A lukewarm opening on the cards

GIFT Nifty:

GIFT Nifty May 2025 futures were trading 12 points lower in early trade, suggesting a flat-to-negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth 2,769.81 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,290.49 crore in the Indian equity market on 2 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 173.05 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.

Global Markets:

The US Dow Jones index futures were currently down by 276 points, signaling a negative opening for US stocks today.

Asian stocks were mixed on Monday as investors remained cautious ahead of potential U.S.-China trade negotiations and the upcoming U.S. Federal Reserve policy meeting later in the week.

China stated last week that it is considering trade discussions with the United States, emphasizing that any talks must be based on mutual sincerity and the removal of unilateral tariffs. This statement followed recent U.S. comments indicating a willingness to resume negotiations.

Markets in Japan, South Korea, Hong Kong, and China were closed due to public holidays.

In the United States, equities closed higher on Friday, supported by gains in the financial, industrial, and oil and gas sectors. The Dow Jones Industrial Average rose by 1.39%, the S&P 500 gained 1.47%, and the NASDAQ Composite advanced 1.51%.

Apple Inc. shares declined by over 3% following the company's announcement of approximately $900 million in expected tariff-related costs for the upcoming quarter. Although Apple reported fiscal second-quarter earnings that exceeded expectations'driven by stronger-than-anticipated iPhone sales'concerns over tariffs tempered investor sentiment.

Amazon stock ended marginally lower after the company issued softer guidance for the current quarter and reported slower growth in its cloud computing division.

U.S. nonfarm payrolls increased by 177,000 in the previous month, exceeding expectations and suggesting continued strength in the labor market despite trade policy uncertainties. This followed a downwardly revised gain of 185,000 in March. The unemployment rate remained steady at 4.2%, while average hourly earnings rose by 0.2%, down slightly from the previous month's 0.3% increase.

The Federal Reserve is set to begin its two-day policy meeting on Tuesday. It is widely expected to keep interest rates unchanged amid global economic uncertainty. Fed Chair Jerome Powell recently indicated a cautious stance, citing inflation concerns linked to trade tariffs, despite calls from President Donald Trump and Treasury Secretary Scott Bessent to reduce policy rates.

Domestic Market:

The domestic equity indices ended slightly above the flat line on 2 May 2025. The Nifty settled above the 24,300 level. Shares in the oil & gas, media, and IT sectors advanced, while those consumer durables, metal and pharma sectors declined. The barometer index, the S&P BSE Sensex, added 259.75 points or 0.32% to 80,501.99. The Nifty 50 index rose 12.50 points or 0.05% to 24,346.70.

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