NIFTY PREPARES FOR DIP, BUT GLOBAL TAILWINDS MAY OFFER LIFT

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 11.50 points at the opening bell.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,569.40 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,555.73 crore in the Indian equity market on 18 June 2024, provisional data showed.

FPIs have sold shares worth over Rs 9118.18 crore in June 2024 (so far). They offloaded shares worth 42214.28 crore in May 2024.

Economy:

India`s direct tax collection has grown significantly in the current financial year compared to the same period last year. Gross collections (before refunds) are up 22.19%, reaching over Rs 5.15 lakh crore by mid-June, while net collections (after refunds) have grown by around 21% to over Rs 4.62 lakh crore. This growth is partly due to a 27.34% increase in advance tax collection. The government has also issued more refunds this year, with Rs 53,322 crore paid out by mid-June, a 33.7% increase.

Global Markets:

Asian stocks surged to a three-week peak on Wednesday, fueled by a tech rally. Disappointing U.S. retail sales data bolstered expectations of an interest rate cut by the Federal Reserve later this year.

The S&P 500 and Nasdaq hit record highs in the US on Tuesday, with Nvidia surpassing Microsoft to become the world`s most valuable company.

U.S. retail sales data released Tuesday showed minimal growth in May, with prior month figures revised downward. This suggests sluggish economic activity in Q2, prompting investors to anticipate a Fed rate cut in September. CME FedWatch data indicates a 67% chance of easing, up from 61% the day before.

The U.S. stock market will be closed on Wednesday, June 19th, for Juneteenth.

Domestic Markets:

Domestic stocks extended their gains for a fourth straight session, with the Nifty 50 closing above the 23,550 mark. Positive vibes from a stable government and a strong global market fueled the rally. Realty and bank shares surged, while healthcare took a breather. Analysts see the positive momentum continuing, with mid-cap and small-cap stocks potentially leading the charge. All eyes are now on the government`s union budget for the next big market move. In the barometer index, the S&P BSE Sensex was up 308.37 points or 0.40% to 77,301.14. The Nifty 50 added 92.30 points or 0.39% to 23,557.90.

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