Indices may extend gains

GIFT Nifty:

The GIFT Nifty December futures contract is trading 31 points higher, indicating a positive opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,797.60 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 900.62 crore in the Indian equity market on 4 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 5688.23 crore (so far) in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.

Global Markets:

Asian stocks were mixed on Thursday as investors grappled with ongoing political crises in France and South Korea.

Japanese and Australian equities advanced, while South Korean shares declined after the opposition party initiated impeachment proceedings against President Yoon Suk Yeol following his controversial declaration of martial law.

In France, Prime Minister Michel Barnier's government was ousted by lawmakers just three months after its formation, plunging the country into further political uncertainty. This follows President Macron's failed attempt to secure a parliamentary majority in recent elections, leaving him without a clear path forward.

Meanwhile, US stock markets closed at record highs on Wednesday, driven by strong earnings reports, particularly from Salesforce, and continued optimism surrounding tech giants like NVIDIA.

The S&P 500 rose 0.6% to a record high of 6,086.49 points, while the NASDAQ Composite rose 1.3% to a peak of 19,732.87 points. The Dow Jones Industrial Average ended up 0.7% at a record high of 45,014.04 points.

Federal Reserve Chair Jerome Powell's comments on the US economy also boosted investor sentiment. Powell expressed confidence in the economy's strength and indicated that the Fed may adopt a more cautious approach to future rate cuts.

Market participants are now eagerly awaiting the release of the US nonfarm payrolls report on Friday, which is expected to provide insights into the labor market's health and its potential impact on interest rate policy.

Domestic Market:

The domestic equity benchmarks concluded Wednesday's trading session with modest gains, marking their fourth consecutive day of upward momentum. The Nifty 50 index managed to hold above the 24,450 level. PSU banks, realty and financial services stocks were in demand. However, FMCG and auto shares declined. The Nifty 50 remained volatile throughout the day as investors adopted a cautious approach ahead of the Reserve Bank of India's (RBI) upcoming monetary policy announcement. While a positive sentiment prevailed for a significant portion of the session, profit-booking in select heavyweight stocks capped the upside potential.

The S&P BSE Sensex was up 110.58 points or 0.14% to 80,956.33. The Nifty 50 index added 10.30 points or 0.04% to 24,467.45.

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