Market likely to open higher | Latest updates on Capital Market

The Indian stock market is set to open on a positive note, with the Nifty 50 index futures on the GIFT Nifty indicating a potential rise of 46.50 points at the opening bell. This comes after consumer prices in India, as measured by the Consumer Price Index (CPI), dipped to a low of 4.83% in April 2024, marking the lowest inflation rate in 11 months.

Meanwhile, global markets are showing mixed signals as investors analyze inflation data from India and Japan. In Japan, the wholesale inflation (corporate goods price index) rose slightly by 0.9% year-on-year in April. In the US, the Dow Jones experienced a slight dip, while the S&P 500 remained relatively stable. However, the Nasdaq saw a small gain, with tech giants like Apple and Alphabet performing well.

Back in India, the stock market recovered from a morning dip on Monday, with pharmaceutical and healthcare stocks leading the gains. The Nifty index closed above 22,100 after initially falling to a low of 21,821. Analysts attribute the sell-off by foreign investors to a global shift towards cheaper Chinese markets, rather than concerns about India’s upcoming elections. Despite short-term fluctuations, experts remain positive about India’s long-term economic outlook.

Foreign portfolio investors (FPIs) have been selling shares in the Indian market, with net sales amounting to over Rs 29,474.42 crore in May so far. On the other hand, domestic institutional investors (DIIs) have been net buyers, providing some stability to the market. Overall, the Indian stock market continues to be influenced by both domestic and global factors, making it a dynamic and exciting space for investors.