Indian Equity Market: The domestic equity market is expected to open higher on Thursday following positive signals from global peers.
Asian markets rose, while U.S. stocks ended mostly positive in overnight trading after data showed a softening economy and raised hopes of an interest rate cut by the Federal Reserve in September.
Investors have raised their expectations of a September rate cut to more than 70% according to LSEG’s FedWatch.
Indian stock markets ended on a healthy note of gains on Wednesday, clocking fresh closing highs, with the benchmark Sensex index breaching the coveted 80,000 mark for the first time ever and the Nifty 50 index crossing 24,300 intraday.
The Sensex index rose 545.35 points or 0.69 percent to close at 79,986.80, while the Nifty 50 index rose 162.65 points or 0.67 percent to close at 24,286.50.
“Strong institutional inflows continue to support the market’s uptrend, suggesting sustainable returns in the long term. However, focus is likely to shift to the budgets and earnings reports due next week, which may lead to market consolidation in the short term,” said Naveen Kulkarni, chief investment officer, Axis Securities PMS.
Key global market indications on Sensex today include:
Asian Market
Asian markets rose on Thursday, with Japan’s Topix hitting a new record high.
The TOPIX rose 0.56% and the Nikkei added 0.55%. South Korea’s KOSPI rose 0.98% and the KOSDAQ added 0.75%. Hong Kong’s Hang Seng Index futures opened higher.
Give the gift of Nifty today
GIFT Nifty is trading near the 24,460 level, up nearly 95 points from the previous day’s close of Nifty futures, signalling the start of a gap up for the Indian stock market index.
Wall Street
U.S. stock market indexes ended mixed on Wednesday, with the S&P 500 and Nasdaq closing at record highs.
The Dow Jones Industrial Average fell 23.85 points, or 0.06%, to close at 39,308.00, while the S&P 500 rose 28.01 points, or 0.51%, to close at 5,537.02 and the Nasdaq Composite Index rose 159.54 points, or 0.88%, to close at 18,188.30.
Tesla shares rose 6.5% and Nvidia shares rose 4.6%, while Amazon shares fell 1.2%. Paramount Global shares rose nearly 7%, while First Foundation shares fell nearly 24%.
Federal Reserve Board Minutes
Federal Reserve officials acknowledged in June that the U.S. economy appears to be slowing and that “price pressures are fading.” But they still recommended a wait-and-see approach before cutting interest rates, according to minutes of the June 11-12 meeting.
US Services PMI
A measure of activity in the U.S. services sector fell to its lowest level in four years in June. The Institute for Supply Management said its non-manufacturing Purchasing Managers’ Index (PMI) fell to 48.8 last month from 53.8 in May, the lowest since May 2020. Economists surveyed by Reuters had expected the services sector PMI to fall to 52.5.
US unemployment claims
The number of Americans filing new claims for unemployment benefits rose last week. Initial claims for state unemployment insurance rose by 4,000 to a seasonally adjusted 238,000 for the week ended June 29. Economists surveyed by Reuters had expected claims to be 235,000 for the latest week.
Factory Orders
New orders for U.S. manufactured goods unexpectedly fell in May. Factory orders fell 0.5 percent after rising 0.4 percent in April. Economists polled by Reuters had expected factory orders to rise 0.2 percent.
Oil prices
Oil prices fell Thursday after rising 1 percent in the previous trading day.
Brent crude futures fell 0.39% to $87 a barrel, while US West Texas Intermediate (WTI) crude futures fell 0.42% to $83.53.
(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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