Indian equity market: Ahead of Indian and US inflation data and the US Federal Reserve’s interest rate decision, domestic equity indexes Sensex and Nifty 50 are expected to open flat on Wednesday following mixed signals from other indices.
Asian markets traded mixed, but U.S. stocks ended mostly higher, with the S&P 500 and Nasdaq closing at record highs.
Reuters reported that the market has backed off on expectations of the Fed’s first rate cut in September, with the probability of this now priced in at around 50%, according to CME’s FedWatch tool.
Indian stock indexes ended flat on Tuesday amid weakness in the global economy.
The Sensex index fell 33.49 points or 0.04 percent to close at 76,456.59, while the Nifty 50 index rose 5.65 points or 0.02 percent to close at 23,264.85.
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“In the absence of fresh catalysts, the market appears to be in consolidation mode. Globally, investors are cautiously waiting for the US CPI data and US Fed policy outcome tomorrow. The Fed’s comments could give the market a direction. For now, investors are pricing in one rate cut towards the end of the year, so any deviation from that could be market-swaying,” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services Ltd.
Key global market indications on Sensex today include:
Asian Market
Asian markets were mixed, following a similar move on Wall Street overnight ahead of the release of key economic data from the region.
Japan’s Nikkei fell 0.65% and the Topix dropped 0.7%. South Korea’s KOSPI rose 0.24% and the Kosdaq rose 0.84%. Hong Kong’s Hang Seng Index futures are off to a weak start.
Give the gift of Nifty today
Indian equity market indices saw a flat start with Gift Nifty trading around the 23,310 level.
Read also: Stock picks: Motilal Oswal suggests stocks to buy this week
Wall Street
US stock markets ended mixed on Tuesday with the S&P 500 and Nasdaq closing at record highs for a second consecutive day ahead of consumer price index and Federal Reserve policy announcements.
The Dow Jones Industrial Average fell 120.62 points, or 0.31%, to 38,747.42, while the S&P 500 rose 14.53 points, or 0.27%, to 5,375.32. The Nasdaq Composite Index added 151.02 points, or 0.88%, to close at 17,343.55.
General Motors shares rose 1.35% after the company announced a $6 billion share buyback plan and also cut its full-year EV production forecast.
After the close, Oracle shares rose 8% following the quarterly earnings report. The stock closed down 0.5% in regular trading.
Apple stock price
Apple shares rose 7.3% to close at a record high after the company unveiled new artificial intelligence features, including an improved Siri virtual assistant.
Please read this: Apple shares hit record high after AI announcement
Federal Reserve Board
The US Federal Reserve’s (Fed) policy meeting begins on June 11 and the central bank is widely expected to keep interest rates unchanged. The Federal Open Market Committee (FOMC), led by Fed Chairman Jerome Powell, is likely to maintain its guidance of keeping interest rates high and unchanged at the policy meeting.
Please read this: US Fed policy: FOMC under Chairman Powell to maintain interest rates amid diverging labor market trends, focus on core CPI
India’s GDP growth projected at 6.7%
According to the World Bank, the Indian economy is expected to grow at an average rate of 6.7% per financial year between 2024 and 2026. In its latest World Economic Prospects report, the World Bank said India will continue to be the fastest growing large economy. As per the forecast, India is expected to register growth of 6.6%, 6.7% and 6.8% in fiscal years 2024, 2025 and 2026 respectively.
Please read this: India will grow at about 6.7% between 2024 and 2026: World Bank
Oil prices
Oil prices rose, with Brent crude exceeding $82 a barrel.
Brent crude oil rose 0.21% to $82.09 a barrel, while US West Texas Intermediate (WTI) crude futures rose 0.36% to $78.18.
(Quoted from Reuters)
Disclaimer: The views and recommendations expressed above are those of the individual analysts or brokerage firms and not that of Mint. We recommend checking with a certified professional before making any investment decisions.
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