Indices may open lower amid mixed Asian signals

GIFT Nifty:

The GIFT Nifty December futures contract is trading 80 points lower, indicating a negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 9,947.55 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 6,907.97 crore in the Indian equity market on 25 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 40840.71 crore (so far) in the secondary market during November 2024. This follows their sale of shares worth Rs 1,13,858.81 crore in October 2024.

Global Markets:

Asian stocks were mixed on Tuesday following U.S. President-elect Donald Trump's announcement of proposed tariffs on China, Mexico, and Canada.

Trump stated on his Truth Social platform that he plans to implement a 10% tariff on goods from China and a 25% tariff on imports from Mexico and Canada. He cited the need to address issues of illegal migration and drug trafficking across U.S. borders.

Key U.S. economic data is due this week, with the Federal Reserve releasing the minutes from its latest FOMC meeting on Tuesday and U.S. GDP data expected on Wednesday.

On Monday, U.S. stock benchmarks hit record highs. The Dow Jones Industrial Average rose 1%, the S&P 500 gained 0.3% to close at 5,987.40, and the NASDAQ Composite advanced 0.27% to 19,054.84. Markets were buoyed by the nomination of Scott Bessent as Treasury Secretary, continued flows into cyclical sectors, and reports of a potential ceasefire between Israel and Lebanon, which drove oil prices lower.

Investors are also awaiting the PCE Price Index, the Federal Reserve's preferred inflation measure, later this week. Trading volumes are expected to remain light due to the Thanksgiving holiday.

Domestic Market:

The domestic equity indices soared on Monday, extending their gains from the previous session. The Nifty 50 index surpassed the 24,200 mark, driven by strong performance across sectors, particularly PSU banks, energy, and realty. The market rally was primarily fueled by the Bharatiya Janata Party's landslide victory in the Maharashtra assembly elections. Investors were optimistic about the continuity of pro-business policies under the BJP-led government. Additionally, a reverse trade dynamic, triggered by sell-offs in Chinese stocks, further supported the Indian market's upward momentum.

The S&P BSE Sensex soared 992.74 points or 1.25% to 80,109.85. The Nifty 50 index jumped 314.65 points or 1.32% to 24,221.90. The Nifty 50 index has jumped 3.73% in two trading sessions.

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