Indian Stock Market: Indian stock market indices, Sensex and Nifty 50, are expected to rise on Thursday in a cautious mood following mixed cues from global markets.
Asian markets fell and US stock markets ended mixed last night following the announcement of the US Federal Reserve’s monetary policy decision.
The Federal Reserve left its benchmark interest rate unchanged, but acknowledged disappointment at the “lack of further progress” in bringing inflation down to its 2% target.
Fed Chairman Jerome Powell also downplayed the possibility of rate hikes, saying the Fed would shrink its balance sheet at a more gradual pace to ease tensions in money markets.
On Tuesday, the Indian stock market’s benchmark index gave up its gains for the day and ended in negative territory following a sell-off at the close.
The Sensex fell by 188.50 points or 0.25% to close at 74,482.78, while the Nifty 50 fell by 38.55 points or 0.17% to close at 22,604.85.
Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services We expect the positive momentum to continue.”
The Indian stock market was closed on May 1st due to Maharashtra Day.
Also read: Stock Recommendations: Nuvama’s Sagar Doshi recommends today’s 3 stocks
Here are today’s key global market cues for Sensex.
asian market
Asian markets fell on Thursday following overnight action on Wall Street after the US Federal Reserve kept interest rates on hold.
Japan’s Nikkei Stock Average fell 0.70%, and the TOPIX fell 0.4%. South Korea’s Kospi fell 0.1% and the Kosdaq fell 0.1%. Hong Kong’s Hang Seng Index futures showed a weak start.
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Gift Nifty is trading around 22,745 levels, nearly 30 points premium from the previous closing price of Nifty futures, indicating a strong start for the Indian stock market index.
Also read: Stock Market Today: Thursday – 2 stocks placed on F&O Prohibited List on May 2nd
wall street
US stock markets ended mixed on Wednesday following the Federal Reserve’s monetary policy announcement.
The Dow Jones Industrial Average rose 87.37 points, or 0.23%, to $37,903.29, while the S&P 500 Index fell 17.3 points, or 0.34%, to 5,018.39. The Nasdaq Composite Index fell 52.34 points, or 0.33%, to end at 15,605.48.
Among stocks, Amazon’s stock price rose 2.2%, and Johnson & Johnson’s stock price rose 4.6%. Starbucks stock fell 15.9% and CVS Health stock fell 16.8%. Advanced Micro Devices’ stock plunged 9%, and Super Micro Computer’s stock plunged 14.0%.
us federal reserve system
The US Federal Reserve (Fed) kept its benchmark interest rate unchanged at 5.25%-5.50% for the sixth consecutive meeting, consistent with Wall Street expectations. The Fed signaled it was still leaning toward ultimately reducing borrowing costs, but raised a red flag over recent disappointing inflation data that suggested moves toward further economic balance could stall.
Read here: US Federal Reserve keeps interest rates at 23-year high: 5 key highlights
US job information
The number of job openings in the United States in March was the lowest in three years, while the number of people leaving jobs also decreased. According to the Ministry of Labor’s Job Openings and Turnover Survey (JOLTS) report, the number of job openings, an indicator of labor demand, decreased by 325,000 to 8,488,000 as of the end of March, the lowest level since February 2021. . According to a Reuters survey of economists, the number of job openings is expected to be 8.686 million.
Government bond yield
U.S. Treasury yields fell on Wednesday after the Federal Reserve left interest rates unchanged but signaled it plans to cut rates at some point.
The benchmark 10-year bond yield fell 5 basis points (bp) to 4.63%, while the 2-year bond yield fell 8.2 bps to 4.96%.
dollar
The U.S. dollar index fell and the yen rose more than 3% against the U.S. currency. The yen rose from around 157.58 yen to the dollar in New York overnight to 153.04 yen to the dollar, but then fell to 155.79 yen on Thursday morning. The US dollar index fell 0.58% to 105.71.
oil price
Oil prices rose after hitting a seven-week low, ending a three-day decline.
Brent crude oil futures for July rose 0.3% to $83.65 per barrel, while U.S. West Texas Intermediate (WTI) crude oil futures for June rose 0.3% to $79.22 per barrel. Both indexes fell more than 3% on Wednesday to their lowest levels in seven weeks.
(Information provided by Reuters)
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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