GIFT Nifty:
Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 69 points at the opening bell.
Global markets:
On the macro front, India’s economy grew much faster than expected in the October to December quarter. Data showed GDP grew 8.4% in the third fiscal quarter on the back of higher private consumption and strong manufacturing and construction activity. The October-December quarter reading was also higher than the 7.6% growth clocked in the prior three months. The government raised its GDP growth outlook for fiscal year 2023-24 to 7.6% from 7.3% forecast earlier.
India's eight core sectors posted a growth of 3.6% in January, according to data released by the Ministry of Commerce and Industry on February 29. In December 2023, core sector growth had printed in at 3.8%. The commerce ministry, on February 29, revised this figure up to 4.9%.
Overseas, Asian stocks are trading higher as investors digested manufacturing data from the mainland. Japan’s Nikkei 225 index hit a fresh record high. South Korea markets were shut for the Movement Day holiday.
China’s manufacturing activity contracted for a fifth straight month in February, official figures on Friday showed. Data from China’s National Bureau of Statistics showed manufacturing PMI fell to 49.1 in February from 49.2 in January. The Caixin/S&P Global manufacturing PMI, however, edged up to 50.9 in February from 50.8 in the previous month.
Overnight on Wall Street, the S&P 500 and Nasdaq closed at record highs as tech and chip stocks rallied. The U.S. personal consumer expenditures (PCE) price index, the Federal Reserve's preferred gauge for inflation, rose 0.3% in January from a month earlier. The core PCE price index rose 0.4%.
Domestic markets:
Back home, the equity benchmarks ended with modest gains on Thursday. Market volatility was notable due to the expiry of the February F&O series. The barometer index, the S&P BSE Sensex up 195.42 points or 0.27% to 72,500.30. The Nifty 50 index added 31.65 points or 0.14% to 21,982.80.
Foreign portfolio investors (FPIs) bought shares worth Rs 3,568.11 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 230.21 crore in the Indian equity market on 29 February, provisional data showed.