Positive opening on cards amid bullish Asian cues

GIFT Nifty:

The GIFT Nifty October futures contract is up 43 points, suggesting a positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 973.94 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,778.99 crore in the Indian equity market on 25 September 2024, provisional data showed.

FPIs have bought shares worth over Rs 25794.39 crore in September 2024 (so far). They sold shares worth 21,368.51 crore in August 2024.

Global Markets:

Dow Jones Futures were up 69 points, indicating a positive opening in the US stock market today.

Asian markets experienced an uptick on Thursday, driven by continued optimism surrounding China's recent stimulus measures and a robust rally in technology stocks, particularly semiconductor manufacturers. The latter was fueled by strong earnings from U.S. chipmaker Micron.

Chinese markets have been on a roll this week following Beijing's announcement of a series of stimulus measures, including a reduction in bank reserve requirements and lower mortgage rates. These measures have sparked a wave of bargain buying, as Chinese markets had been lagging behind global peers for some time due to concerns about a slowing economy.

U.S. stocks experienced a pullback on Wednesday, with the three major indices closing mixed as investors weighed the health of the economy and the likelihood of further interest rate cuts. The Dow Jones Industrial Average declined by around 0.7%, while the S&P 500 fell 0.19% and Nasdaq Composite (+0.04%) saw more modest gains.

On the economic data front, new home sales in the United States decreased in August compared to the previous month, primarily due to high mortgage rates and elevated prices deterring potential buyers. However, mortgage applications rose to their highest level since 2022, driven by homeowners seeking to refinance their loans as interest rates decline.

This week's market focus is on Federal Reserve Chair Jerome Powell's upcoming speech and the release of the PCE price index, the Fed's preferred inflation gauge.

Domestic Market:

The domestic equity benchmarks concluded a volatile trading session on a positive note on Wednesday, with the benchmark Nifty index closing above the 26,000 level. Despite a weak start, the indices managed to gain momentum throughout the day, reaching a new all-time high. Key sectors that drove the market's uptick included media, realty, and metals. However, PSU banks and consumer durables stocks faced downward pressure. The positive sentiment was bolstered by the Nifty's sustained position above 25,900, indicating strong support from aggressive put writing. Technically, the Nifty's momentum indicator remains positive, suggesting a continuation of the upward trend.

The S&P BSE Sensex rose 255.83 points or 0.30% to 85,169.87. The Nifty 50 index added 63.75 points or 0.25% to 26,004.15. Both the indices attained record closing high levels. The Sensex and Nifty clocked a record high of 85,247.42 and 26,032.80, respectively, in late trade.

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