The yen fell 1% due to interventions and a Bank of Japan policy shift. Market panic was intensified by a weak U.S. job report and dismal tech earnings, leading to global asset sell-offs.

​The Federal Reserve never acts in a very stable way on either side. They either overshoot on the upside or they overshoot on the downside and in both the cases they are often too late.

DP Singh of SBI MF discussed the strategic opportunity presented by the recent market downturn for creating a unique, innovative portfolio. He expressed confidence in India’s market resilience amid global volatility, highlighting a meticulously planned new fund that targets companies excelling in new processes and innovations, with a three to four-month development timeline.