(16-Oct-2024)Shares may start lower on negative global cues

GIFT Nifty:

The GIFT Nifty October futures contract is down 15 points, suggesting a negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,748.71 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,654.96 crore in the Indian equity market on 15 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 70303.50 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Global Markets:

Most Asian stocks declined on Wednesday, primarily due to a weak outlook from ASML, a leading chipmaker. Cooling optimism about Chinese stimulus measures also contributed to the market's downturn.

Regional markets followed Wall Street's lead, where a drop in chipmaking stocks pulled U.S. benchmarks from record highs. At the close in NYSE, the Dow Jones Industrial Average lost 0.75%, while the S&P 500 index fell 0.76%, and the NASDAQ Composite index lost 0.98%.

ASML, a major supplier of chipmaking equipment, provided disappointing sales guidance for 2025, citing softer demand in non-AI sectors. Its U.S. shares plummeted 16% overnight.

NVIDIA, a market darling, fell 4.5%, while AMD and Intel declined by 5.2% and 3.3%, respectively. All three stocks stabilized after the market closed.

Domestic Market:

Domestic equity benchmarks ended lower on Tuesday amid mixed global cues, with the Nifty50 index closing below 25,100. The market failed to hold onto the opening gains, reversing course in the early hours of trading and spending the rest of the day in negative territory. Leading the declines were shares in the auto, metal and pharma sectors. However, there were some bright spots, with shares in the realty, media and consumer durables sectors gaining ground. The S&P BSE Sensex was down 152.93 points or 0.19% to 81,820.12. The Nifty 50 index fell 70.60 points or 0.28% to 25,057.35.