Indian Equity Market: Indian stock market benchmark indices Sensex and Nifty 50 are expected to open higher on Thursday following gains in global equities.
Asian markets rose, with Japan’s Nikkei hitting a record high, while U.S. stocks also closed at a record high overnight, helped by gains in tech stocks such as Nvidia.
Federal Reserve Chairman Jerome Powell’s testimony before House of Representatives lawmakers on Wednesday raised hopes that the central bank could begin an easing cycle later this year.
Expectations of a 25 basis point rate cut by September rose to 74% on Tuesday from about 70% and 45% a month ago, according to CME FedWatch.
Indian stock indexes closed down about 0.5% each on Wednesday, pushed by profit-taking at record levels.
The Sensex index fell 426.87 points or 0.53 to close at 79,924.77, while the Nifty 50 index fell 108.75 points or 0.45 percent to close at 24,324.45.
“We expect the market to stabilise at higher range and any dip will present a buying opportunity for long-term investors. Corporate earnings will kick off with TCS releasing its numbers first. Hence, the IT sector is expected to remain in focus,” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services Ltd.
Key global market indications on Sensex today include:
Asian Market
Asian markets continued to rise on Thursday following an overnight surge on Wall Street, while Japan’s Nikkei average hit a new record high, surpassing 42,000 points for the first time.
The Nikkei Stock Average rose 1.37% and the TOPIX rose 1.17%, both hitting record highs. South Korea’s KOSPI rose 0.76% and the KOSDAQ rose 0.22%. Hong Kong’s Hang Seng Index futures opened higher.
Give the gift of Nifty today
GIFT Nifty is trading near the 24,400 level, up nearly 55 points from the previous day’s closing price of Nifty futures, indicating a strong start for Indian stock market indices.
Wall Street
U.S. stocks ended higher on Wednesday, with the Nasdaq and S&P 500 closing at record highs, led by gains in Nvidia shares and other major stocks.
The Dow Jones Industrial Average rose 1.09% to 39,721.36, while the S&P 500 gained 1.02% to close at 5,633.91. The Nasdaq rose 1.18% to close at 18,647.45, hitting a record high for the seventh consecutive day.
Nvidia shares rose 2.7%, Micron Technology shares rose 4% and Advanced Micro Devices shares surged 3.9%. Apple shares rose 1.9% to a record high, giving the company a market capitalization of $3.6 trillion.
Intuit shares fell 2.6%, while Illumina shares rose more than 6%.
Jerome Powell’s testimony
Federal Reserve Chairman Jerome Powell, speaking over two days before House and Senate committees, suggested the central bank was close to a decision to cut interest rates but insisted it was not yet ready to declare that inflation had been conquered, Reuters reported.
Powell said the Fed won’t cut interest rates until it has more confidence that inflation will return to the central bank’s 2% target.
U.S. Treasury Yields
U.S. Treasury yields fell after Federal Reserve Chairman Powell’s dovish comments confirmed expectations of an easing cycle later this year. The 10-year yield fell 1.6 basis points (bps) to 4.284%, the 30-year yield fell 2.3 bps to 4.472%, and the 2-year yield was stable at 4.63%.
Oil prices
Oil prices rose on Thursday as crude inventories fell.
Brent crude futures rose 0.43% to $85.45 a barrel, while US West Texas Intermediate (WTI) crude rose 0.47% to $82.49 a barrel.
Today’s Gold Price
Gold prices were steady on Thursday ahead of U.S. inflation data due later in the day. Spot gold was little changed at $2,372.99 an ounce, while U.S. gold futures were flat at $2,378.40.
(Quoted from Reuters)
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