Shares likely to start lower

GIFT Nifty:

The GIFT Nifty September futures contract is down 14 points, suggesting a negative start for the Nifty 50.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,755 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 230.90 crore in the Indian equity market on 11 September 2024, provisional data showed.

FPIs have bought shares worth over Rs 7570.31 crore in September 2024 (so far). They sold shares worth 21368.51 crore in August 2024.

Bajaj Housing Finance IPO reported record-high subscription, topping Rs 3 lakh crore, for the Rs 6,560-crore issue -- a first in India. The record subscription for Bajaj Housing Finance IPO came amid strong demand from institutional and non-institutional investors.

 

Global Markets:

Asian market experienced an uptick on Thursday, driven by a surge in technology stocks. Meanwhile, Japanese markets soared as a softer-than-expected producer price inflation reading undermined the Bank of Japan's hawkish stance.

The gains in Japanese stocks were fueled by the August producer price index (PPI) data, which came in at a lower-than-anticipated 2.5% year-over-year increase. This marked the slowest PPI growth since May, contrasting with the previous month's 3.0% rise.

Regional technology stocks followed their U.S. counterparts, buoyed by Nvidia CEO Jensen Huang's optimistic outlook on strong artificial intelligence demand. Chipmakers were particularly prominent among the gainers.

However, a stronger-than-expected consumer inflation reading tempered expectations for interest rate cuts. Markets are now positioning for a 25-basis-point rate cut by the Federal Reserve next week.

The annual core consumer price inflation rate in the United States, excluding volatile items like food and energy, stood at a three-year low of 3.2% in August 2024, matching July's figure.

U.S. stocks rebounded on Wednesday after a volatile trading session, as investors assessed the implications of the latest inflation data for Federal Reserve policy. Tech shares led the recovery from earlier lows. The S&P 500 gained 1.07%, the Dow Jones Industrial Average added 0.31%, and the Nasdaq Composite rose 2.17%.

The US Labor Department reported the consumer price index (CPI) rose 0.2% last month, in line with July. Core CPI, excluding volatile food and energy components, rose 0.3% on a monthly basis, exceeding expectations.

Domestic Market:

The domestic equity market took a significant hit on Wednesday, with the Nifty50 closing below 24,950. The early-afternoon high of 25,113 was short-lived as sectors like oil & gas, PSU banks, and metals faced selling pressure. Investors are closely watching upcoming inflation data from the US and India. While US inflation is anticipated to increase, Indian inflation is expected to remain steady. Additionally, the Bank of Japan's suggestion of a potential rate hike if inflation stays elevated added to the market's cautious tone. The S&P BSE Sensex slipped 398.13 points or 0.49% to 81,523.16. The Nifty 50 index declined 122.65 points or 0.49% to 24,918.45.

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