Shares likely to extend gains amid positive global cues

GIFT Nifty:

GIFT Nifty April 2025 futures were trading 122 points higher in early trade, suggesting a strong start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 3,936.42 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,512.77 crore in the Indian equity market on 16 April 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 28025.64 crore in the secondary market during April 2025 (so far). This follows their sale of shares worth Rs 6027.77 crore in March 2024.

Global Markets:

Dow Jones futures is up 162 points, indicating a surge in the US stocks today.

Asian equity market gained on Thursday, supported by positive signals from U.S. equity futures, as investors focused on the upcoming U.S.-Japan trade discussions. Japan is among the first countries to initiate direct trade talks with the U.S., making the outcome of these negotiations a key focus for global markets.

Data released by Japans Ministry of Finance on Thursday showed that exports rose 3.9% year-on-year in March, marking the sixth consecutive month of growth. Imports increased by 2% over the same period, resulting in a trade surplus of 544.1 billion yen (approximately $3.84 billion).

In contrast, U.S. markets declined sharply overnight. Federal Reserve Chair Jerome Powell cautioned that ongoing trade tensions could affect the central banks ability to meet its inflation and employment targets. His comments contributed to broad-based selling in equities.

The Dow Jones Industrial Average closed 1.7% lower, the S&P 500 fell 2.2%, and the NASDAQ Composite declined by 3.1%. Notable declines included Advanced Micro Devices (down over 7%), Intel Corporation (down 3%), and Broadcom Inc. (down 2.4%).

Powell also indicated that the Federal Reserve is not inclined to cut interest rates in the near term, citing inflationary pressures and economic uncertainties linked to the implementation of new tariffs. He emphasized a cautious, wait-and-see approach in response to the evolving economic environment.

Separately, U.S. retail sales data released Wednesday showed a 1.4% increase in March, following a revised 0.2% gain in February. The rise was driven in part by increased vehicle purchases, as consumers anticipated the impact of potential tariffs.

Domestic Market:

The headline equity benchmarks closed with solid gains on Wednesday, marking their third consecutive session in the green. The Nifty closed comfortably above the 23,400 mark, while the Sensex surged past 77,000cheered on by reports that China is warming up to trade talks with the US. That glimmer of diplomatic hope lit a fire under investor sentiment.

The financial and banking sectors did the heavy lifting, while rotational buying across sectoral giants added fuel to the rally. The S&P BSE Sensex advanced 309.40 points or 0.40% to 77,044.29. The Nifty 50 index added 108.65 points or 0.47% to 23,437.20. In three consecutive sessions, the Sensex and Nifty have risen by 4.33% and 4.63%, respectively.

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