BENCHMARKS MAY START LOWER

GIFT Nifty:

The GIFT Nifty October futures contract is down 53.50 points, suggesting a negative start for the Nifty 50.

India`s Index of Industrial Production (IIP) in India witnessed a contraction of 0.1% in August on an annual basis against a growth of 4.7% in July, as per data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.

The Mining sector experienced a significant contraction of 4.3%, due to heavy rainfall impacting operations. In contrast, the Manufacturing sector managed a modest growth of 1.0%, while Electricity production fell by 3.7%.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,162.66 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,730.87 crore in the Indian equity market on 11 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 62,616.18 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Most Asian stocks climbed on Monday, while Chinese market experienced volatility following Beijing`s announcement of fiscal stimulus measures. While the stimulus plans were welcomed, concerns over their scope and timing tempered enthusiasm.

China`s finance ministry detailed plans for increased government debt issuances and support for provincial governments. However, the lack of specific details, particularly regarding the scale and timing of the measures, caused some disappointment. Analysts expressed concerns about the potential for a significant increase in government debt.

Economic data from China highlighted ongoing weakness. China`s consumer price index (CPI) rose 0.4% from a year earlier last month, against a 0.6% rise in August. CPI was unchanged month-on-month, versus a 0.4% gain in August and below an estimated 0.4% increase. Meanwhile, the producer price index (PPI) fell 2.8% year-on-year in September, versus a 1.8% decline the previous month.

Asian markets drew support from the positive performance of US stocks on Friday. The S&P500 rose 0.61% to a record high of 5,815.03 points, while the Dow Jones surged nearly 1% to a record high of 42,863.86 points. The Nasdaq lagged, rising 0.3% to 18,342.94 points.�Positive earnings from major banks helped investors look past questions over whether the Federal Reserve will cut interest rates in November.

The Producer Price Index (PPI) for final demand in the US rose 1.8% on a yearly basis in September. This reading followed the 1.9% increase recorded in August. The US consumer price index for all urban consumers rise by 0.2% month on month (MoM) on a seasonally-adjusted basis in September, the same rise as in August and July.�

This week, investors will focus on additional third-quarter earnings reports and statements from Federal Reserve officials.

Domestic Market:

The domestic equity benchmarks closed lower on Friday, amid mixed global cues. The Nifty50 settled below 25,000 mark, weighed down by selling in banks and financial stocks. Pharma, healthcare, and metal shares outperformed. The market undertone remains fragile as FIIs continue to sell amid concerns about earnings downgrades and attractive valuations in other markets. In the barometer index, the barometer index, the S&P BSE Sensex was down 230.05 points or 0.28% to 81,381.36. The Nifty 50 index lost 34.20 points or 0.14% to 24,964.25.

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