Things about the Indian stock market that altered over night include: Compared to the previous closing of Nifty futures at 21,595, Gift Nifty was trading at about 21,620, suggesting a flat to positive start for the Indian stock market indices.
Indian stock market: In response to negative indications from the global market, the local equities market is anticipated to open on a quiet tone on Thursday.
The US Federal Reserve meeting minutes revealed that interest rates will stay high for an extended period of time, which caused Asian markets to trade down and US stocks to close lower overnight.
Sentiment is also likely to be affected by the increase in crude oil prices with the escalating geopolitical unrest in the Middle East.
On Wednesday, the benchmark indices saw a decrease in closing prices for the second straight day as investors booked profits on expensive equities.
The Nifty 50 closed 148.45 points, or 0.69%, lower at 21,517.35, while the Sensex dropped 535.88 points, or 0.75%, to conclude at 71,356.60.
Before the quarterly results are released, the market is likely to consolidate and stop, which could result in more stock-specific activity, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
These are today’s major global market cues for the Sensex:
Markets in Asia
Thursday’s trading saw a strong decrease in Asian markets, led by Japan, after Wall Street indices saw a sharp decline overnight.
On the first trading day of 2024, the Topix fell 1.25% while the Nikkei 225 of Japan fell 2.26%. The Kospi fell 0.64% and the Kosdaq fell 0.69% in South Korea. Futures for Hong Kong’s Hang Seng index suggested a recovery.
S&P/ASX 200 in Australia dropped 0.5%.
Present Nifty
Compared to the previous closing of Nifty futures at 21,595, Gift Nifty was trading at about 21,620, suggesting a flat to positive start for the Indian stock market indices.
American Stock Exchange
The minutes from the US Federal Reserve’s December meeting did not inspire confidence in the markets, as the US stock market indices ended lower on Wednesday amid prolonged profit-taking following a strong finish to 2023.
The S&P 500 fell 38.02 points, or 0.8%, to close at 4,704.81, while the Dow Jones Industrial Average down 284.85 points, or 0.76%, to 37,430.19. At 14,592.21, the Nasdaq Composite closed 173.73 points, or 1.18%, lower.
Megacaps that are susceptible to interest rates saw a decline in stock prices; Nvidia, Apple, and Tesla all had declines of 0.7% to 4%. Shares of Citigroup increased 1.1%.
Minutes of the US Federal Reserve
According to minutes of the US Federal Reserve’s December 12–13 policy meeting, as reported by Reuters, the central bank’s officials appeared more convinced at their meeting last month that inflation was beginning to stabilize, with “upside risks” lessened and growing concern about the potential harm that “overly restrictive” monetary policy might do to the economy.
Japan’s manufacturing output
In December, industry activity in Japan shrank at its fastest rate in ten months. The last hour Bank Jibun The purchasing managers’ index (PMI) for manufacturing in Japan decreased from 48.3 in November to 47.9 in December. Since the index reached 47.7 in February, this was the lowest reading.
Apple stock declines
The last four trading days saw an almost 5% decline in the price of Apple shares, which set off a slide that destroyed around $370 billion in market value. Apple’s stock has dropped since early this week, when analysts at Barclays Plc downgraded the company’s shares to underweight and stated that they anticipate future lackluster demand for iPhones.
Prices for oil rise
Following supply problems in Libya and heightened tensions in the Middle East, crude oil prices surged.
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After rising more than 3% on Wednesday, Brent crude oil increased by 0.22% to $78.42 a barrel, while US West Texas Intermediate (WTI) crude gained 0.40% to $72.99.
US currency and Treasury yields
Treasury rates reached 4% for the first time in the past two weeks on Wednesday, as the US dollar surged to a two-week high.
After earlier reaching a two-week high of 102.61, the dollar index continued to rise, up 0.2% at 102.45. Meanwhile, the 10-year yield fell to 3.90%, down 4.1 basis points (bps).
(With agency contributions)
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