Indian Equity Market: Domestic equity indices Sensex and Nifty 50 are expected to open higher on Monday following positive momentum in global markets.
Asian markets rose, while US stocks closed higher last week following the release of key economic data.
According to CME’s FedWatch tool, the market is pricing in a 49.4% probability of a rate cut at the Federal Reserve’s September meeting, down from 54.8% a week ago.
Indian equity market major indices ended flat on Friday, swinging negatively on profit booking and weak signs in the global economy.
The Sensex index fell 7.65 points or 0.01 percent to close at 75,410.39, while the Nifty 50 index fell 10.55 points or 0.05 percent to close at 22,957.10.
“Weakening selling by foreign institutional investors and favorable domestic macro indicators supported the positive market sentiment. Overall, we expect the market to show a moderate uptrend and some volatility next week as the elections and earnings season draw to a close,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.
Going forward, investors will be keeping a close eye on fourth-quarter earnings final results, voter turnout in Indian Lok Sabha elections, domestic and global macroeconomic data, foreign fund inflows, crude oil prices and other important global indicators.
Please read this: This week’s focus: Major market triggers this week include Q4 earnings, F&O expirations, Lok Sabha elections and global trends
Key global market indications on Sensex today include:
Asian Market
Asian markets rose on Monday ahead of key economic data from China and India later this week. The MSCI composite index of Asia-Pacific shares excluding Japan rose 0.1%, after losing 1.5% last week and retreating from a two-year high.
Japan’s Nikkei rose 0.39% and the Topix added 0.4%. South Korea’s KOSPI rose 0.3% and the Kosdaq added 0.35%. Hong Kong’s Hang Seng Index futures got off to a solid start.
Give the gift of Nifty today
GIFT Nifty was trading near the 23,030 level, nearly 15 points higher than the previous close of Nifty futures, signalling a flat to positive start for the Indian stock market index.
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Wall Street
U.S. stocks ended higher on Friday, with the Nasdaq recording its fifth consecutive week of gains and closing at a record high.
The Dow Jones Industrial Average rose 4.33 points, or 0.01%, to 39,069.59, while the S&P 500 added 36.88 points, or 0.70%, to 5,304.72. The Nasdaq Composite Index rose 184.76 points, or 1.10%, to close at 16,920.79.
For the week, the Dow fell 2.34%, the S&P gained 0.03% and the Nasdaq added 1.41%.
Read also: Wall Street outlook this week: Investors focus on Fed’s preferred inflation metric, Core PCE
Bank of Japan
Bank of Japan Governor Kazuo Ueda said the bank will proceed cautiously with its inflation targeting framework, although estimating the neutral interest rate accurately is particularly difficult in Japan given the prolonged period of near-zero short-term interest rates over the past three decades.
US Capital Goods Orders
New orders for U.S.-made nondefense capital goods, excluding aircraft, rose 0.3% in April, revised up from a 0.1% decline in March, according to the Commerce Department’s Census Bureau. Economists surveyed by Reuters had expected orders for these capital goods to rise 0.1% after falling 0.2% in March.
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Consumer inflation
Reuters reported that a University of Michigan survey showed U.S. consumers’ inflation expectations improved in late May after worsening in early May. The survey showed 12-month inflation expectations fell to 3.3% from 3.5%. The five-year inflation outlook improved to 3.0% from 3.1% earlier this month.
Oil prices
Oil prices are stabilizing after their biggest weekly drop in four weeks. Brent crude futures rose 0.13% to $82.23 a barrel, while West Texas Intermediate (WTI) rose 0.17% to $77.85, after falling 2.2% last week to its lowest since early February.
(Quoted from Reuters)
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