Shares may see a firm start

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 13.50 points at the opening bell.

Global markets:

Asian stocks rose on Thursday following record highs on Wall Street. This was driven by hopes of interest rate cuts in the US due to softer inflation data.

Data on Wednesday showed US CPI inflation grew at a slightly softer-than-expected month-on-month rate in April, while core CPI , which excludes volatile food and energy prices, fell to an annualized 3.6% from 3.8% in March. Although inflation did slow down slightly in April, it is still higher than the Federal Reserve's target and comes after a strong producer price index reading.

The positive sentiment from Wall Street overshadowed some negative news in Asia, such as a shrinking Japanese economy and increased trade tensions between the US and China.

Japan's gross domestic product shrank 0.5% quarter-on-quarter in the three months to March 31, government data showed on Thursday. It fell sharply from the 0.1% increase seen in the December quarter.

Domestic Markets:

Domestic stocks ended a touch lower on Wednesday, snapping a 3-day winning streak. Investors grew jittery ahead of key US inflation data that could influence the Fed's rate decisions. Real estate and energy shares provided a lift, but FMCG and media shares fell. Foreign outflows persist, while domestic investors cherry-pick stocks. Uncertainty due to Fed rate decisions and continous foreign selling is causing investors to be cautious. The barometer index, the S&P BSE Sensex declined 117.58 points or 0.16% to 72,987.03. The Nifty 50 index lost 17.30 points or 0.08% to 22,200.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,832.83 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,788.38 crore in the Indian equity market on 15 May 2024, provisional data showed.

FPIs have sold shares worth over Rs 36372.77 crore in May so far. They offloaded shares worth 35692 crore in April 2024.

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