GIFT Nifty:
The GIFT Nifty January 2025 futures contract is currently up 6.50 points, indicating a mildly positive start for the Nifty 50.
Economy:
India’s fiscal deficit reached Rs 8.5 lakh crore in the first eight months of the fiscal year (April-November), representing 52.5% of the budgeted target, according to government data released on December 31st. This exceeds the deficit recorded during the same period in the previous fiscal year, which stood at 50.7%.
Capital expenditure, though improving, lagged behind last year's pace. At Rs 5.13 lakh crore, it amounted to 46.2% of the budgeted target of Rs 11.1 lakh crore, compared with 58.5% achieved in the corresponding period of the previous fiscal year. Overall government spending reached 60.1% of the budgeted target, slightly higher than the 59% recorded in the previous year.
Revenue receipts fell short of last year's levels. Net tax revenue collection stood at 55.9%, lower than the corresponding figure in the previous year.
Institutional Flows:
Foreign portfolio investors (FPIs) sold shares worth Rs 4,645.22 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,546.73 crore in the Indian equity market on 31 December 2024, provisional data showed.
According to NSDL data, FPIs have sold shares worth over Rs 2589.63 crore in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.
Global Markets:
Asian markets were shut for a New Year holiday, while the US stock market ended lower overnight in a low-volume session.
At the close in NYSE, the Dow Jones Industrial Average fell 0.07%, while the S&P 500 index lost 0.43%, and the NASDAQ Composite index declined 0.9%.
Tesla stock gave up gains to close 3.2% lower. Chinese state news agency Xinhua reported that the company's energy storage gigafactory in Shanghai has entered trial production, just seven months after construction began, with full-scale production expected to commence early next year.
The US market is closed on Wednesday for New Year's Day.
Domestic Market:
The domestic equity indices ended Tuesday with modest losses, marking the second consecutive day of negative trading. The Nifty 50 index closed below the 23,650 level, having reached an intraday high of 23,689.85 in the afternoon session. The market was weighed down by weakness in IT stocks. However, gains in sectors such as pharma, PSU banks, and oil and gas offered some support. Investor sentiment remained cautious amid a strengthening US dollar and continued FII selling as the year draws to a close. The S&P BSE Sensex declined 109.12 points or 0.14% to 78,139.01. The Nifty 50 index ended almost flat at 23,644.80.