Market Commentary - Pre-Session
Market may extend losses amid mixed global signals As on : 14-Nov-24  08:25

GIFT Nifty:

The GIFT Nifty November futures contract is trading 44 points lower, suggesting a negative opening for the Nifty 50.

The National Stock Exchange (NSE) is set to add 45 new stocks to its futures and options (F&O) segment, effective November 29th. This expansion includes prominent names such as Zomato, DMart, and Jio Financial. Other notable additions to the F&O segment are: Adani Energy, Adani Green Energy, and Adani Total Gas, Bank of India, BSE, CDSL, LIC, Paytm, PB Fintech, and YES Bank, Cyient, KPIT Technologies, Tata Elxsi, Angel One, Delhivery, Hudco, Nykaa, Oil India, Tube Investments, JSW Energy, and Jindal Stainless.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,502.58 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,145.24 crore in the Indian equity market on 13 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 29772.61 crore (so far) in the secondary market during November 2024. This follows their sale of shares worth Rs 1,13,858.81 crore in October 2024.

Global Markets:

Asian stocks declined on Thursday, extending a recent downward trend. Investors remain cautious as US inflation data pointed to persistent price pressures, raising doubts about the likelihood of future interest rate cuts. Meanwhile, hopes for additional stimulus measures in China have yet to materialize.

The initial post-election rally in US equities appears to be waning. On Wednesday, the Dow Jones Industrial Average added 0.11%, while the S&P 500 index climbed 0.02%, and the NASDAQ Composite index lost 0.23%.

US consumer price index (CPI) data for October came in line with expectations, but still indicated persistent inflationary pressures. The annual CPI rose to 2.6% from 2.4% in September. Core CPI, which excludes volatile food and energy prices, increased to 3.3% year-over-year.

While these figures still support the case for a December rate cut by the Federal Reserve, the longer-term outlook for interest rates remains uncertain, especially given the potential inflationary impact of Trump's policies.

Investors are now awaiting a speech by Fed Chair Jerome Powell for further guidance on monetary policy. The Fed cut rates by 25 basis points last week and reaffirmed its data-dependent approach to future easing.

Domestic Market:

The domestic equity benchmarks extended their losing streak on Wednesday, with the Nifty 50 index slipping into correction territory. This marks the fifth consecutive day of decline, pushing the Nifty over 10% below its all-time high of 26,277.35, achieved in September. Realty, PSU banks and metal shares tumbled. However, FMCG, and IT shares bucked the trend. The S&P BSE Sensex tumbled 984.23 points or 1.25% to 77,690.95. The Nifty 50 index declined 324.40 points or 1.36% to 23,559.60. The 50-unit index has fallen 3.78% in five sessions.

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