INDICES MAY OPEN LOWER AMID MIXED ASIAN CUES

GIFT Nifty:

The Nifty 50 index is expected to open 20 points lower based on GIFT Nifty futures.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,271.45 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 529.48 crore in the Indian equity market on 16 July 2024, provisional data showed.

FPIs have bought shares worth over Rs 14,674.88 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Economy:

The International Monetary Fund (IMF) upgraded India`s economic outlook, raising its growth forecast for the 2024-25 financial year to 7%. This revision is driven by an anticipated improvement in private consumption, especially in rural areas.

The IMF maintained its projection of 6.5% growth for the following year (2025-26). This information comes from their latest World Economic Outlook report.

In April, the IMF had already revised India`s growth forecast upwards, from 6.5% to 6.8%. This latest increase reflects continued optimism about the Indian economy.

Global Markets:

Dow Jones Futures were up 100 points, indicating a positive opening in the US stocks today.

Asian markets were mixed on Thursday. Chip stocks dipped as investors worried about potential trade war escalation between the US and China. Meanwhile, the Japanese yen strengthened to a six-week high, likely due to recent interventions by the Japanese government.

News of stricter US export controls on advanced chip technology to China caused chip stocks and the Nasdaq to fall in the US overnight. This decline was led by tech giants Nvidia and Apple.

Later today, investors will focus on the European Central Bank`s policy decision. The bank is likely to maintain current interest rates, but their comments will be closely watched for hints about future rate adjustments.

US markets ended Wednesday with mixed results. The S&P 500 and Nasdaq took a significant hit due to a sell-off in tech stocks driven by trade war concerns. The S&P 500 dropped 1.4%, and the Nasdaq plunged 2.8%. However, the Dow Jones bucked the trend, rising 0.6% (243 points) after a surge of over 700 points on the previous day.

Domestic Market:

Indian stock market was shut on Wednesday, 17 July 2024, on account of Muharram.

The domestic equity benchmarks ended slightly higher Tuesday, extending gains for the third day. The barometers hit fresh highs early on, boosted by FMCG and IT sectors, but profit-booking erased most of those gains. Investors are cautious about high valuations. US Fed Chair Powell`s dovish comments and a drop in US bond yields offered some support.

In the barometer index, the barometer index, the S&P BSE Sensex, rose 51.69 points or 0.06% to 80,716.55. The Nifty 50 index added 26.30 points or 0.11% to 24,613.00.

The Sensex and Nifty clocked an all-time high of 80,898.3 and 24,661.25, respectively, in early afternoon trade.

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