Market Bizzz

According to Friday’s provisional data, Friday’s FII buying was the highest in three years and the eighth-highest ever recorded. The all-time record for single-day FII buying was set on May 6, 2020, when they invested Rs 17,123 crore in the Indian stock market.

European shares declined on Friday following a previous rally driven by the U.S. Federal Reserve’s interest rate cut. Novo Nordisk dropped due to disappointing obesity pill data, while the auto sector led declines. British retail sales and euro zone consumer confidence showed positive trends, but German producer prices fell less than expected.

Oil prices dipped slightly on Friday but are set for a second week of gains, supported by a significant U.S. interest rate cut and falling stockpiles. Brent futures fell to $74.54 a barrel, while WTI crude dropped to $71.94. Despite economic concerns in China, both benchmarks rose around 4% this week.

The Federal Reserve’s big interest rate cut this week is not a sign that the US economy is “falling behind,” Fed governor Christopher Waller said in an interview on Friday. Citing a speech he made earlier this year, Waller stressed that the Fed could cut rates even if the economy was doing fine.

The US Federal Reserve’s unexpected rate cut is unlikely to boost foreign investments in Indian equities due to high stock valuations, says Chris Wood of Jefferies. While other markets may benefit, India remains less attractive despite strong economic growth and infrastructure spending. Geopolitical risks and the US election outcome are key global concerns.

The Reserve Bank of India has lifted the restrictions on IIFL Finance’s gold loan business, allowing the company to resume operations. The ban, imposed in March due to supervisory concerns, had led to a significant decline in IIFL’s gold loan book and profits. The company can now comply with all relevant laws and regulations.

India’s inclusion in global bond indices is expected to increase foreign investment in government bonds, potentially reducing banks’ role in financing the Centre’s debt. This shift may lead to a reduction in the statutory liquidity ratio over time, according to S&P Global economists.

A 1:1 bonus share issue means that shareholders will receive one additional share credited to their demat account for each existing share they hold, assuming they meet the eligibility criteria.

The Federal Reserve’s decision to cut its benchmark interest rate by 50 basis points is expected to positively impact Asian stocks. Analysts believe this move will provide more room for regional central banks to loosen policies, easing monetary pressure and boosting risk assets and high-yield currencies in the region.

After hitting lows around Rs 3,583 in June 2024, the price experienced a significant upward movement, reaching an all-time high of Rs 4,592, marking a nearly 30% return from its lower level, with buyers dominating the market. A Higher Top Higher Bottom pattern developed during this rally.