GIFT Nifty:
The GIFT Nifty January 2025 futures contract is currently down 140 points, indicating a weak start for the Nifty 50.
Institutional Flows:
Foreign portfolio investors (FPIs) sold shares worth Rs 2,758.49 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,402.31 crore in the Indian equity market on 24 January 2025, provisional data showed.
According to NSDL data, FPIs have sold shares worth Rs 66602 crore (so far) in the secondary market during January 2025. This follows their sale of shares worth Rs 2589.63 crore in December 2024.
Global Markets:
The US Dow Jones index futures were currently down by 192 points, signaling a weak opening for US stocks today.
Most Asian stocks rose on Monday, though investor sentiment remained cautious following former President Donald Trump’s decision to impose tariffs and sanctions on Colombia for hindering U.S. immigration policies. The dollar also edged higher as markets awaited the Federal Reserve’s interest rate decision and key inflation data later this week. Trading in Asia may see heightened volatility as major markets prepare to shut mid-week for the Lunar New Year holiday.
On Sunday, Trump announced sanctions and steep tariffs on Colombia after its President, Gustavo Petro, refused to allow U.S. repatriation flights carrying deported individuals to land. Trump declared an immediate 25% tariff on all Colombian imports, escalating to 50% next week. Additionally, the U.S. imposed a travel ban and revoked visas for Colombian officials and affiliates. Trump also hinted at potential tariffs on Mexico, Canada, China, and the European Union by February 1.
U.S. stocks ended lower on Friday as investors digested mixed economic data and corporate earnings. The Dow Jones Industrial Average slipped 0.32%, the S&P 500 closed flat, and the Nasdaq Composite dropped 0.5%.
Tech earnings remain critical for global equities, with particular focus on artificial intelligence (AI). China's AI startup DeepSeek has unveiled its latest model, R1, rivaling leading U.S. systems like OpenAI’s ChatGPT at a fraction of the cost. This development challenges industry giants like NVIDIA, which saw its stock decline in response.
The Federal Reserve is widely expected to hold interest rates steady at the conclusion of its two-day meeting on Wednesday, pausing the rate-cutting cycle initiated in September. Key data points this week include the Fed’s preferred inflation gauge—the Personal Consumption Expenditures (PCE) Price Index—and fourth-quarter GDP estimates. Weekly jobless claims for December and January’s consumer confidence figures are also on the radar.
Domestic Market:
The domestic equity benchmarks ended lower on Friday, snapping a two-day winning streak. Selling pressure from foreign institutional investors (FIIs) and a strengthening US dollar weighed on investor sentiment. Further, mixed Q3 earnings results added to the market's weakness. The Nifty 50 index closed below the 23,100 mark, after hitting an intraday high of 23,347.30 in early afternoon trade. FMCG and IT shares witnessed gains. Oil & gas stocks were among the notable losers.
The S&P BSE Sensex declined 329.92 points or 0.43% to 76,190.46. The Nifty 50 index lost 113.15 points or 0.49% to 23,092.20. In two consecutive trading sessions, the Sensex and Nifty rose by 0.78% and 0.89%, respectively.