Indian equity markets may start the day on a positive note today

3 May 2024 , 08:02 AM

Indian stock markets may start the day on a positive note today.

After a session of consolidating losses, the Indian markets closed higher on May 2, with the Nifty settling around 22,650. This positive momentum comes as market participants digest the recent comments from the Federal Reserve Chair regarding interest rate hikes, following the unchanged key interest rates decision on May 1.

International Markets:

Moreover, in the global arena, Asian markets are on an upward trajectory, taking cues from the gains witnessed on Wall Street. With key U.S. employment data on the horizon, investor optimism is palpable. South Korea’s Kospi recorded a rise of 0.60%, accompanied by a 0.77% increase in the smaller-cap Kosdaq. While markets in Japan and mainland China remained closed for public holidays, the overall sentiment remains positive.

In the United States, Thursday saw a rally in stocks as investors weighed the Federal Reserve’s dovish stance on interest rates against a backdrop of mixed earnings and economic data. The Dow Jones Industrial Average surged by 322.37 points, or 0.85%, reaching 38,225.66. Similarly, the S&P 500 advanced by 45.81 points, or 0.91%, closing at 5,064.2, while the Nasdaq Composite added 235.48 points, or 1.51%, closing at 15,840.96.

FII and DII Data:

Provisional data from the NSE reveals contrasting investor activities on May 2, with foreign institutional investors (FIIs) net selling ₹964.47 Crore shares, while domestic institutional investors (DIIs) injected ₹1,352.44 Crore into the market. This data underscores the dynamic nature of market participation and highlights the importance of staying informed amid evolving trends.