Negative global cues may put pressure on shares, Swiggy debut in focus

GIFT Nifty:

The GIFT Nifty November futures contract is trading 10 points lower, suggesting a negative opening for the Nifty 50.

Shares of Swiggy will debut on stock exchanges today. Swiggy's IPO was subscribed 3.59 times. It was open for bidding between 6 to 8 November 2024. The price band of the IPO was set at Rs 371 to 390 per share.

Economy:

Indias retail inflation, based on the Consumer Price Index (CPI), in October 2024 surged to a 14-month high of 6.21%, according to the latest official data released on Tuesday. Indias retail inflation had stood at a nine-month high of 5.49% in September 2024. It was at 4.87% in October 2023.

Indias industrial production grew by 3.1% in September, according to official data released on Tuesday. In the previous month of August, the factory output, based on the Index of Industrial Production (IIP), was in the negative territory at (-) 0.1%. However, the IIP growth had stood at 6.4% in September 2023.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,024.31 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,854.46 crore in the Indian equity market on 12 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 26819.55 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 stocks declined on Wednesday, mirroring losses on Wall Street. The post-election rally seems to be losing steam, and investors are growing cautious ahead of crucial U.S. inflation data.

China's recent fiscal measures failed to significantly boost regional markets, while uncertainty surrounding global trade relations continues to dampen sentiment.

Wall Street benchmarks retreated from record highs on Tuesday after a strong post-election run. At the close in NYSE, the Dow Jones Industrial Average lost 0.86%, while the S&P 500 index fell 0.29%, and the NASDAQ Composite index declined 0.09%.

Key Federal Reserve officials' hawkish comments, particularly Minneapolis Fed President Neel Kashkari's warning about potential rate hikes, added to the negative sentiment.

Investors are now focused on the upcoming U.S. consumer price index (CPI) data due later on Wednesday, which is expected to reveal persistent inflation in October.

Domestic Market:

The domestic equity benchmarks continued their downward spiral on Tuesday, marking the fourth consecutive day of losses. The Nifty 50 index decisively breached the 23,900 level, closing near its intraday low. Sectors like auto, FMCG, and metals bore the brunt of the sell-off. Increased profit-booking and mixed global signals further exacerbated the decline. The S&P BSE Sensex slipped 820.97 points or 1.03% to 78,675.18. The Nifty 50 index lost 257.85 points or 1.07% to 23,883.45. The 50-unit index has fallen 2.45% in four sessions.

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