Indices may open higher

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 13 points at the opening bell.

Global markets:

Asian stocks were mixed Friday as investors weighed the Federal Reserve's monetary policy path. Fed officials signaled interest rates might stay elevated for longer despite signs of easing inflation.

China's industrial production grew 6.7% year-on-year in April, accelerating from March's 4.5% rise, according to data from the National Bureau of Statistics. However, consumer spending remained weak, with retail sales growing 2.3% year-on-year in April, down from March's 3.1% increase.

US stocks closed slightly lower on Thursday after the Dow Jones reached an intra-day high of 40,000 for the first time. The rally followed recalibrated investor expectations for Fed rate cuts after April's inflation slowdown. Strong corporate earnings also contributed to the bullish sentiment.

On Thursday, the US weekly Initial Jobless Claims for the week ending May 11 came in at 222,000 from the previous week of 232,000, according to the US Bureau of Labor Statistics (BLS). Housing Starts climbed 5.7% MoM to 1.36 million in April, while Building Permits declined by 3% MoM in April to 1.44 million.

Domestic Markets:

Domestic equity benchmarks took a wild ride Thursday, bucking the global trend and finishing nearly 1% higher despite early jitters. The day was volatile thanks to weekly index options expiry, sending the Nifty 50 bouncing off its lows of 22,054.55 to close above 22,400. The barometer index, the S&P BSE Sensex gained 676.69 points or 0.93% to 73,663.72. The Nifty 50 index added 203.30 points or 0.92% to 22,403.85.

Foreign portfolio investors (FPIs) sold shares worth Rs 776.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,127.81 crore in the Indian equity market on 16 May 2024, provisional data showed.

FPIs have sold shares worth over Rs 37149.26 crore in May so far. They offloaded shares worth 35692 crore in April 2024.

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