GIFT Nifty signals negative start

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could decline 32.50 points at the opening bell.

Global Markets:

The US Dow Jones index futures is currently down by 113 points, signaling a weak opening for US stocks today. This decline is attributed to ongoing uncertainty regarding the trajectory of interest rates. Traders remain cautious and on edge due to the anticipation of key earnings reports, notably from NVIDIA Corporation, adding to the market`s overall sense of unpredictability. The absence of trading cues on Monday, owing to a US market holiday, is expected to give way to increased trading activity in the upcoming days, particularly as the earnings season progresses.

Asian markets exhibit a mixed opening, influenced by the closure of US markets in the preceding session.

The People`s Bank of China took an unexpected step by reducing its five-year benchmark loan prime rate on Tuesday, aiming to further ease monetary conditions and support the decelerating economic recovery. The cut in the five-year LPR, instrumental in determining mortgage rates, lowered it from 4.10% to 3.95%, while the one-year LPR remained unchanged at 3.45%.

The US 10-year bond yield is recorded at 4.31%. In the commodities market, Brent crude for April 2024 settlement lost 5 cents or 0.06% to $83.42 a barrel.

Domestic Equity Market:

The domestic stock market extended its winning streak for the fifth consecutive session on Monday, with the Nifty achieving a new all-time high of 22,186.65 before closing near the day`s peak. Initially experiencing fluctuations due to mixed global cues, the market ultimately benefited from robust buying in several sectoral indices and heavyweight stocks, concluding the day on a positive note. Consumer durables, pharma and FMCG shares were in demand, while realty, PSU banks, IT stocks declined.

At close, the Sensex surged by 281.52 points (0.39%) to reach 72,708.16, while the Nifty climbed by 81.60 points (0.37%) to settle at 22,122.30.

Foreign portfolio investors (FPIs) sold shares worth Rs 754.59 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 452.70 crore in the Indian equity market on 19 February 2024, provisional data showed.

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