Weak start expected for indices

GIFT Nifty:

The GIFT Nifty January 2025 futures contract is currently down 13 points, indicating a negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 8,132.26 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 7,901.06 crore in the Indian equity market on 14 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 28757.51 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:

Most Asian stocks climbed on Tuesday, following a subdued US trading session. Investors are eagerly awaiting key US Consumer Price Index (CPI) inflation data, which will provide crucial insights into the Federal Reserve's future interest rate policy. Persistent inflation could limit the Fed's ability to cut interest rates, a concern highlighted in their December meeting.

Eurozone industrial production data is also expected to be released ahead of the US inflation figures.

Meanwhile, impeached South Korean President Yoon Suk Yeol was arrested on Wednesday by authorities. This follows a failed attempt to impose military law in late 2024, as reported by local media. Yoon will now face trial on charges of insurrection after his unsuccessful attempt to implement martial law in December. This move was met with widespread opposition from citizens and policymakers, triggering nationwide protests and calls for his removal.

US indices exhibited mixed performance on Tuesday, with technology stocks continuing to struggle. The markets are also recovering from a weak start to the year, having declined from record highs in December. The S&P 500 rose 0.1% to 5,842.86 points on Tuesday, while the NASDAQ Composite fell 0.2% to 19,044.39 points. The Dow Jones Industrial Average rose 0.5% to 42,518.28 points.

The US Producer Price Index (PPI), a key indicator of consumer price inflation, came in at 0.2% on Tuesday, lower than expected. The PPI, which measures the change in the price of goods sold by manufacturers, remained unchanged compared to the previous reading.

Domestic Market:

The domestic equity indices staged a rebound on Tuesday, ending a four-day losing streak. The Nifty 50 ended above the 23,170 mark, led by gains in PSU banks and metal stocks. However, IT and FMCG sectors witnessed some correction. Investors appeared to view the recent market correction as overdone, leading to buying interest in oversold sectors.

The S&P BSE Sensex rose 169.62 points or 0.22% to 76,499.63. The Nifty 50 index rose 90.10 points or 0.39% to 23,176.05. In four consecutive trading sessions, the Sensex and Nifty dropped by 2.39% and 2.62%, respectively.

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