Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday following positive cues from global peers.
Asian markets traded higher, while the US stocks ended mostly in the green after the US Federal Reserve policy decision and inflation data.
The US central bank kept interest rates unchanged for the seventh consecutive meeting and signalled one rate cut of 25 basis points (bps) this year. Softer than expected US inflation data cheered markets.
On Wednesday, the Indian stock market ended higher, primarily driven by favourable global cues, with the benchmark Nifty 50 hitting record high during the session.
The Sensex gained 149.98 points, or 0.20%, to close at 76,606.57, while the Nifty 50 settled 58.10 points, or 0.25%, higher at 23,322.95.
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“Nifty is witnessing consolidation for the past three days in absence of fresh domestic triggers while cautiously awaiting US CPI and US Fed policy outcome. Market is likely to consolidate in the near term with a positive bias,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Thursday following overnight gains on Wall Street after the US Fed interest rate decision.
Japan’s Nikkei 225 rose 0.56%, while the Topix was flat. South Korea’s Kospi rallied 1.39%, while the Kosdaq gained 0.6%. Hong Kong Hang Seng index futures indicated higher opening.
Gift Nifty Today
Gift Nifty was trading around 23,460 level, a premium of nearly 100 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
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Wall Street
The US stock market ended mixed on Wednesday, with the S&P 500 and Nasdaq posting record closing highs for a third straight day, after the Federal Reserve policy outcome and softer than expected inflation data.
The S&P 500 gained 45.71 points, or 0.85%, to 5,421.03 and the Nasdaq Composite surged 264.89 points, or 1.53%, to 17,608.44. The Dow Jones Industrial Average ended 35.21 points, or 0.09%, lower at 38,712.21
Among stocks, Apple shares rose 2.9% and the iPhone maker briefly once again became the world’s most valuable, dethroning Microsoft from the top spot. Oracle shares jumped 13.3%.
US Federal Reserve
The US Federal Reserve kept its benchmark interest rate unchanged between 5.25% and 5.50% for the seventh straight meeting and said that “modest” progress had been made toward its long-term inflation target of 2%. The Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) officials signaled that they expect to cut their benchmark interest rate just once this year.
Read here: US Fed holds key rates elevated at 23-year high, expects single 0.25% reduction in 2024; 5 key takeaways from Fed Policy
US Inflation
US consumer prices were unexpectedly unchanged in May as the annual consumer price index (CPI) came in at 3.3% in May, down 0.1 percentage point from April’s 3.4%, the Labor Department said. The monthly inflation rate remained flat at 0.0%, down from 0.3% in April. Economists polled by Reuters had forecast the CPI would edge up 0.1% in May.
India Inflation & IIP
India’s retail inflation based on the consumer price index (CPI) fell to 4.75% in May from 4.83% in April, touching the lowest in a year, statistics ministry data showed. Inflation has stayed below 5% since March.
Meanwhile, factory output rose 5% in April, marking a steady climb from 4.9% in March and 5.6% in February. Over the April-March (FY24) period, factory output expanded by 5.9%, slightly above the previous year’s 5.2% growth.
Read here: Retail inflation eases, factory output ticks higher in May, boosting Indian economy
US Treasury Yields
US Treasury yields dropped on Wednesday after Fed policy and as inflation reading came in cooler than expected. The yield on the benchmark 10-year US Treasury note was down 8 basis points, at 4.322% after hitting 4.25%, its lowest level since April 1. The yield on the 30-year bond shed 5.8 basis points to 4.477%. The two-year US Treasury yield fell 7.6 basis points to 4.758%, after falling to 4.67%, its lowest since April 5.
Oil Prices
Crude oil prices fell after the Fed policy and as US crude stockpiles rose more than expected last week.
Brent crude futures fell 0.17% to $82.46 a barrel, and US West Texas Intermediate (WTI) crude futures declined 0.20% to $78.34. Both benchmarks had gained about 0.8% in the previous session.
(With inputs from Reuters)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
