Shares may start lower amid mixed global cues

GIFT Nifty:

The GIFT Nifty December futures contract is currently down 18 points, indicating a negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 278.70 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 234.25 crore in the Indian equity market on 13 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 17293.61 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:

Asian shares were mixed on Tuesday as investors awaited a crucial week for central bank policy decisions. The U.S. Federal Reserve is widely expected to cut rates on Wednesday, while the Bank of Japan is likely to maintain its current stance.

 

This week sees policy meetings from central banks in the United States, Japan, UK, Sweden, Norway, Indonesia, and Thailand. The Bank of England, Norges Bank, and Bank of Thailand are anticipated to hold rates steady, while the Riksbank might opt for a rate cut. Bank Indonesia is expected to raise rates to support the weakening rupiah currency.

Data released on Monday revealed a steeper-than-expected slowdown in China's consumer spending during November, negatively impacting stocks. Retail sales rose only 3% year-on-year, which is the weakest growth in three months and significantly lower than October's 4.8% increase.

In the US, major US technology stocks continued their upward momentum on Monday, propelling the Nasdaq Composite to record highs. However, the Dow Jones Industrial Average lagged behind, reflecting ongoing investor uncertainty about economic policies under the new administration.

The S&P 500 rose 0.38% to 6,074.10 points, while the NASDAQ Composite surged 1.24% to a record high of 20,204.58 points. The Dow Jones Industrial Average fell 0.25% to 43,717.48 points.

The chip sector experienced a rally, mirroring Broadcom Inc.'s continued gains fueled by strong earnings and guidance related to artificial intelligence. The prospect of lower interest rates in the near future also boosted other prominent tech companies like Apple, Amazon, and Alphabet.

Domestic Market:

Domestic equity indices concluded Monday's trading session with modest declines. The Nifty 50 index closed below the 24,700 mark, reflecting a cautious sentiment among investors. While the realty sector rallied, metal and IT stocks experienced downward pressure. Global markets were muted as investors braced for potential rate decisions by the Federal Reserve and other central banks this week. The S&P BSE Sensex dropped 384.55 points or 0.47% to 81,748.57. The Nifty 50 index fell 100.05 points or 0.40% to 24,668.25.

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