GIFT Nifty:
Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 20.50 points at the opening bell.
Foreign portfolio investors (FPIs) bought shares worth a staggering Rs 4,670.95 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 146.51 crore in the Indian equity market on 23 May 2024, provisional data showed.
FPIs have sold shares worth over Rs 33515.05 crore in May so far. They offloaded shares worth 35692 crore in April 2024.
Global Markets:
Asian stocks dipped on Friday, while the dollar strengthened as positive U.S. economic data increased expectations of sustained higher interest rates and a delayed rate cut by the Federal Reserve, dampening investor appetite for riskier assets.
Data released Thursday showed a decline in U.S. jobless claims, and S&P Global's Flash PMI survey indicated faster-than-anticipated business activity expansion in May. This robust economic data, coupled with hawkish minutes from the Fed's most recent meeting earlier this week, has prompted traders to reduce their bets on rate cuts this year. Markets are now fully expecting a rate cut in December, with a September cut remaining uncertain, according to the CME FedWatch tool.
In Japan, inflation moderated for the second consecutive month, as investors continued to assess the Bank of Japan's capacity for further interest rate hikes this year. Core CPI, which excludes volatile fresh food prices, rose 2.2% year-on-year in April, according to data released by the Statistics Bureau on Friday. This represents a decrease from the 2.6% increase observed in the previous month.
In the United States, the Dow Jones Industrial Average (DJIA) plunged on Thursday, dropping over 600 points and retreating back to the 39,000 level as investors reacted to diminishing hopes for a September interest rate cut by the Federal Reserve.
Initial jobless claims for the week ending May 18th came in at a higher-than-expected 2.15 lakh, while May’s S&P Global Services Purchasing Managers Index (PMI) rose to a 12-month high of 50.9 on Thursday.
Domestic Markets:
The domestic equity benchmarks rocketed higher Thursday, with the Nifty50 breaching a fresh record and settling above 22,950. Banking and financial stocks led the charge, fueled by the RBI's surprise Rs 2.11 lakh crore dividend payout to the government. This windfall gives the government more elbow room, potentially translating to lower borrowing and interest rates. This scenario is a boon for banks, boosting their treasury income and paving the way for increased government infrastructure spending. In the barometer index, the S&P BSE Sensex, surged 1,196.98 points or 1.61% to 75,418.04. The Nifty 50 index jumped 369.85 points or 1.64% to 22,967.65.