Asian weakness may weigh on domestic shares

GIFT Nifty:

The GIFT Nifty November futures contract is trading 2 points higher, suggesting a flat opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,404.04 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,748.44 crore in the Indian equity market on 8 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 21961.46 crore (so far) in the secondary market during November 2024. This follows their sale of shares worth Rs 1,13,858.81 crore in October 2024.

Global Markets:

Asian markets declined following China's announcement of a 10 trillion yuan debt relief program, which was perceived by some as insufficient to stimulate the economy. Concerns over deflationary pressures and a slowdown in foreign direct investment also weighed on sentiment.

Meanwhile, Bitcoin surged past $81,000, driven by the incoming president's support for digital assets and the election of pro-crypto lawmakers. Oil prices declined further, extending losses from the previous session, as weak demand from China continued to dampen market sentiment.

In the US, the S&P 500 reached a new record high, driven by optimism surrounding the potential economic benefits of a second term for the incumbent US president. The S&P 500 rose 0.38% to 5,995.54 points on Friday. The Dow Jones Industrial Average rose 0.59% to 43,988.99 points, while the NASDAQ Composite rose 0.09% to 19,286.78 points.

Tesla's stock surged over 8%, boosting its market valuation above $1 trillion, while Airbnb shares fell more than 8% following a mixed quarterly earnings report.

The University of Michigan's Consumer Sentiment reading climbed to 73 in November, up from 70.5 last month, reflecting increased optimism about the economy.

Domestic Market:

The domestic equity benchmarks concluded the trading session on a negative note on Friday, despite a positive global sentiment triggered by a 25 basis point rate cut by the US Federal Reserve. The Nifty 50 closed below the 24,150 mark. PSU banks, realty, and media stocks witnessed significant declines. IT, consumer durables, and FMCG sectors bucked the negative trend. The S&P BSE Sensex declined 55.47 points or 0.07% to 79,486.32. The Nifty 50 index lost 51.15 points or 0.21% to 24,148.20.

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