Stocks poised for upward start

GIFT Nifty:

The GIFT Nifty December futures contract is trading 68.50 points higher, suggesting a positive opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,320.68 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,200.16 crore in the Indian equity market on 19 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 37766.34 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 equities climbed on Friday, buoyed by Wall Street's gains and a tempered reaction to Nvidia Corp.'s revenue outlook. Bitcoin continued its upward move, nearing the $100,000 mark, while the US dollar strengthened.

Japan's manufacturing sector contracted for the fifth consecutive month in November, as indicated by the preliminary au Jibun Bank flash PMI, which fell to 49.0 from 49.2 in October.

Japan's October consumer price index (CPI) data revealed a slight uptick in headline inflation and a further rise in core inflation, surpassing the Bank of Japan's 2% target. This development fuels expectations of additional interest rate hikes.

US equities closed higher on Thursday, though tech stocks continued to face pressure following Alphabet's decline due to regulatory concerns. Uncertainty surrounding interest rates persisted, fueled by slightly elevated jobless claims and cautious remarks from Federal Reserve officials.

At the close in NYSE, the Dow Jones Industrial Average rose 1.06%, while the S&P 500 index gained 0.53%, and the NASDAQ Composite index gained 0.04%.

On the economic front, weekly jobless claims fell to 213,000 for the week ending 16th November, down from 219,000 the previous week. This data signals ongoing strength in the U.S. labour market.

Alphabet Inc. shares declined 0.4% in after-hours trading following a 4.7% drop during the regular session on Thursday. The Department of Justice (DOJ) has proposed that Google divest its Chrome web browser to mitigate its dominance in online search. Additionally, the DOJ recommended that Google share its data and search results with competitors and potentially sell its Android operating system. These recommendations follow a recent court ruling that declared Google's online search monopoly illegal.

The broader tech sector was also impacted by Nvidia's mixed third-quarter results. While the company exceeded earnings expectations on strong AI demand, it forecast a slower revenue growth rate for the current quarter.

Domestic Market:

Domestic equity markets experienced a significant decline on Thursday, with the Nifty index closing below the 23,350 mark. The market's decline was primarily driven by a combination of factors, including heightened geopolitical tensions and the fresh Adani Group crisis. PSU banks and metal stocks bore the brunt of the selling pressure, while IT and private bank stocks bucked the trend and witnessed buying interest. The barometer index, the S&P BSE Sensex fell 422.59 points or 0.54% to 77,155.79. The Nifty 50 index declined 168.60 points or 0.72% to 23,349.90.

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