GIFT Nifty points to muted start

GIFT Nifty:

GIFT Nifty May 2025 futures were trading 4.50 points lower in early trade, suggesting a flat-to-negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth 2,201.79 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 683.77 crore in the Indian equity market on 21 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 16013.16 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:

Asian markets declined on Thursday, mirroring overnight losses on Wall Street. Investor sentiment was impacted by concerns that a proposed U.S. budget bill could significantly increase the national debt.

In Japan, the manufacturing sector contracted for the eleventh consecutive month in May, according to preliminary data from the au Jibun Bank flash manufacturing Purchasing Managers' Index (PMI). The index registered at 49.0 for the first three weeks of May, slightly improving from 48.7 in April but remaining below the 50-mark that separates growth from contraction.

In the United States, all three major stock indices closed lower on Wednesday. The Dow Jones Industrial Average fell 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq Composite declined 1.41%. The market selloff was attributed to a sharp rise in Treasury yields amid concerns that the proposed budget bill could increase fiscal pressure.

The proposed legislation, which includes tax cuts and spending measures, is reportedly facing resistance from within the Republican party. Analysts estimate the bill could add between $3 trillion and $5 trillion to the current U.S. debt, which stands at $36.2 trillion. The development follows a recent credit rating downgrade by Moody's, citing concerns over the rising national debt.

In corporate news, Alphabet Inc. shares rose more than 2% following the company's announcement of new AI-related products and initiatives aimed at maintaining its competitive edge in the sector.

Microsoft Corporation traded slightly lower after disclosing that approximately 394,000 Windows devices worldwide had been infected by the Lumma malware.

Domestic Market:

The domestic equity benchmarks broke their three-day losing streak and ended with respectable gains Wednesday, thanks to strong support from pharma and auto stocks. While there were no major domestic cues driving the market, global jitters remained in play. The S&P BSE Sensex gained 410.19 points or 0.51% to 81,596.63. The Nifty 50 index rose 129.55 points or 0.52% to 24,813.45. In the previous three session, the Sensex and Nifty declined 1.63% and 1.51%, respectively.

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