GIFT NIFTY SIGNALS A POSITIVE START

GIFT Nifty:

The GIFT Nifty October futures contract is up 42 points, suggesting a positive start for the Nifty 50.

The World Bank reaffirmed its forecast for India`s economic growth in fiscal year 2025 (FY25), projecting a rate of 7%. The report, released on Thursday, attributed this positive outlook to a robust agricultural harvest, government job-creation initiatives, and planned fiscal consolidation.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,926.61 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,878.33 crore in the Indian equity market on 10 October 2024, provisional data showed.

Global Markets:

Most Asian stocks rose on Friday, buoyed by South Korea`s central bank decision to cut interest rates. The Bank of Korea (BoK) lowered its benchmark rate by 25 basis points to 3.25%, marking its first rate reduction in over four years. The move signaled a shift away from its restrictive monetary policy stance in response to slowing economic growth and easing inflation.

While South Korean stocks rallied, China`s markets retreated as investors cautiously awaited policy announcements from a scheduled finance ministry press conference. Hong Kong`s markets were closed for a holiday.

In the US, stocks ended slightly lower on Thursday as hotter-than-expected consumer inflation data dampened investor sentiment. The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average each declined by less than 0.25%.

Focus shifted to the upcoming third-quarter earnings season, which was set to kick off later that day. Investors were also eagerly awaiting the unveiling of Tesla`s robotaxi and the release of producer price index (PPI) inflation data, both of which were expected to provide further insights into the US economy.

Headline US consumer price index (CPI) inflation eased slightly in September, falling from 2.5% to 2.4% year-over-year. However, core CPI inflation, which excludes volatile food and energy prices, rose to 3.3% from 3.2%.

Additionally, initial jobless claims in the US unexpectedly increased for the week ending October 4, reaching 258,000. This represented the highest level of new jobless claims since June 2023.

Domestic Market:

The domestic equity benchmarks ended with minor gains on Thursday. The market opened with gains on positive global cues, but struggled to maintain momentum as investors awaited US inflation data. The Nifty settled closed near the 25,000 level. Banks and financial stocks were in demand. On the other hand, pharma, healthcare and IT stocks declined. The S&P BSE Sensex added 144.31 points or 0.18% to 81,611.41. The Nifty 50 index rose 16.50 points or 0.07% to 24,998.45.

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