Indian Equity Market: Domestic equity indices Sensex and Nifty 50 are expected to open higher on Wednesday, riding on positive momentum in global markets.
Asian markets rose and U.S. stock indexes ended the overnight session higher on growing expectations that the Fed will cut interest rates this year.
Federal Reserve Chairman Jerome Powell struck a slightly dovish tone in his comments, suggesting the central bank is likely to begin an easing cycle later this year.
On Tuesday, India’s major stock market indexes ended with modest losses after hitting fresh record highs during trade.
The Sensex index fell 34.74 points or 0.04 percent to close at 79,441.45, while the Nifty 50 index fell 18.10 points or 0.07 percent to close at 24,123.85.
“Strong GST collections in June, manufacturing PMI index rebounding to 58.3 in June and expectations of strong first quarter earnings are impacting the market positively. We expect this momentum to continue and Nifty to stabilise in the higher zone,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Key global market indications on Sensex today include:
Asian Market
Asian markets rose on Wednesday following overnight gains on Wall Street and the release of regional economic data.
Japan’s Nikkei rose 0.84% to surpass the 40,000 mark, while the Topix rose 0.08%. South Korea’s KOSPI rose 0.26% and the Kosdaq rose 0.5%. Hong Kong’s Hang Seng Index futures opened lower.
Give the gift of Nifty today
GIFT Nifty is trading around 24,340 levels, up nearly 140 points from the previous day’s closing price of Nifty futures, indicating a strong start for Indian stock market indices.
Wall Street
U.S. stock indexes closed higher on Tuesday, led by gains in large growth stocks and Tesla shares.
The Dow Jones Industrial Average rose 162.33 points, or 0.41%, to close at 39,331.85, while the S&P 500 rose 33.92 points, or 0.62%, to close at 5,509.01 and the Nasdaq Composite rose 149.46 points, or 0.84%, to close at 18,028.76.
Tesla shares rose 10.2%, Apple shares rose 1.6%, Amazon.com Inc. and Alphabet Inc. also rose, Nvidia shares fell 1.3%, and Paramount Global Inc. rose 5.7%.
Jerome Powell
Federal Reserve Chairman Jerome Powell said he needs more data before cutting interest rates to see if the recent drop in inflation really tells us what’s happening to underlying price pressures.
US Jobs
The number of U.S. job openings rose in May after recording sharp declines over the previous two months. The Job Openings and Labor Turnover Survey (JOLTS) report showed job openings rose by 221,000 to 8.14 million at the end of May. Economists surveyed by Reuters had expected 7.91 million job openings in May.
Japan PMI
Japan’s services sector contracted in June for the first time in nearly two years. According to an S&P Global Market Intelligence survey, the final au Jibun Bank services sector Purchasing Managers’ Index (PMI) fell to 49.4 in June from 53.8 in May, ending a 21-month streak of expansion, Reuters reported. The composite PMI fell to 49.7 in June from 52.6 in May, the first time it has fallen below 50.0 in seven months.
Dollar, government bond yields
The US dollar fell and Treasury yields also fell amid growing expectations of an interest rate cut by the Federal Reserve.
The dollar index, which gauges the greenback’s relative strength against a basket of currencies including the yen and euro, fell 0.15% to 105.68. The yield on the benchmark 10-year Treasury note fell 4.9 basis points to 4.43%.
Oil prices
Oil prices are stabilizing near two-month highs amid signs that U.S. crude inventories are showing signs of a significant decline.
Brent crude oil rose 0.27% to $86.47 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.23% to $83.00.
(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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