Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US Fed meet outcome to gold prices

Indian stock market: The domestic equity indices are expected to open higher on Thursday following positive global market cues.

Asian markets traded higher, with the Nikkei hitting fresh all-time highs, while the US stock indices also closed at record levels overnight, supported by the outcome of the US Federal Reserve’s monetary policy meeting.

The Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) held the Federal Funds rate at 5.25% – 5.5% and maintained its forecast for three rate cuts this year.

Fed Chair Jerome Powell said that despite recent inflation data coming in hotter than expected, the numbers “haven’t really changed the overall story, which is that of inflation moving down gradually, on a somewhat bumpy road,” Reuters reported.

On Wednesday, the Indian stock market indices ended with minor gains amid bouts of volatility supported by upbeat global sentiment.

The Sensex gained 89.64 points, or 0.12%, to close at 72,101.69, while the Nifty 50 settled 21.65 points, or 0.1%, higher at 21,839.10.

“Lifted by favourable global sentiment and solid direct tax collection, Indian markets rebounded, closing with modest gains. Robust FII & DII inflows sustained the market. Domestic mid & small caps are likely to lag large caps driven by premium valuations, in the short-term,” said Vinod Nair, Head of Research, Geojit Financial Services.

Also Read: Stock market today: RBL Bank, Tata Chemicals, ZEEL among 8 stocks under F&O ban list on Thursday — March 21

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher tracking an overnight rally on Wall Street after the US Fed’s monetary policy outcome.

Japan’s Nikkei 225 jumped 1.57%, hitting a new all time high, while the Topix touched a new record high, gaining 1.41%. South Korea’s Kospi surged 1.52% to hit its highest level since April 2022, while the Kosdaq rose 1.48%. Hong Kong’s Hang Seng index futures indicated a higher opening.

Gift Nifty Today

Gift Nifty was trading around 22,078 level, a premium of nearly 170 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

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US Stocks

US stock market indices recorded all-time closing highs on Wednesday after the Federal Reserve, while keeping interest rates unchanged, reinforced expectations that rates could be cut as many as three times this year.

The Dow Jones Industrial Average jumped 401.37 points, or 1.03%, to 39,512.13, while the S&P 500 rallied 46.11 points, or 0.89%, to 5,224.62. The Nasdaq Composite ended 202.62 points, or 1.25%, higher at 16,369.41.

Among stocks, Amazon shares rose 1.3%, Tesla shares gained 2.5% and Chipotle Mexican Grill share price surged 3.5%. Equinix shares fell 2.3%.

US Federal Reserve

The US Federal Reserve decided to keep the benchmark federal funds rate in a range of 5.25% to 5.5%, the highest since 2001, for a fifth straight meeting, in line with Street estimates. The US central bank also signaled three rate cuts in 2024, despite sticky inflation.

Read here: US Fed keeps benchmark rates steady at 23-year high-mark, projects 3 rate cuts in 2024: 5 key highlights

Japan Trade Data

Japan’s exports rose 7.8% in February from the same month a year ago, faster than the 5.3% gain expected by economists in a Reuters poll. Imports rose 0.5% year-on-year versus the median estimate for a 2.2% increase. The trade balance came to a deficit of 379.4 billion yen ($2.52 billion), versus a median estimate for a deficit of 810.2 billion yen.

Dollar

The US dollar fell broadly after the Federal Reserve maintained its interest rate cut projections for the year, Reuters reported. The dollar index was flat at 103.23, after having slid more than 0.5% in the previous trading session.

Gold Price Today

Gold prices surged to a record high on Thursday after the US Fed decision. Spot gold gained 0.5% to $2,196.69 per ounce, after hitting an all-time high of $2,222.39 earlier in the session. US gold futures rallied 1.8% to $2,198.90 per ounce.

Oil Prices

Crude oil prices gained after US stockpiles fell. Brent oil, the global benchmark, rose 0.55% to $86.42 a barrel, climbing for the third time in four sessions, while West Texas Intermediate was near $82.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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