GIFT Nifty:

The GIFT Nifty October futures contract is down 41 points, suggesting a negative start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 7,421.40 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,979.83 crore in the Indian equity market on 17 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 75704.26 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:

Most Asian stocks rose on Friday, as investors assessed key economic data from China and Japan’s inflation numbers.

Chinese GDP grew 4.6% year-on-year in the three months to September 30, but slowing from the 4.7% seen in the prior quarter. GDP grew 0.9% quarter-on-quarter, slightly missing expectations of 1%. This brought year-to-date GDP growth to 4.8%, still below Beijing’s 5% annual target.

Separate data on Friday showed China’s industrial production and retail sales both grew more than expected in September, while the country’s unemployment rate fell to 5.1% against expectations it would remain at 5.3%. Meanwhile, China’s house prices fell 5.8% year-over-year in September, a larger drop than 5.3% in August.

Japan's Core CPI, which excludes volatile fresh food items, grew 2.4% year-on-year in September, government data showed on Friday. The reading eased from the 2.8%- a 10-month high- seen in the prior month. A core reading that excludes both fresh food and energy prices, and is watched closely by the Bank of Japan as a gauge of underlying inflation, rose to 2.1% in September from 2% in the prior month. Headline CPI inflation fell to 2.5% from 3% in the prior month.

In the US market, the Dow Jones Industrial Average rallied to a new record close after strong economic data eased lingering fears of a potential recession. The blue-chip index rose 0.37% to 43,239.05, helped by a 9% gain for Travelers on the back of strong quarterly results. The Nasdaq Composite inched higher on Thursday after getting a boost from semiconductor names, and ultimately added 0.04%. The S&P 500 closed down 0.02%.

The technology sector, particularly chip stocks, led the market's rally, with companies like Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) posting significant gains. Positive US retail sales figures and lower-than-expected jobless claims further supported market sentiment.

September’s US retail sales figures showed that consumer spending was still robust, with monthly spending rising 0.4%. Sales excluding autos shot up 0.5%, much hotter than the 0.1% forecast. Jobless claims in the US for the week that ended Oct. 12 were also lower than expected.

Domestic Market:

The domestic equity indices extended their losing streak for the third consecutive session on Thursday, with major indices closing significantly lower despite a promising start to trading. The Nifty50 index, which opened strong above the 25,000 mark, quickly reversed course in early trading hours. The benchmark eventually closed below 24,750 points. Sector-wise, realty, automobile, and consumer durables stocks led the downward trend. However, IT and public sector bank shares showed resilience, emerging as outliers in an otherwise bearish market. Market volatility was particularly pronounced due to the scheduled expiry of weekly index options. The S&P BSE Sensex, declined 494.75 points or 0.61% to 81,006.61. The Nifty 50 index slipped 221.45 points or 0.89% to 24,749.85. The 50-unit index has fallen 1.50% in three sessions.