GIFT Nifty sets the stage for a strong start

GIFT Nifty:

GIFT Nifty May 2025 futures were trading 117 points higher in early trade, suggesting a strong opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth 2,585.86 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,378.49 crore in the Indian equity market on 7 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 7954.17 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.

Global Markets:

The US Dow Jones index futures were currently up by 105 points, signaling a positive opening for US stocks today.

Most Asian markets advanced on Thursday after the U.S. Federal Reserve held interest rates steady, maintaining its benchmark overnight rate in the range of 4.25% to 4.5%, where it has remained since December. The move was widely anticipated by market participants.

In a post-meeting press conference, Federal Reserve Chair Jerome Powell cautioned that the existing tariff increases could weigh on economic growth and contribute to higher long-term inflation if they remain in place.

Investors are closely monitoring developments ahead of the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent is scheduled to meet his Chinese counterpart in Switzerland later this week to discuss trade and economic issues.

U.S. equities closed higher on Wednesday, supported by gains in semiconductor stocks. The S&P 500 rose 0.4% to 5,631.27, the NASDAQ Composite gained 0.3% to 17,738.16, and the Dow Jones Industrial Average advanced 0.7% to 41,113.97.

Markets responded to reports suggesting the Trump administration may reverse restrictions imposed during the Biden administration on the export of advanced artificial intelligence chips. These restrictions were originally intended to maintain U.S. leadership in AI technology and limit Chinas access to such products. A rollback could benefit U.S.-based chipmakers by enabling broader overseas sales.

Shares of Nvidia rose 3.1% on the news, though the stock declined slightly in after-hours trading. U.S.-listed shares of TSMC gained 1.3% and were unchanged after hours. Intel ended the session up 1.9%.

Separately, President Donald Trump announced via social media that he will hold a press conference on Thursday to unveil a major trade deal with representatives of a big and highly respected country. Media reports suggest the country involved is the United Kingdom, which has been engaged in ongoing trade negotiations with the U.S.

Domestic Market:

The headline equity benchmarks ended with marginal gains on Wednesday as investors treaded cautiously amid geopolitical tensions and awaited cues from the U.S. Federal Reserve. Sentiment was weighed by news of Operation Sindoor a precision strike by Indian forces on terror sites in Pakistan following the Pahalgam attack. The S&P BSE Sensex rose 105.71 points or 0.13% to 80,746.78. The Nifty 50 index added 34.80 points or 0.14% to 24,414.40.

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