GIFT Nifty points to lower opening

GIFT Nifty:

The GIFT Nifty September futures contract is down 26.50 points, suggesting a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,634.98 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 754.09 crore in the Indian equity market on 16 September 2024, provisional data showed.

FPIs have bought shares worth over Rs 15995.15 crore in September 2024 (so far). They sold shares worth 21,368.51 crore in August 2024.

Global Markets:

Asian stock markets saw a modest uptick on Tuesday, buoyed by anticipation of an interest rate cut by the Federal Reserve. However, Japanese markets faced headwinds from a stronger yen ahead of a Bank of Japan meeting.

 

Regional markets were influenced by a mixed performance on Wall Street, where technology stocks pulled down the Nasdaq Composite. Conversely, the Dow Jones Industrial Average reached a new high, driven by optimism about lower interest rates.

Trading volumes were subdued due to market holidays in China and South Korea. Sentiment towards China was dampened by concerns about a potential escalation in trade tensions with the West.

The Fed is set to meet Tuesday and Wednesday and is widely anticipated to lower rates for the first time since it began its hiking cycle in March 2022. Markets are pricing in at least 100 basis points of cuts this year.

In the United States, the S&P 500 gained 0.13%, while the Dow Jones Industrial Average rose 0.55%, notching a record close. The tech-heavy Nasdaq Composite declined by 0.52%.

Apple shares fell by 2.8% following analyst reports suggesting weaker demand for iPhone 16 Pro models compared to the previous year. Chip stocks, such as Nvidia, which led the market rebound last week, also faced selling pressure as investors took profits.

Domestic Market:

The domestic equity indices concluded Monday's trading session with modest gains, buoyed by anticipation of a potential interest rate cut by the US Federal Reserve. The benchmark Nifty 50 index settled above the 25,350 mark, having touched a low of 25,336.20 during the afternoon session. Several sectors, including media, metals, and realty, witnessed strong buying interest. Conversely, FMCG, IT, and pharma stocks faced selling pressure.

Investor sentiment remains optimistic as the US Federal Reserve's Federal Open Market Committee (FOMC) meeting is scheduled for September 17-18. A significant rate reduction could trigger a surge in foreign investment, potentially driving a substantial upward movement in Indian markets in the coming period.

The S&P BSE Sensex rose 97.84 points or 0.12% to 82,988.78, its record closing high. The Nifty 50 index added 27.25 points or 0.11% to 25,383.75.

Powered by Capital Market - Live News