Indices set for positive start on global tailwinds

GIFT Nifty:

GIFT Nifty May 2025 futures were trading 12 points higher in early trade, indicating a positive start for the Nifty 50.

Trading is expected to remain volatile today due to the monthly expiry of Nifty futures and options contracts.

Investors will also closely watch the market's response to India's latest diplomatic and economic measures against Pakistan, announced following Tuesday's terrorist attack in Pahalgam in Jammu & Kashmir, which claimed 26 lives. These measures include the suspension of the Indus Waters Treaty, shutting down the Wagah-Attari border, cancelling visas for Pakistanis, along with other measures,

On the macroeconomic front, the World Bank on Wednesday revised its growth outlook for India, trimming its forecast by 0.4 percentage points to 6.3% for the current fiscal year. The revision reflects rising global uncertainty, which the institution warned could dampen growth prospects across South Asia.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 3,332.93 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,234.46 crore in the Indian equity market on 23 April 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 16022.91 crore in the secondary market during April 2025 (so far). This follows their sale of shares worth Rs 6027.77 crore in March 2024.

Global Markets:

Asian stocks were mixed on Thursday, following gains on Wall Street driven by renewed optimism over potential progress in U.S.-China trade relations.

In the latest development, China indicated a willingness to engage in trade talks with the United States. However, it emphasized that it would not participate in negotiations under continued threat of sanctions or tariffs from the U.S. administration. This dual stance contributed to cautious optimism among global investors.

In South Korea, advance estimates released Thursday showed that GDP contracted by 0.1% in the first quarter of 2025, signaling potential economic headwinds in the region.

On Wall Street, the three major indices closed higher overnight, supported by hopes that trade tensions may ease in the near term. Additionally, President Donald Trump signaled that he does not intend to remove Federal Reserve Chair Jerome Powell, a move that appeared to reassure financial markets.

At the close in NYSE, the Dow Jones Industrial Average rose 1.07%, while the S&P 500 index gained 1.67%, and the NASDAQ Composite index added 2.50%.

On Thursday, investors will look for quarterly earnings reports from Alphabet, Intel and PepsiCo. On the economic data front, durable gods orders and weekly jobless claims are also due.

Domestic Market:

The domestic equity benchmarks put on another solid show today, clocking in their seventh straight day of gains, riding the wave of buoyant global sentiment. The mood turned sunnier after U.S. President Donald Trump indicated he had no plans to dismiss the Federal Reserve Chair, while also dropping hints about possible tariff relief for China. The Nifty breezed past the 24,300 mark, rebounding nicely after dipping to 24,119.95 earlier in the day. Leading the charge were IT, auto, and pharma stocks, while consumer durables and banks stocks hit the pause button after their recent run-up.

The S&P BSE Sensex advanced 520.90 points or 0.65% to 80,116.49. The Nifty 50 index rose 161.70 points or 0.67% to 24,328.95. In the seven trading sessions, Sensex and Nifty jumped 8.49% and 8.62%, respectively.

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