GIFT Nifty signals a positive start

GIFT Nifty:

The GIFT Nifty January 2025 futures contract is currently up 90 points, indicating a positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,491.46 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,615.28 crore in the Indian equity market on 6 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 10263.88 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 up 65 points, signaling a positive opening for U.S. stocks today.

Asian stocks were mixed on Wednesday, with the yen weakening against a strong dollar. Traders anticipate the Federal Reserve will maintain a cautious approach to interest rate cuts, given recent data indicating a resilient U.S. economy and labor market.

Tuesday's data showed a rise in U.S. job openings alongside a slight slowdown in hiring, suggesting the labor market remains strong. This, coupled with stronger-than-expected purchasing managers' index data, has fueled concerns about persistent inflation.

Job openings, a measure of labor demand, rose 259,000 to 8.098 million by the last day of November, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. Meanwhile, U.S. services sector PMI increases to 54.1 in December from 52.1 in November.

These factors are expected to limit the Fed's ability to aggressively cut interest rates, aligning with the bank's recent cautious stance. The upcoming release of December's nonfarm payrolls data on Friday will provide further insights into the interest rate outlook.

US stock indices declined on Tuesday, driven by rising Treasury yields and concerns about inflation. The S&P 500 fell 1.1%, the Nasdaq Composite dropped 1.9%, and the Dow Jones Industrial Average slipped 0.4%.

Nvidia, a leading technology stock, experienced a significant decline on Tuesday despite announcing new products at the Consumer Electronics Show. While these innovations bode well for Nvidia's long-term growth, analysts noted a limited impact on the company's near-term prospects.

Domestic Market:

The domestic equity indices staged a rebound on Tuesday, ending with modest gains after two consecutive days of declines. The Nifty 50 index closed above the 23,700 mark, driven by gains in energy and metal stocks.

The S&P BSE Sensex gained 234.12 points or 0.30% to 78,199.11. The Nifty 50 index added 91.85 points or 0.39% to 23,707.90. In the previous two trading sessions, the Sensex and Nifty dropped by 2.18% and 1.99%, respectively.

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