GIFT Nifty points to downward start

GIFT Nifty:

The GIFT Nifty November futures contract is down 39 points, suggesting a mildly negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,613.65 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,518.28 crore in the Indian equity market on 30 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 110205.86 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Asian stocks declined on Thursday as concerns over the rising costs of artificial intelligence weighed on chip-sector stocks, mirroring overnight losses by Wall Street peers. Meta Platforms, the parent company of Facebook, warned of escalating AI expenses. Investors are also awaiting earnings reports from tech giants Apple and Amazon later in the day.

 

The Japanese yen hovered near a three-month low against the dollar, pressured by political instability following the ruling coalition's poor performance in recent parliamentary elections. This uncertainty could delay the normalization of monetary policy in Japan.

The Bank of Japan is scheduled to announce its rate decision on Thursday, with no significant changes expected.

In the US, stocks rallied on Wednesday, with the tech-heavy Nasdaq Composite reaching a new record high, driven by strong earnings from Alphabet. The Dow Jones Industrial Average gained 0.51%, the S&P 500 rose 0.29%, and the Nasdaq Composite climbed 0.24%.

Economic data released on Wednesday showed that the US economy grew at an annual rate of 2.8% in the third quarter, supported by consumer spending and government expenditure. However, this was a slowdown from the second quarter's 3% pace. Additionally, US private payrolls surged by 233,000 jobs in October, exceeding expectations.

Market participants are cautiously looking ahead to a crucial week, which includes the release of US non-farm payrolls data on Friday, the presidential election next Tuesday, and a Federal Reserve policy decision next Thursday. Gold prices continued to climb, reaching a new record high.

Domestic Market:

The domestic equity benchmarks ended lower on Wednesday, snapping a two-day rally, as mixed global cues and concerns about domestic economic growth weighed on investor sentiment. The Nifty 50 index closed below the 24,350 mark, dragged down by losses in banks and consumer durables stocks. Media and FMCG stocks, however, bucked the trend and ended higher. The benchmark index traded in a narrow range throughout the session, failing to break above the 24,500 level.

The S&P BSE Sensex, declined 426.85 points or 0.53% to 79,942.18. The Nifty 50 index lost 126 points or 0.51% to 24,340.85.

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