Indices may drop at opening bell, Adani Group stocks in focus

GIFT Nifty:

The GIFT Nifty December futures contract is trading 154 points lower, suggesting a weak opening for the Nifty 50.

Shares of Adani Group companies will be watched. Indian billionaire Gautam Adani and his associates have been indicted by U.S. prosecutors for a massive bribery scheme. They allegedly bribed Indian officials more than $250 million to secure billions of dollars worth of solar energy contracts for Adani Green Energy. The indictment further accuses them of misleading U.S. and international investors about the bribery scheme during a 2021 bond offering. The U.S. Attorney's Office for the Eastern District of New York has charged them with wire and securities fraud.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,411.73 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,783.89 crore in the Indian equity market on 19 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 35867.85 crore (so far) in the secondary market during November 2024. This follows their sale of shares worth Rs 1,13,858.81 crore in October 2024.

Global Markets:

Asian markets declined on Thursday, dampened by mixed signals from Nvidia's earnings report and heightened geopolitical tensions. Investors remained cautious, with concerns over Russia-Ukraine conflict weighing on sentiment.

U.S. stocks closed mixed on Wednesday, with Target's disappointing earnings and Nvidia's tempered guidance impacting investor sentiment. While the Dow Jones Industrial Average gained 0.32%, the S&P 500 index ended flat%, and the NASDAQ Composite index fell 0.11%.

Investors were rattled by a nearly 22% slide in Target after the retailer missed expectations for its September quarter earnings. Target steadied in evening trade, although its earnings also raised some questions over weakening retail spending.

Nvidia shares fell more than 1% in aftermarket trade to around $144.0, trimming some losses after falling as much as 2% just after its earnings. Earnings per share rose to $0.81 on revenue of $35.1 billion, higher than expectations of $0.75 in EPS and $33.09 billion in revenue.

Nvidia's quarterly results, while exceeding expectations, fell short of some analysts' hopes for a more significant beat. The company's guidance for the fourth quarter, though slightly above estimates, hinted at a slower pace of revenue growth, raising questions about the sustainability of AI-driven demand. This cautious outlook tempered investor enthusiasm and contributed to the broader market's subdued performance.

Market participants are now focused on a series of U.S. economic indicators, including jobless claims, home sales data, and the Purchasing Managers' Index (PMI). Additionally, several Federal Reserve officials are scheduled to speak, providing insights into the central bank's monetary policy outlook.

Domestic Market:

The domestic equity benchmarks staged a strong rebound on Tuesday, ending a seven-day losing streak. The Nifty 50 index closed above the 23,500 level, driven by buying interest in auto, realty, and media stocks. The recent sharp decline in the benchmarks had created oversold conditions, making them attractive to bargain hunters. Additionally, a slowdown in FII selling and consistent buying by domestic institutions further bolstered sentiment. Positive cues from other Asian markets also supported buying.

The barometer index, the S&P BSE Sensex rose 239.37 points or 0.31% to 77,578.38. The Nifty 50 index added 64.70 points or 0.28% to 23,518.50. The 50-unit index dropped 4.21% in past seven consecutive trading sessions.