GIFT NIFTY INDICATES A POSITIVE OPENING

GIFT Nifty:

The GIFT Nifty September futures contract is up 25.50 points, suggesting a positive start for the Nifty 50.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,364.82 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,532.18 crore in the Indian equity market on 13 September 2024, provisional data showed.

FPIs have bought shares worth over Rs 17,630.13 crore in September 2024 (so far). They sold shares worth 21,368.51 crore in August 2024.

Global Markets:

Asian stocks were mixed on Monday as concerns over China`s economic slowdown weighed on sentiment.

China`s economy continued to weaken in August, with factory output, consumption, and investment all declining more than expected. Home prices fell at the fastest pace since 2014, prompting the People`s Bank of China to signal more monetary easing and a heightened focus on combating deflation.

Sentiment in Asia was also dampened following a second assassination attempt on US presidential candidate Donald Trump. He was later taken to safety.

US stocks closed higher on Friday ahead of the Federal Reserve`s upcoming policy meeting. The S&P 500 gained 0.54%, the tech-heavy Nasdaq Composite added 0.65%, and the Dow Jones Industrial Average jumped 0.72%, marking their fifth consecutive winning day.

Wall Street is now looking ahead to the Fed`s meeting on September 17-18, where a 25-basis-point interest rate cut is widely expected. The current target rate stands at 5.25% to 5.5%.

Economic data indicating a moderation in inflation further supports the case for a rate cut. The consumer price index in August rose 2.5% year-over-year, the lowest level since February 2021. Wholesale prices increased by 0.2% in August, in line with expectations.

Domestic Market:

The domestic equity barometers ended with minor losses on Friday. The benchmark Nifty 50 index closed below the 25,400 mark. FMCG and oil & gas sectors faced selling pressure, while realty, media, and PSU bank stocks gained ground. Global equity markets remained largely positive, buoyed by US macroeconomic data suggesting that inflation may be under control. However, weaker-than-expected US labor market data tempered some of this optimism. Domestic sentiment was supported by daily FII inflows and a decline in US 10-year Treasury yields. The S&P BSE Sensex declined 71.77 points or 0.09% to 82,890.94. The Nifty 50 index shed 32.40 points or 0.13% to 25,356.50.

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