Bull vs Bear: The Contest has been interesting as ever, with bears pulling the markets down towards the last week.
The Indian share market during the coming week will be poised for careful trading with August 12 being a critical date, given the imminent release of inflation data for both India and the USA. Both these important macroeconomic figures will potentially be hugely market-moving and direction-setting. The coming week would be a reflection of the inflation data of both the countries, the tariff-steering amid FII selling, falling Indian rupee against USD and other factors. Market would be open only for four days, 15th August being a national holiday on the account of Independence Day.
The GIFT Nifty closed somewhat lower at about 24,426 points on August 8, 2025, registering subdued domestic market mood and hopes for a defensive week to come. Indian equities were sold by Foreign Institutional Investors (FIIs), whereas Domestic Institutional Investors (DIIs) continued to be firm buyers, perpetuating the pattern of DIIs taking care of market stability in the face of FII selling.
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Across the world, U.S. markets closed mixed on the same day. The Dow Jones Industrial Average climbed by 206.97 points (0.5%) to close at 44,175.61, whereas the technology-heavy Nasdaq jumped 207.32 points (1%) to close at a record 21,450.02. The broader U.S. market reflected optimism in spite of sectoral weakness and tariff issues pressuring certain stocks. These divergent market movements reflect the uncertainty that investors are grappling with.
The importance of August 12 is mainly due to the release of inflation data in the U.S. and India, which will provide new information regarding price pressure and economic well-being in the two large economies that set the tone for world markets. Investors will keenly observe these inflation readings for hints on future central bank policy actions, particularly from the Federal Reserve and Reserve Bank of India, which can influence market liquidity and risk-taking appetite of investors directly.
Technically, the Indian Nifty has taken critical support in the range of 24,400-24,500, and the close of the GIFT Nifty on August 8 has reinforced that. If this zone fails to hold along with disappointing inflation numbers, then it could speed up negative pressure on the overall market. On the contrary, if inflation numbers meet or exceed expectations, then relief and stabilization of markets are possible.
The dynamics of ongoing FII selling and persistent DII buying continue to be a hallmark of the Indian market scenario. While FIIs' risk aversion brings in volatility, DIIs provide stability by ensuring liquidity and checking steep falls.
In short, the upcoming week must be approached with caution, based on the importance of August 12's inflation data releases of the U.S. and India. Market players must observe the technical support levels indicated by the recent closing of the GIFT Nifty and be aware of changes in trading patterns brought about by these core economic indicators and continued institutional flows. This synergy of local and international drivers will prove important in influencing market trends and investment moves in the future.
