IGI Logo

The market is expected to remain volatile today ahead of monthly futures & options (F&O) expiry, amid a mixed trend in the global markets. Asian stocks bucked the global trend to extend a rally on Thursday, fuelled by persistent optimism over China's aggressive stimulus package, although there were signs some of that enthusiasm was starting to ebb. US stock indices were mixed on Tuesday after weak consumer confidence report, while commodity shares rallied after China unveiled a bumper stimulus package. Oil prices were little changed on Thursday after falling in the previous session as signs of higher fuel demand and falling stockpiles in the U.S., the world's biggest oil user, offset concerns over demand elsewhere, particularly in China. 

As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs.973.94 crore and Domestic institutional investors bought shares worth net Rs.1778.99 crore on 25th September 2024.

Dow Jones Futures were up 69 points, indicating a positive opening in the US stock market today. Asian markets experienced an uptick on Thursday, driven by continued optimism surrounding China's recent stimulus measures and a robust rally in technology stocks, particularly semiconductor manufacturers. The latter was fueled by strong earnings from U.S. chipmaker Micron. 

Chinese markets have been on a roll this week following Beijing's announcement of a series of stimulus measures, including a reduction in bank reserve requirements and lower mortgage rates. These measures have sparked a wave of bargain buying, as Chinese markets had been lagging behind global peers for some time due to concerns about a slowing economy. 

U.S. stocks experienced a pullback on Wednesday, with the three major indices closing mixed as investors weighed the health of the economy and the likelihood of further interest rate cuts. The Dow Jones Industrial Average declined by around 0.7%, while the S&P 500 fell 0.19% and Nasdaq Composite (+0.04%) saw more modest gains. 

On the economic data front, new home sales in the United States decreased in August compared to the previous month, primarily due to high mortgage rates and elevated prices deterring potential buyers. However, mortgage applications rose to their highest level since 2022, driven by homeowners seeking to refinance their loans as interest rates decline. 

This week's market focus is on Federal Reserve Chair Jerome Powell's upcoming speech and the release of the PCE price index, the Fed's preferred inflation gauge.

Above views are of the author and not of the website kindly read disclaimer