Shares may rise at opening bell

GIFT Nifty:

The GIFT Nifty January 2025 futures contract is currently up 19 points, indicating a positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,920.28 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,500.32 crore in the Indian equity market on 21 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 53010.73 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:

U.S. stock futures point to a positive open, with the Dow Jones Industrial Average futures rising 29 points.

Most Asian stocks advanced on Wednesday after President Donald Trump held off from imposing sweeping trade tariffs in his first day in office.

After being sworn in, Trump vowed to sign a series of executive orders, including one declaring a national emergency at the U.S.-Mexico border. However, the initial executive actions stopped short of introducing new tariffs on the three largest U.S. trading partners. Instead, the president directed his administration to address unfair trade practices on a global scale, hinting at a more measured approach to trade policy.

Wall Street had a decent showing on Tuesday as investors digested the potential impact of Trumps policy announcements. Netflix stole the spotlight with stellar earnings. The Dow Jones Industrial Average rose 1.2% to 44,025.81 points, the S&P 500 climbed 0.9% to 6,049.24 points, while the NASDAQ Composite gained 0.6% to 19,756.7.

Netflix Inc. shares surged over 14% in after-hours trading to $993.99, following the announcement of a record-breaking 19 million new subscriber additions in Q4 2024far exceeding expectations.

Meanwhile, President Trump unveiled a $500 billion joint venture named Stargate, involving tech heavyweights like OpenAI, Oracle, SoftBank, Microsoft, NVIDIA, and others. The initiative aims to build advanced AI data centers and energy-generation facilities in Texas over the next four years. This massive collaboration is expected to elevate the U.S.'s AI capabilities to unprecedented levels.

Domestic Market:

The domestic equity benchmarks witnessed a sharp decline on Tuesday, with the Nifty closing below the 24,050 mark. Investor sentiment was dampened by concerns over the potential consequences of a second Trump term, particularly regarding US-China trade tensions, the direction of US Federal Reserve interest rate cuts, and global economic growth. Continued selling by FIIs further exacerbated the downward pressure.

The 50-unit benchmark index touched a high of 23,426.30 early in the day but succumbed to selling pressure, ending the session in negative territory. The trading was volatile due to the expiry of weekly F&O contracts on the Sensex. All sectoral indices on the NSE ended in the red, with realty, consumer durables, and PSU banks experiencing the most significant declines.

The S&P BSE Sensex slumped 1,235.08 points or 1.60% to 75,838.36. The Nifty 50 index dropped 320.10 points or 1.37% to 23,024.65.

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