GIFT Nifty:

The GIFT Nifty October futures contract is down 110 points, suggesting a weak start for the Nifty 50 amid mixed cues from global markets and fears of full fledged war between Iran and Israel.

The Securities and Exchange Board of India's (SEBI) introduced a six-step plan to curtail retail participation in speculative index derivatives. This could result in a significant decline in trading volumes. New regulations require traders to maintain higher margins, potentially hindering their ability to take on larger leveraged positions. Moreover, the reduction of weekly options expiries to one per exchange could lead to decreased revenues for exchanges and brokers. This change means that each exchange will only offer weekly contracts for one benchmark index instead of the current two to four. These measures are designed to reduce excessive speculation in the futures and options (F&O) segment, where retail investors often find themselves on the losing end of trades.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,579.35 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,609.55 crore in the Indian equity market on 1 October 2024, provisional data showed.

FPIs have bought shares worth over Rs 5579.35 crore in October 2024 (so far). They bought shares worth 15,423.32 crore in September 2024.

Global Markets:

Asian stock market exhibited mixed trends on Thursday, mirroring a cautious sentiment across global markets amid escalating tensions in the Middle East. Japan's Nikkei 225 surged over 2%, while markets in China and South Korea remained closed for a holiday.

Geopolitical tensions in the Middle East have spiked following Iran's missile attack on Israel on October 1. Israel's subsequent ground incursions into Lebanon targeting Hezbollah, an Iran-backed militia group, have exacerbated concerns about potential oil supply disruptions and increased uncertainty in global financial markets.

In the United States, stock markets closed with modest gains on Wednesday. The tech-heavy Nasdaq Composite rose slightly by 0.08%, while the S&P 500 and Dow Jones Industrial Average inched up by 0.01% and 0.09%, respectively. Investor caution persisted, however, due to Middle East tensions and the anticipation of additional US labor data.

Key US tech stocks witnessed mixed performance. Nvidia gained 1.6%, while Tesla experienced a 3.5% decline. Humana Inc. and Nike faced significant losses, with drops of 11.8% and nearly 7%, respectively.

The ADP National Employment Report indicated that US private payrolls grew more than expected in September, adding 143,000 jobs. This surpassed economists' forecasts and highlighted the strength of the US labor market despite broader economic uncertainties.

The US job market's resilience was further underscored by the unexpected increase in job openings in August. The Job Openings and Labor Turnover Survey (JOLTS) revealed a rebound of 329,000 job openings, exceeding analysts' expectations. While hiring declined slightly, layoffs decreased.

Domestic Market:

The domestic benchmark indices declined for the third consecutive session on Tuesday with Nifty slipping below 25,800. Media, IT and auto shares climbed. The recent surge in Chinese equities, fueled by hopes of a recovery, has led to significant fund flows into the region. The S&P BSE Sensex fell 33.49 points or 0.04% to 84,266.29. The Nifty 50 index shed 13.95 points or 0.05% to 25,769.90. The 50-unit index has corrected 1.70% in three straight sessions.

The domestic stock market was shut on Wednesday, 2 October 2024, for Mahatma Gandhi Jayanti.

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