Shares may slide on weak global cues

GIFT Nifty:

The GIFT Nifty January 2025 futures contract is currently down 20.50 points, indicating a mildly negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,254.68 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,961.92 crore in the Indian equity market on 10 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 22259.88 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 negative open Monday, with the Dow Jones Industrial Average futures down 50 points.

Asian shares slipped on Monday, following a strong US jobs report on Friday that fueled concerns about persistent inflation. This led to a rise in US Treasury yields and boosted the dollar. Brent crude oil prices surged to their highest level in over four months, exceeding $81 per barrel, amid renewed US sanctions against Russia.

The robust jobs data reinforced expectations that the Federal Reserve will maintain its current interest rate stance. Investors are now keenly awaiting key US inflation data this week, including the Consumer Price Index (CPI) report on Wednesday, the New York Fed's one-year inflation expectations on Monday, producer prices on Tuesday, and jobless claims on Thursday.

The US stock market closed lower on Friday after the strong jobs report reignited inflation fears. The Dow Jones Industrial Average plunged 1.63%, the S&P 500 declined 1.54%, and the Nasdaq Composite fell 1.63%.

Nvidia shares dropped 3%, while Advanced Micro Devices stock price fell 4.76% and Apple share price declined 2.41%. Constellation Energy stock jumped 25.16%, while Constellation Brands tanked 17.09%. Walgreens Boots Alliance stock price soared 27.55%

The Labor Department reported that US nonfarm payrolls increased by 256,000 jobs in December, the largest increase since March. The unemployment rate fell to 4.1%.

Investors are now turning their attention to the upcoming fourth-quarter earnings season, which begins this week with several major Wall Street banks reporting their results.

Domestic Market:

The domestic equity market closed with modest losses on Friday, weighed down by persistent FII selling and a weakening rupee. Concerns over subdued economic growth and expectations of a slowdown in quarterly earnings further dampened investor sentiment. While the IT sector rallied after strong TCS results, all other sectoral indices on the NSE declined. The S&P BSE Sensex declined 241.30 points or 0.31% to 77,378.91. The Nifty 50 index fell 95 points or 0.40% to 23,431.50.

Powered by Capital Market - Live News