POSITIVE GLOBAL SIGNALS MAY SUPPORT INDIAN SHARES

GIFT Nifty:

The GIFT Nifty October futures contract is down 13 points, suggesting a negative start for the Nifty 50.

The Union Cabinet has approved an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1 July 2024 representing an increase of 3% over the existing rate of 50% of the basic pay/pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,435.94 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,256.29 crore in the Indian equity market on 16 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 71906.71 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Asian stocks climbed on Thursday, buoyed by anticipation of government stimulus measures for China`s property sector and strong earnings prospects for tech companies. Chinese shares were particularly upbeat ahead of a government briefing detailing support plans for the struggling real estate market. This briefing is part of a series of government initiatives aimed at bolstering the economy.

Asian markets received a positive boost from Wall Street`s performance, where tech stocks and strong earnings contributed to gains on Wednesday. Investors are now focused on upcoming earnings reports and economic data. At the close in NYSE, the Dow Jones Industrial Average gained 0.79% to hit a new all time high, while the S&P 500 index added 0.47%, and the NASDAQ Composite index gained 0.28%.

On Thursday, investors will be watching U.S. retail sales and industrial production data for insights into the economy`s health. As expectations for a slower pace of interest rate cuts by the Federal Reserve grow, these economic indicators will be closely monitored.

Domestic Market:

Domestic equity benchmark indices continued their downward trend on Wednesday, closing lower for the second consecutive session. The Nifty 50 index settled below the 25,000 mark, primarily weighed down by losses in the auto and IT shares. However, realty, energy, and financial services stocks advanced. The S&P BSE Sensex declined 318.76 points or 0.39% to 81,501.36. The Nifty 50 index lost 86.05 points or 0.34% to 24,971.30.

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