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The market is expected to open higher on Friday following a rally in global markets. Stocks in the Asia-Pacific region extended their gains buoyed by soft landing hopes in the US ahead of the Bank of Japan's key interest rate decision. Wall Street stocks soared to fresh records Thursday as markets cheered the Federal Reserve's move to aggressively cut interest rates to protect the labor market. Oil prices, which were little changed in early Asian trade on Friday, were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles.

As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs.2547.53 crore and Domestic institutional investors bought shares worth net Rs.2012.86 crore on 19th September 2024.

Asian stocks were mixed on Friday, following a significant interest rate cut in the United States the previous day. The yen remained volatile ahead of a Bank of Japan monetary policy decision, as traders anticipated clues about potential tightening. Japan's consumer price index inflation rose as expected in August, reflecting increased consumption driven by higher wages. This reading came just before the Bank of Japan's meeting later that day. 

Core CPI, excluding volatile fresh food prices, increased by 2.8% year-on-year in August, reaching a 10-month high. This figure was in line with expectations and up from the 2.7% recorded in the previous month. A core reading that excludes both fresh food and energy prices, closely watched by the BOJ as a gauge of underlying inflation, rose to 2% in August from 1.9% in the prior month. Headline CPI inflation reached a 10-month high of 3% in August, up from 2.8% in the previous month. 

In China, the central bank maintained its benchmark lending rates, disappointing hopes for immediate policy support to bolster its struggling economy. 

US stocks surged to new all-time highs on Thursday, as markets welcomed the Federal Reserve's aggressive interest rate cut to protect the labor market. The S&P 500 gained 1.7%, reaching 5,713.64, while the tech-heavy Nasdaq Composite Index jumped 2.5% to 18,013.98. The Fed on Wednesday reduced its key lending rate by 0.50%, opting for a larger cut after considering a quarter-point move.

Yesterday, the domestic equity benchmarks concluded a volatile trading session with modest gains on Thursday. The market was buoyed by the US Federal Reserve's decision to cut interest rates by 50 basis points and its indication of further rate reductions. However, the substantial rate cut also sparked concerns about a potential global slowdown, leading to profit booking in mid-cap and small-cap stocks. The Nifty50 settled above the 25,400 level. Private banks and FMCG stocks were among the top performers, while media, energy, and public sector banks witnessed selling pressure. The volatility in the market was further amplified by the weekly expiry of futures and options contracts. 

The S&P BSE Sensex rose 236.57 points or 0.29% to 83,184.80. The Nifty 50 index added 38.25 points or 0.15% to 25,415.80. 

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