GIFT Nifty indicates positive opening; benign US PPI reading further fuels Fed rate cut hopes

GIFT Nifty:

GIFT Nifty September 2025 futures were trading with a gain of 20.50 points (or 0.08%) in early trade, suggesting that the Nifty 50 could open with some positive bias today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 115.69 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,004.29 crore in the Indian equity market on 09 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 5,901.48 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 in a mixed manner on Thursday after a drop in U.S. producer prices supported bets the Federal Reserve will resume cutting interest rates next week.

Meanwhile, Japan's wholesale inflation accelerated in August on steady rises in food costs, data showed on Thursday. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 2.7% in the year to August, accelerating from a revised 2.5% increase in July.

Overnight stateside, most of the key U.S. benchmarks rose to hit new record closing highs after a benign reading on U.S. producer prices led markets to price in more chance of three interest rate cuts from the Federal Reserve this year.

The broad market S&P 500 finished up 0.3% at 6,532.04, a record close for the index. The Nasdaq Composite edged up 0.03% to end at 21,886.06, likewise notching a closing high. The Dow Jones Industrial Average lost 220.42 points, or 0.48%, to finish at 45,490.92.

The monthly US producer prices excluding food and energy declined 0.1% in August from the prior month, falling short of consensus estimates of a 0.3% increase, while July?s figure was also revised down.

Domestic Market:

Domestic equity benchmarks closed with strong gains on Wednesday, tracking firm global cues. The Nifty 50 ended above 24,950, lifted by IT and PSU bank stocks.

US President Donald Trump said his administration was in talks with India to resolve trade barriers and planned to speak with Prime Minister Narendra Modi. The remarks raised hopes of a breakthrough after weeks of tensions.

Expectations of a US Federal Reserve rate cut next week further buoyed investor sentiment.

The S&P BSE Sensex added 323.83 points or 0.40% to 81,425.15. The Nifty 50 index rose 104.50 points or 0.42% to 24,973.10.

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