Equity Analysis

Pre-Session - Detailed News
Indices may open higher
12-Nov-24   08:28 Hrs IST

GIFT Nifty:

The GIFT Nifty November futures contract is trading 19 points higher, suggesting a positive opening for the Nifty 50.

The Reserve Bank of India (RBI) has simplified the process for foreign portfolio investors (FPIs) to convert their investments into foreign direct investment (FDI) when they exceed the 10% ownership limit in an Indian company. This move provides a clear pathway for FPIs to retain their investment in India, subject to government and company approvals, instead of being forced to sell excess shares.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,306.88 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,026.63 crore in the Indian equity market on 11 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 25564.96 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:

Most Asian stocks declined on Tuesday as China's much-anticipated economic stimulus package fell short of expectations. Investors were also closely monitoring developments in the U.S. following the recent election.

Last week, markets rallied on hopes that a new administration would implement business-friendly policies. However, Beijing's stimulus plan, which focused primarily on debt relief for local governments, failed to inspire confidence.

Concerns about potential trade tensions between the U.S. and China, particularly regarding tariffs on Chinese goods, contributed to the market's downturn.

The US stock market closed on a high note on Monday, with all major indexes hitting record highs. The Dow Jones Industrial Average surpassed the 44,000 mark for the first time, gaining 0.69% to 44,293.13. The S&P 500 and Nasdaq also rose, up 0.10% to 6,001.35 and 0.06% to 19,298.76, respectively.

Tesla's stock surged 9%, boosting its market value to over $1.1 trillion. Microsoft, Amazon, and Meta Platforms saw slight declines of around 1% each. Nvidia's stock fell 1.6%. Bitcoin miners MARA Holdings and Riot Platforms stocks rallied 30% and 17%, respectively.

While the market has been on a strong upward trend, investors are becoming cautious ahead of the release of key consumer price index (CPI) inflation data on Wednesday.

Domestic Market:

The domestic equity benchmarks ended almost flat with negative bias on Monday, marking a third consecutive day of losses. While IT and banking stocks provided some support, weakness in auutos, metals and FMCG dragged the indices down. The Nifty 50 index, after reaching an intraday high of 24,336.80, settled below the 24,150 mark. The index opened lower but bounced from the 24,000 level. However, the recovery was short-lived, as selling pressure emerged in the afternoon session. The S&P BSE Sensex, was up 9.83 points or 0.01% to 79,496.15. The Nifty 50 index shed 6.90 points or 0.03% to 24,141.30.

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