Indian Equity Market: Domestic equity indexes Sensex and Nifty 50 are expected to open higher on Thursday following positive signals from their global peers.
Asian markets rose, while US stocks ended mostly higher following the Federal Reserve’s policy decision and inflation data.
The US central bank kept interest rates on hold for the seventh consecutive meeting and hinted at one 25 basis points (bps) cut this year as weaker than expected US inflation data pleased markets.
Indian stock markets rose on Wednesday, mainly on the back of positive global economic news, with the benchmark Nifty 50 hitting a record high during trading hours.
The Sensex index rose 149.98 points or 0.20 per cent to close at 76,606.57, while the Nifty 50 index rose 58.10 points or 0.25 per cent to close at 23,322.95.
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“Nifty has been witnessing consolidation for the past three days amid no fresh domestic triggers while cautiously waiting for US CPI and US Fed policy outcomes. The market is likely to consolidate on a positive note in the near term,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.
Here are some key indices of domestic and global markets on Sensex today:
Asian Market
Asian markets continued to rise on Thursday, following Wall Street’s overnight gains following the US Federal Reserve’s interest rate decision.
Japan’s Nikkei rose 0.56%, while the Topix was flat. South Korea’s KOSPI rose 1.39% and the Kosdaq added 0.6%. Hong Kong’s Hang Seng Index futures opened higher.
Give the gift of Nifty today
GIFT Nifty is trading around 23,460 levels, up nearly 100 points from the previous day’s closing price of Nifty futures, indicating a strong start for Indian stock market indices.
Read also: Stocks rise as bond yields fall and attention turns to Fed: Market Wrap
Wall Street
U.S. stocks ended mixed on Wednesday with the S&P 500 and Nasdaq closing at record highs for a third straight day following Federal Reserve policy results and weaker-than-expected inflation data.
The S&P 500 rose 45.71 points, or 0.85%, to 5,421.03, the Nasdaq Composite added 264.89 points, or 1.53%, to 17,608.44 and the Dow Jones Industrial Average fell 35.21 points, or 0.09%, to close at 38,712.21.
On the stock market, Apple shares rose 2.9%, making the iPhone maker briefly the world’s most valuable company again, knocking Microsoft off the top spot. Oracle shares rose 13.3%.
Federal Reserve Board
The Federal Reserve kept interest rates steady at 5.25% to 5.50% for the seventh consecutive session, saying it had made “moderate” progress toward its 2% longer-term inflation goal. Federal Open Market Committee officials, led by Chairman Jerome Powell, signaled they plan to cut interest rates just once this year.
Please read this: The US Federal Reserve is expected to keep its key interest rate at a 23-year high and cut it by a quarter percentage point in 2024. Five key takeaways from Fed policy
US Inflation
The U.S. Consumer Price Index (CPI) unexpectedly held steady in May, rising 3.3% year-on-year, down 0.1 percentage point from April’s 3.4% increase, according to the Labor Department. Monthly inflation was flat at 0.0%, down from a 0.3% increase in April. Economists surveyed by Reuters had expected the CPI to rise 0.1% in May.
Indian Inflation and IIP
India’s retail price inflation, measured by the Consumer Price Index (CPI), fell to 4.75% in May from 4.83% in April, its lowest level in a year, data from the Statistics Ministry showed. Inflation has remained below 5% since March.
Meanwhile, factory output rose 5% in April, up steadily from 4.9% in March and 5.6% in February. From April to March (FY24), factory output rose 5.9%, slightly above the 5.2% increase a year earlier.
Please read this: Indian economy picks up as retail inflation eases and factory output rises slightly in May
U.S. Treasury Yields
U.S. Treasury yields fell Wednesday in response to the Fed’s policy and weaker-than-expected inflation readings. The yield on the benchmark 10-year note fell 8 basis points to 4.322%, after hitting 4.25%, its lowest level since April 1. The yield on the 30-year note fell 5.8 basis points to 4.477%. The yield on the two-year note fell 7.6 basis points to 4.758%, after hitting 4.67%, its lowest level since April 5.
Oil prices
Oil prices fell last week following Fed policy and a larger-than-expected rise in U.S. crude oil inventories.
Brent crude futures fell 0.17% to $82.46 a barrel, while West Texas Intermediate (WTI) crude futures fell 0.20% to $78.34. Both benchmarks had risen about 0.8% in the previous trading session.
(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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