GIFT Nifty:
Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could see a flat opening.
India's annual inflation rate based on the Consumer Price Index (CPI) fell to 4.75% for the month of May 2024, according to government data. This is lower compared to 4.83% in April 2024 and 4.31% in May 2023. Inflation in the food basket remained high at 8.69% in May 2024, showing a slight decrease from 8.70% in April 2024.
India's industrial production showed strong growth of 5% in April 2024 compared to 4.6% in April 2023. The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of April 2024 over April 2023 are 6.7%, 3.9% and 10.2% respectively.
Foreign portfolio investors (FPIs) bought shares worth Rs 426.63 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 233.75 crore in the Indian equity market on 12 June 2024, provisional data showed.
FPIs have sold shares worth over Rs 10,830.45 crore in June 2024 (so far). They offloaded shares worth 42214.28 crore in May 2024.
Global Markets:
Asian stocks followed Wall Street higher after the Federal Reserve's cautious stance on interest rates didn't deter investors' expectations for cuts.
The Bank of Japan's two-day policy meeting starts today, with a decision expected on Friday. While holding rates is likely, a reduction in bond purchases is a possibility.
U.S. stocks rose on Wednesday after inflation data showed a slowdown. The core consumer price index reached its lowest level in over three years, with year-over-year prices rising 3.3% for essentials and other goods.
The Federal Reserve maintained interest rates after its policy meeting, revising its forecast to one rate cut this year and four in 2025. This shift from the previous projection of three cuts in 2024 reflects a more cautious outlook.
The S&P 500 extended its record high by 0.9%, while the Nasdaq composite climbed 1.5%, further surpassing its own record. The Dow Jones Industrial Average saw a modest decline of 0.1%.
Domestic Markets:
Domestic stocks rose on Wednesday, led by gains in banks and financial stocks. The Nifty 50 settled above the 23,300 mark. All eyes now turn to US inflation data and the Federal Reserve meeting outcome, both slated today, which could steer the direction of global markets. The S&P BSE Sensex rose 149.98 points or 0.20% to 76,606.57. The Nifty 50 index climbed 58.10 points or 0.25% to 23,322.95.
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