Nifty Likely to Open Flat; FII & DII Buying Persists as Investors Eye GDP Growth Data and Stock-Specific Moves
On Friday, May 30, Indian equity benchmarks are likely to open on a subdued note. As of 7:25 am, the GIFT Nifty was trading near the 24,944 mark, up by 5 points from the previous close.
Asian markets saw a decline in trading, contrasting with the positive close on Wall Street, where U.S. stocks ended higher overnight following an appeals court decision to restore reciprocal tariffs introduced by former President Donald Trump.
With no significant domestic developments influencing sentiment, investors are likely to keep a close watch on global market trends and the performance of major banking and financial stocks to gauge future direction. All eyes of investors will be on the GDP growth data of India, which is to be announced today.
With a muted start, the domestic market is likely to witness stock-specific action as Q4 earnings unfold. Several prominent Indian companies are set to announce their fourth-quarter results on Friday.
Bajaj Holdings & Investment, Apollo Hospitals Enterprises, Vodafone Idea, FSN E-Commerce Ventures Nykaa, Sun TV Network, Inox Wind, PTC Industries, AstraZeneca Pharma, Inox Wind Energy, Swan Energy, Ingersoll Rand (India) and Titagarh Rail Systems are scheduled to announce their Q4 earnings today.
On May 29, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹884.03 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹4,286.50 crore during the same session.
FIIs have been net buyers for the last five trading sessions, while DIIs have emerged as net buyers over the past eight trading sessions.
On Thursday, Indian equity markets closed in positive territory, supported by late-session buying in key blue-chip stocks. The Sensex rose by 320.70 points (0.39%) to end at 81,633.02, while the Nifty 50 advanced 81.15 points (0.33%) to settle at 24,833.60.
Asian markets traded lower on Friday as sentiment weakened amid uncertainties over the judicial developments surrounding U.S. President Donald Trump’s “reciprocal” tariffs.
Japan's latest economic indicators showed a mixed trend for April. Industrial production dipped by 0.9% compared to the previous month. According to a survey conducted by the Ministry of Economy, Trade and Industry, manufacturers anticipate a 9.0% rebound in factory output for May, followed by a 3.4% decrease in June. On the consumer front, retail sales in April were up 3.3% year-on-year, slightly surpassing the expected 3.1% growth. Meanwhile, the unemployment rate held steady at 2.5%, aligning with market expectations.
U.S. markets closed on a positive note Thursday as investors assessed the impact of a court decision that brought back key tariffs introduced during Donald Trump's presidency. The Dow Jones Industrial Average advanced by 117.03 points (0.28%) to settle at 42,215.73. The S&P 500 moved up 23.62 points, or 0.40%, ending at 5,912.17, while the Nasdaq Composite gained 74.93 points, or 0.39%, finishing at 19,175.87.
A federal appeals court has temporarily restored the broadest set of tariffs introduced by former President Donald Trump. The U.S. Court of Appeals for the Federal Circuit, based in Washington, decided to halt a lower court’s decision while it reviews the government's appeal.
The U.S. economy shrank slightly in the first quarter of this year, but the contraction was less severe than previously projected. From January to March, the GDP declined at an annualised rate of 0.2%, a small improvement compared to the earlier estimate of a 0.3% drop. Despite being a modest revision, it marks the first economic contraction since 2022 and a notable reversal from the 2.4% growth recorded in the last quarter of 2024.
WTI crude oil futures fell toward $60.9 per barrel while Brent crude oil futures fell toward $63.3 per barrel and were on track for a second straight weekly decline, as traders weighed mixed signals ahead of the OPEC+ meeting on Saturday.
Gold edges lower in the early Asian session on possible position adjustment. However, the gold price may be supported by weak U.S. economic data released overnight. Both initial claims and continuing claims suggest a potential weakening in the labor market. Also, confirmation of a contraction in GDP for 1Q, albeit with a slight upward revision, solidified perceptions of an economic slowdown. Spot gold slipped by 0.23% to $3,309 per ounce.
Disclaimer: The article is for informational purposes only and not investment advice.
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