The Indian equity benchmark indices, BSE Sensex and Nifty50, began the trading week in the red.
Key Market Highlights:
- Opening Performance:
- Sensex: Opened over 100 points lower and was trading at 81,644.04, down by 65 points (0.08%) at 9:16 AM.
- Nifty50: Slightly dipped to 24,667.35, down 10 points (0.042%).
- Investor Activity:
- Foreign Portfolio Investors (FPI): Net sellers, with an outflow of Rs 1,830 crore on Friday.
- Domestic Institutional Investors (DII): Net buyers, acquiring shares worth Rs 1,659 crore.
- Broader Market Sentiment:
- Global Cues:
- Asian markets dropped, led by South Korea, as investors await central bank meetings likely to result in interest rate cuts.
- US inflation data remains pivotal for monetary policy adjustments.
- Commodities:
- Oil traded mixed due to concerns over Chinese demand and geopolitical tensions in the Middle East.
- Global Cues:
Expert Insights:
- Short-Term Outlook: Buying during dips is recommended, with projections suggesting Nifty50 could reach 25,500 in the near term.
- Market Dynamics: Brief corrections after strong advances provide strategic buying opportunities for long-term investors.
Upcoming Economic Data:
This week, significant global economic indicators will shape market trends, including:
- GDP Reports: US, Japan, UK.
- Inflation Data: China’s CPI and PPI, India’s CPI.
Currency Market:
- The Canadian and Australian dollars drew attention ahead of central bank meetings. The US dollar remains stable as traders analyze future policy trajectories.
Derivative Markets:
- FII net short positions reduced from Rs 45,397 crore on Thursday to Rs 39,441 crore on Friday, indicating cautious optimism among foreign investors.
Investors should keep a close watch on global macroeconomic data and central bank policy announcements to navigate this volatile trading environment.
