Weak Asian cues may put pressure on stocks

GIFT Nifty:

The GIFT Nifty November futures contract is down 3 points, suggesting a flat start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 548.69 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 730.13 crore in the Indian equity market on 29 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 109295.75 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Asian stocks fell on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.

 

Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.

In the US, indices marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors. The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.

Sentiment was underpinned by strong earnings from Alphabet Inc. Tech majors Meta Platforms Inc and Microsoft Corporation are set to report on Wednesday, while Amazon.com Inc and Apple Inc are due on Thursday.

A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserves preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

Domestic Market:

The domestic equity benchmarks concluded Tuesday's trading session with modest gains, extending their positive streak to the second consecutive day. The Nifty 50 index closed above the 24,450 mark, buoyed by strong performances from banking and financial services stocks.

The indices opened on a flat note, influenced by mixed global cues, and spent the first half of the trading session in negative territory. However, a mid-session recovery propelled the indices to close near their daily highs. While banking and financial stocks were the primary drivers of the market's uptick, sectors like auto, pharma, and IT faced selling pressure.

The S&P BSE Sensex, was up 363.99 points or 0.45% to 80,369.03. The Nifty 50 index added 127.70 points or 0.52% to 24,466.85.

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