GIFT Nifty hints at green start for Nifty 50; Japan enters new period of policy uncertainty

GIFT Nifty:

GIFT Nifty September 2025 futures were trading with a gain of 55.00 points (or 0.22%) in early trade, suggesting that the Nifty 50 could open with some gains today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,304.91 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,821.23 crore in the Indian equity market on 05 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 5,666.90 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asian markets traded mixed on Monday as investors weighed key political developments in Japan while keeping an eye on important regional data releases scheduled this week.

Japanese Prime Minister Shigeru Ishiba resigned on Sunday, ushering in a potentially lengthy period of policy uncertainty at a shaky moment for the world's fourth-largest economy.

As per reports, Koizumi Shinjiro, the agricultural minister and son of a former prime minister, is a likely contender to take the helm. Meanwhile, Takaichi Sanae, protege of the late Prime Minister Abe Shinzo and a runner-up in last year?s party contest, is also a key contender, the reports added.

Japan?s economy grew at a much stronger pace than earlier estimated in the second quarter, supported by upward revisions in private consumption and inventories. Revised data from the Cabinet Office on Monday showed GDP expanding at an annualized 2.2% in the April?June period, up from the 1.0% reported on 15 August 2025. On a quarterly basis, growth was revised to 0.5% from the initial 0.3%.

Oil prices were in focus after OPEC+ announced over the weekend it will lift oil production again starting in October, though the group is slowing the pace of hikes. In an meeting on Sunday, eight OPEC+ members agreed to lift production by 137,000 barrels a day starting in October, far below the increases of around 555,000 bpd in September and August, and 411,000 bpd in July and June.

Last Friday in the U.S., all three major averages closed lower after a weaker-than-expected jobs report gave way to worries about a slowing economy, even as expectations for a Federal Reserve rate cut were solidified.

The S&P 500 finished down 0.32% at 6,481.50, while the Nasdaq Composite declined 0.03% to settle at 21,700.39. The Dow Jones Industrial Average closed down 220.43 points, or 0.48%, at 45,400.86.

The U.S. job growth slowed sharply in August, pushing the unemployment rate to 4.3%?its highest level in nearly four years. The data underscored the softening labor market and strengthened expectations for a Federal Reserve rate cut later this month.

Domestic Market:

The frontline equity benchmarks ended almost unchanged on Friday as profit booking in FMCG and IT counters offset gains in auto stocks. The market, which opened higher on the back of positive global cues, struggled to hold on to early momentum despite the government?s sweeping GST 2.0 overhaul.

The Nifty 50 held the 24,700 mark. In early trade, the index surged to an intraday high of 24,832.35, but mid-session selling dragged it down to a low of 24,621.60. Last-hour buying helped the index recover partially, leaving it to close flat.

The S&P BSE Sensex shed 7.25 points or 0.01% to 80,710.76. The Nifty 50 index rose 6.70 points or 0.03% to 24,741.

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