Shares may open higher, negative Asian cues may limit gains

GIFT Nifty:

The GIFT Nifty December futures contract is currently up 18 points, indicating a mildly positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 2,335.32 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 732.20 crore in the Indian equity market on 13 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 14435.71 crore (so far) in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.

Global Markets:

Most Asian stocks declined Monday ahead of a swath of Chinese data and following a vow from the nations regulators to stabilize markets. Investors readied themselves for the final full week of trading this year with a series of central bank meetings including the Fed, Bank of Japan and Bank of England.

 

South Koreas shares and the won rose after President Yoon Suk Yeol was impeached on the weekend.

Meanwhile, the au Jibun Bank Japan manufacturing PMI read 49.5 in the first two weeks of December, compared to expectations of 49.2. The reading improved from 49.0 seen in the prior month.

The au Jibun Bank Japan Services PMI rose to 51.4 in December from 50.5 in the prior month, pushing further into expansion territory.

A reading below 50 indicates contraction, with the manufacturing PMI now shrinking for a sixth straight month.

U.S. stocks witnessed a subdued session on Friday as recent economic data showed inflation remaining sticky in November- a trend that could limit the Feds plans to lower interest rates.

The Fed is widely expected to cut interest rates by 25 basis points at the conclusion of a two-day meeting on Wednesday, after the central bank kicked off an easing cycle earlier in the year. The move will bring rates down by a total of 100 bps in 2024.

The Dow Jones Industrial Average fell 86.06 points, or 0.20%, to 43,828.06, the S&P 500 lost 0.16 point, or 0.00%, to 6,051.09 and the Nasdaq Composite gained 23.88 points, or 0.12%, to 19,926.72.

Domestic Market:

Domestic equity indices concluded a volatile trading session on a strong note on Friday, driven by a recovery in key sectors. The Nifty 50 index opened lower, hitting a day's low of 24,180.80 during the mid-morning session. However, it staged a significant recovery and closed above the 24,750 mark. FMCG and consumer durables stocks emerged as top performers for the day. The S&P BSE Sensex advanced 843.16 points or 1.04% to 82,133.12. The Nifty 50 index gained 219.60 points or 0.89% to 24,768.30.

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