(20-May-2025)A cloudy start for GIFT Nifty, but Asian breezes may lift the spirits

GIFT Nifty:

GIFT Nifty May 2025 futures were trading 26.50 points lower in early trade, suggesting a negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth 525.95 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 237.93 crore in the Indian equity market on 19 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 25156 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.

Global Markets:

Asian shares advanced on Tuesday as investors awaited the Reserve Bank of Australia's monetary policy decision and digested fresh economic measures from China.

The People's Bank of China reduced its key lending rates by 10 basis points in an effort to support economic growth amid ongoing trade tensions. The 1-year loan prime rate was lowered from 3.1% to 3.0%, while the 5-year LPR, commonly used for mortgage pricing, was cut from 3.6% to 3.5%.

In equity markets, shares of Contemporary Amperex Technology, the world's largest battery manufacturer, rose over 11% during their trading debut in Hong Kong.

Meanwhile, U.S. markets closed higher overnight. The S&P 500 gained 0.09%, extending its winning streak to six sessions as Treasury yields eased and investors looked past Moody's recent downgrade of the U.S. credit outlook.

The Dow Jones Industrial Average rose 0.32%, supported by an 8% rebound in UnitedHealth following recent losses. The Nasdaq Composite edged up 0.02%.

Domestic Market:

Equity benchmarks ended slightly in the red today, logging a second straight day of losses as investor sentiment remained fragile. Moody's downgrade of the U.S. credit outlook, coupled with mixed economic cues from China, kept the markets on edge. A spike in U.S. Treasury yields further unnerved investors. Rising yields often signal growing concerns over debt sustainability. The Nifty closed below the 24,950 mark, weighed down primarily by IT stocks, which took a hit in the wake of the U.S. rating downgrade. The S&P BSE Sensex declined 271.17 points or 0.33% to 82,059.42. The Nifty 50 index fell 74.35 points or 0.30% to 24,945.45. In the past two trading session Sensex and Nifty declined 0.57% and 0.47%.