Market Commentary - Pre-Session
18-Sep-2024 08:27
Shares likely to open higher on positive Asian cues
GIFT Nifty:
The GIFT Nifty September futures contract is up 44.50 points, suggesting a positive start for the Nifty 50.
Foreign portfolio investors (FPIs) bought shares worth Rs 482.69 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 874.15 crore in the Indian equity market on 17 September 2024, provisional data showed.
FPIs have bought shares worth over Rs 16477.84 crore in September 2024 (so far). They sold shares worth 21,368.51 crore in August 2024.
Global Markets:
Most Asian shares were trading higher on Wednesday as investors eagerly awaited the Federal Reserve's interest rate decision. Despite muted trading volumes due to holidays in Hong Kong and South Korea, most regional stocks rose.
While Chinese markets remained relatively stable after resuming trading from an extended break, investors also looked ahead to the Bank of Japan's policy meeting later in the week. The BoJ is expected to maintain current interest rates but may adopt a more hawkish stance, signaling potential future rate hikes.
In the United States, stock markets closed mixed on Tuesday as uncertainty persisted regarding the magnitude of the Federal Reserve's anticipated rate cut. The Dow Jones Industrial Average fell 0.04% while the S&P 500 rose 0.3%, reversing momentum from earlier in the day, when they were at or near record levels. The Nasdaq Composite, meanwhile, finished higher by 0.2%.
Market participants are widely expecting the Fed to reduce interest rates, with opinions divided between a 25 or 50 basis point cut. However, bets on a larger 50 basis point reduction have been gaining momentum. Additionally, the Fed's announcement is anticipated to signal the beginning of an easing cycle, which is generally positive for risk-oriented stock markets.
Domestic Market:
Domestic equity indices closed with modest gains on Tuesday, driven by anticipation of an upcoming interest rate cut by the Federal Reserve. The Nifty 50 settled above the 25,400 level, despite hitting a low of 25,352.25 earlier in the day. Sectors such as realty, consumer durables, and auto witnessed a rise, while media, PSU banks, and metal shares faced pressure. The S&P BSE Sensex, was up 90.88 points or 0.11% to 83,079.66. The Nifty 50 index rose 34.80 points or 0.14% to 25,418.55. Both the indices attained record closing high levels.
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