Indices may extend losses amid FII exodus

GIFT Nifty:

The GIFT Nifty October futures contract is down 40 points, suggesting a negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,978.61 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,869.06 crore in the Indian equity market on 22 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 89,255.98 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:

The Dow Jones index futures were down 130 points, indicating a weak opening in the US stocks today.

Most Asian stocks advanced on Wednesday. However gains were capped as rising U.S. Treasury yields and the looming presidential election continued to weigh on investor sentiment.

Hong Kong's stock market led the region, buoyed by a strong debut from China Resources Beverage. Chinese equities also extended their recent rally following Beijing's stimulus measures, including a surprise interest rate cut by the People's Bank of China on Monday.

US stocks saw a flat overnight session. Mixed corporate earnings and the ongoing uncertainty surrounding the U.S. presidential election contributed to the cautious mood. At the close in NYSE, the Dow Jones Industrial Average declined 0.02%, while the S&P 500 index declined 0.05%, and the NASDAQ Composite index added 0.18%.

General Motors stock rose 10% after the company reported stronger-than-expected third-quarter earnings, driven by robust revenue growth and improved profitability.

Verizon stock fell 5% after the telecom giant reported mixed third-quarter results, with earnings slightly beating expectations but revenue falling short.

Domestic Market:

The domestic equity benchmarks suffered a sharp decline on Tuesday, extending the previous day's losses. The broader market slumped due to weak global cues and poor sectoral performance. The Nifty50 settled below the 24,500 mark amid widespread selling pressure, with PSU banks and metal shares witnessing major selling. Technical indicators suggest a bearish trend, with the Nifty breaking below its 20-week average. The barometer index, the S&P BSE Sensex declined 930.55 points or 1.15% to 80,220.72. The Nifty 50 index declined 309 points or 1.25% to 24,472.10.