Trading may be choppy on mixed Asian cues

GIFT Nifty:

The GIFT Nifty January 2025 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 3,362.18 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,716.28 crore in the Indian equity market on 8 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 11478.62 crore (so far) in the secondary market during January 2025. This follows their sale of shares worth Rs 2589.63 crore in December 2024.

Global Markets:

The Dow Jones index futures were down 47 points, signaling a positive opening for U.S. stocks today. investors grappled with the prospect of slower interest rate cuts in 2025 while also speculating over increased trade tariffs under President-elect Donald Trump.

 

Asian shares traded mixed on Thursday as Wall Street investors remained cautious ahead of Friday's crucial jobs report, which will provide further insights into the state of the US labor market. Key economic data in Asia today will include China's inflation reading.

US markets are closed today for a national day of mourning to honor the passing of former President Jimmy Carter.

Wall Street indexes moved in a tight range on Wednesday after marking a weak start to 2025.

The S&P 500 rose 0.1% to 5,917.30 points on Wednesday, while the NASDAQ Composite fell 0.1% to 19,475.93 points. The Dow Jones Industrial Average rose 0.3% to 42,635.20 points.

Technology stocks weighed on Wall Street sentiment as investors booked profits after a strong 2024 performance. Market participants are now keenly awaiting the start of the fourth-quarter earnings season next week, with major banks set to release their results.

The minutes of the Federal Reserve's December meeting revealed that policymakers are increasingly inclined towards a slower pace of interest rate cuts this year, citing concerns about persistent inflationary pressures.

The minutes reiterated the central bank's hawkish stance, confirming a reduction in the projected number of rate cuts for 2025 from four to two. Some Fed officials expressed concerns that protectionist policies implemented under the Trump administration could continue to fuel inflation and hinder economic growth. The minutes highlighted the potential impact of "changes in trade and immigration policy" on the inflation outlook, suggesting that the fight against inflation may be more prolonged than initially anticipated.

Domestic Market:

The key equity benchmarks concluded Wednesday's trading session with minor losses. The Nifty index closed below the 23,700 mark after reaching an intraday high of 23,751.85. Sectors like energy, IT, and FMCG witnessed buying interest. Conversely, consumer durables, healthcare, and pharma stocks corrected. Investor sentiment was dampened by a cautious approach ahead of the upcoming earnings season. Additionally, concerns over a potential slowdown in U.S. interest rate cuts also weighed on market sentiment. The S&P BSE Sensex shed 50.62 points or 0.06% to 78,148.49. The Nifty 50 index lost 18.95 points or 0.08% to 23,688.95.

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