Market Commentary - Pre-Session
18-Jun-2025 08:24
GIFT Nifty set for muted start as investors await US Federal Reserve policy decision
GIFT Nifty:
GIFT Nifty June 2025 futures were trading 20.5 points lower in early trade, suggesting a muted start to equities on the Dalal Street today.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth 1,482.80 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 8,207.19 crore in the Indian capital market segment on 17 June 2025, provisional data showed.
According to public data, FPIs have sold shares worth Rs 5,869.04 crore in the secondary market during June 2025. This follows their purchase of shares worth Rs 11,773.25 crore in May 2024.
Global Markets:
US Dow Jones futures were down 219 points, signaling a weak start for Wall Street.
Markets in Asia traded in a mixed fashion on Wednesday, as escalating tensions between Israel and Iran weigh on investor sentiment.
Adding fuel to fire, U.S. President Donald Trump is mulling a military strike on Iran, while demanding the country's leader Ayatollah Ali Khamenei 'surrender,' media reports stated.
Japan exports in May declined 1.7% year on year, which is lower than the decline of 3.8% that was widely anticipated by the markets.
The data comes a day after the Bank of Japan highlighted in its monetary policy statement that the country's growth was likely to 'moderate' on the back of factors like trade, which would lead to a slowdown in overseas economies and a decline in domestic corporate profits.
On the Wall Street, all three major averages ended the trading day lower. The Dow Jones Industrial Average lost 299.29 points, or 0.70%, to close at 42,215.80. The S&P 500 shed 0.84% to end at 5,982.72, while the Nasdaq Composite fell 0.91% and settled at 19,521.09.
The key indices ended lower ahead of the US Federal Reserve's rate decision, which is due Wednesday afternoon. The U.S. central bank is widely expected to hold rates steady, but investors will be keeping a close eye on Fed Chair Jerome Powell's post-meeting comments.
Traders are also watching for policymakers' forecast on rate policy, as the Federal Open Market Committee will be sharing members' 'dot plot' of rate expectations.
Domestic Market:
Domestic equity benchmarks slipped into the red on Tuesday, dragged down by rising tensions between Israel and Iran. Investor sentiment remained subdued ahead of the U.S. Federal Reserve's policy decision. A spike in crude oil prices and persistent FII outflows further dampened mood on Dalal Street. The Nifty closed below the 24,900 mark.
The S&P BSE Sensex declined 212.85 points or 0.26% to 81,583.30. The Nifty 50 index fell 93.10 points or 0.37% to 24,853.40. The S&P BSE Mid-Cap index shed 0.56% and the S&P BSE Small-Cap index fell 0.67%.
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