SSPL WEALTH PVT LTD

Pre - Session

Preview on the major events which influences the market on that day.

GIFT Nifty futures down, RBI policy decision awaited

06-Dec-24 08:36 Hrs IST

GIFT Nifty:

The GIFT Nifty December futures contract is currently trading 34 points lower, suggesting a negative opening for the Nifty 50.

The Reserve Bank of India's Monetary Policy Committee (MPC) will conclude its three-day meeting today, December 6th, 2024. The outcome of the meeting, including any decisions on interest rates and monetary policy, will be announced by RBI Governor Shaktikanta Das by 10 AM.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 8,539.91 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,303.64 crore in the Indian equity market on 5 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 8500.07 crore (so far) in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.

Global Markets:

Asian shares were mixed on Friday. All eyes are on the U.S. nonfarm payrolls report due in the day that may help shape the direction of the Federal Reserve's policy path later this month.

In Asia, key economic data releases include India's interest rate decision and Malaysia's foreign reserves. China's November foreign reserves data may also be released today.

US stock markets pulled back from record highs on Thursday as investors took a cautious approach ahead of the payrolls report. The S&P 500 declined 0.2%, the NASDAQ Composite fell 0.2%, and the Dow Jones Industrial Average dropped 0.6%. Technology stocks, a major driver of recent market gains, retreated, while economically sensitive sectors like energy, financials, and industrials also lost ground.

US initial jobless claims rose to 224,000 for the week ended November 30th, up from the previous week's revised figure of 215,000.

The upcoming US nonfarm payrolls report will be closely watched by investors and policymakers alike. A strong reading could reinforce expectations of economic recovery and support further normalization of monetary policy.

Meanwhile Bitcoin tumbled from record highs above the coveted $100,000 level, as it was slapped with heavy profit-taking.

Domestic Market:

The domestic equity benchmarks advanced for the fifth consecutive session on Thursday, with the Sensex and Nifty closing at near two-month highs. IT and energy shares were in demand. The rally was fueled by expectations of a potential rate cut by the Reserve Bank of India (RBI) and liquidity measures to bolster economic growth.

The S&P BSE Sensex surged 809.53 points or 1% to 81,765.86. The Nifty 50 index jumped 240.95 points or 0.98% to 24,708.40. The 50-unit index has risen 3.32% in five sessions.