GIFT Nifty:

The GIFT Nifty December futures contract is currently trading 7.50 points higher, suggesting a flat-to-positive opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,830.31 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,659.06 crore in the Indian equity market on 5 December 2024, provisional data showed.

According to NSDL data, FPIs have bought shares worth over Rs 17921.66 crore (so far) in the secondary market during December 2024. This follows their sale of shares worth Rs 39315.78 crore in November 2024.

Global Markets:

Asian stocks kicked off the week on a somber note Monday, as investors grappled with South Korea's political turmoil and awaited fresh stimulus measures from China. Oil prices remained steady following the dramatic fall of the Syrian government.

Investors are gearing up for a pivotal week, marked by a flurry of central bank decisions across four continents, a crucial meeting of Chinese officials, and the release of key US inflation data. This flurry of economic events will shape investment strategies for the remainder of 2024 and set the stage for 2025.

Last Friday, US indices hit record highs on Friday, where technology stocks continued to push higher as stronger-than-expected nonfarm payrolls data did little to deter bets on a December rate cut. Markets were also seeking more cues on what President-elect Donald Trump’s policies will entail for the U.S. in the coming years.

The S&P 500 rose 0.3% to 6,090.27 points on Friday, while the NASDAQ Composite rose 0.8% to 19,859.77 points, with both indexes eking out record highs. The Dow Jones Industrial Average lagged, falling 0.3% to 44,642.52 points.

Nonfarm payrolls increased by 227,000 jobs last month, above the expected 202,000, after rising an upwardly revised 36,000 in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing factories in the West Coast.

Investors were waiting to see what a major regime change in Syria will entail for geopolitics in the Middle East, after rebel forces ousted President Bashar al-Assad and took control of Damascus, ending 13 years of civil war. Media reports said al-Assad had landed in Moscow, while Israeli forces had entered Syria.

US investors are eagerly awaiting the release of consumer price index inflation data on Wednesday. This key economic indicator will provide further insights into the health of the US economy and the future trajectory of interest rates.

Domestic Market:

The domestic equity benchmarks concluded a volatile trading session on Thursday, ending a five-day winning streak. The Nifty 50 index closed below the 24,700 level, despite hitting an intraday high of 24,751.05. Sectorally, metal and auto stocks emerged as top performers, while banking and IT stocks witnessed a decline. The barometer index, the S&P BSE Sensex was down 56.74 points or 0.07% to 81,709.12. The Nifty 50 index lost 30.60 points or 0.12% to 24,677.80.

The market's movement was largely influenced by the Reserve Bank of India's (RBI) monetary policy decision. While the central bank maintained the repo rate, it reduced the cash reserve ratio (CRR) to ease liquidity conditions. The RBI expressed optimism about improving demand trends and industrial growth, driven by increased government spending and stronger rural demand. However, persistent inflationary pressures have pushed back the timeline for the next rate cut to February 2025.