Benchmark indices to open in the green; FII selling continues unabated

GIFT Nifty:

The GIFT Nifty January 2025 futures contract were currently trading 0.76% higher, indicating a positive start for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,582.95 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,165.89 crore in the Indian equity market on 30 January 2025, provisional data showed.

According to latest available data, FPIs have sold shares worth Rs 86,185.67 crore (so far) in the secondary market during January 2025. This follows their sale of shares worth Rs 16,982.48 crore in December 2024.

Global Markets:

The US Dow Jones index futures were currently in the green, signalling a positive opening for US stocks today.

Asia markets mostly rose Friday as investors looked forward to the slew of data releases scheduled for released today. Hong Kong and Chinese markets remain closed for the Lunar New Year holiday.

The Tokyo consumer price index, excluding fresh food, rose 2.5% year on year in January, compared with 2.4% in the previous month. Japans unemployment rate for December fell to 2.4% from 2.5% in the previous month. Meanwhile, Japans retail sales for December climbed 3.7% from the previous year, while its industrial output figures for December grew at 0.3%, month on month, from the 2.2% drop in the month before.

European markets closed at record highs on Thursday after the European Central Bank announced its decision to cut interest rates for fifth time in a row.

The ECB kicked off its first meeting of 2025 with a 25-basis-point interest rate cut Thursday. The move brought the central banks key overnight deposit facility rate to 2.75%, marking its fifth cut since the bank began easing monetary policy last June.

Market watchers expect further easing this year despite euro zone inflation ticking upwards over the past few months; activity in the single currency areas manufacturing and services sectors remains broadly subdued and consumer confidence is below its long-term average, European Commission data shows.

Overnight in the U.S., all three major indexes rose.

The Dow Jones Industrial Average climbed 168.61 points, or 0.38%, closing at 44,882.13. At its session highs, it had added nearly 300 points. The S&P 500 rose 0.53% to 6,071.17, while the Nasdaq Composite gained 0.25% to end at 19,681.75.

Profit booking emerged on Wall Street after U.S. President Donald Trump announced his intentions to implement 25% tariffs U.S. imports from Canada and Mexico. Domestic Market:

The domestic equity indices saw healthy gains on Thursday, extending their upward trend for the third consecutive session as investors look ahead to the Union Budget 2025, anticipating growth-supportive policies in line with fiscal prudence. Investors assessed the U.S. Federal Reserve's decision to keep interest rates unchanged at 4.254.5%. The Nifty ended near the 23,250 mark.

The S&P BSE Sensex, which is the barometer index for the domestic equity market, rallied 226.85 points or 0.30% to 76,759.81. The Nifty 50 index added 86.40 points or 0.37% to 23,249.50. In three consecutive trading sessions, the Sensex and Nifty added by 1.85% and 1.84%, respectively.

In the broader market, the S&P BSE Mid-Cap index shed 0.04% and the S&P BSE Small-Cap index rose 0.02%.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 6.70% to 17.39.

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