The Gift Nifty was trading at almost 26,000, which was a premium of over 10 points over the previous closing of the Nifty futures. This suggests that the Indian stock market indexes have had a flat start. There are ten significant changes that occurred in the market last night:
Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open on a cautious note on Tuesday following mixed cues from global peers after hawkish comments from the US Federal Reserve Chairman Jerome Powell.
The US stock market finished higher, with the Dow Jones and the S&P 500 reaching all-time closing highs. Asian markets saw mixed trading.
According to CME Group’s FedWatch Tool, traders reduced their forecasts for a 50 basis-point (bp) decrease to 35.4% from 53.3% a day earlier, but they are still positive that the Fed will cut again at the next policy making meeting in November.
Weak global signals caused the Indian stock market indexes to conclude Monday more than a percent down overall.
The Nifty 50 closed 368.10 points, or 1.41%, down at 25,810.85, while the Sensex fell 1,272.07 points, or 1.49%, to end at 84,299.78.
“After one side move over the past few weeks, we anticipate a near-term consolidation of the market.” Markets will now be looking to the Q2FY25 result season in addition to global cues for guidance in the upcoming month. Sector-wise, the emphasis may move to the banking and IT sectors when businesses begin to release their pre-quarterly reports this week. As OEMs release their monthly sales figures, the auto sector will also be of interest, according to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Asian Markets
On Monday, Asian markets saw uneven trading following US Fed Chair Jerome Powell’s remarks that suggested fewer interest rate reductions.
The Topix increased by 0.88%, while Japan’s Nikkei 225 gained 1.07% following a 4.8% decline in the previous session. Hong Kong, the Chinese mainland, and South Korea all have closed markets.
Gift Nifty Today
Gift Nifty was trading around 26,000 level, a premium of nearly 10 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.
India Fiscal Deficit, CAD
India’s fiscal deficit for the months of April through August was ₹4.35 lakh crore, or 27% of the FY25 projected amount. The most recent estimate of the fiscal deficit is less than the ₹6.43 lakh crore recorded in the same time of the preceding fiscal year.
Wall Street
Monday’s closing of the US stock market saw gains, with the Dow Jones and the S&P 500 recording all-time highs.
The S&P 500 increased 24.31 points, or 0.42%, to 5,762.48 while the Dow Jones Industrial Average gained 17.15 points, or 0.04%, to 42,330.15. At 18,189.17, the Nasdaq Composite closed 0.38%, or 69.58 points, higher.
According to Reuters, the S&P 500 increased by 2% for the month, marking the fifth consecutive month of growth. The S&P 500 increased 5.5%, the Nasdaq gained 2.6%, and the Dow increased 8.2% over the quarter.
Jerome Powell
Following fresh statistics that increased confidence in continued economic growth and consumer spending, US Federal Reserve Chair Jerome Powell said the central bank was not “in a hurry” and would probably remain with quarter-percentage-point interest rate decreases going forward, according to Reuters.
“This committee does not feel that it needs to lower rates as soon as possible. Powell stated that in order to keep inflation moving in the direction of the Fed’s 2% objective while keeping the unemployment rate low, “We will do what it takes in terms of the speed with which we move.”
Japan PMI
September industry activity in Japan remained muted, according to a private sector survey. The purchasing managers’ index (PMI) for manufacturing in Japan, as published by the final au Jibun Bank, decreased to 49.7 in September from 49.8 in August, while it increased from 49.6 in the flash reading.
SEBI Board Meet
The Sebi board approved 17 proposals, which included lowering the eligibility requirements and compliance requirements for investment advisers and research analysts, introducing a new asset class for investors with high risk profiles, and loosening the regulatory framework for passively managed mutual fund schemes.
India’s current account deficit (CAD) increased from a surplus of 1% in the March quarter of FY24 to 1.1% of GDP, or $9.7 billion, in the April–June quarter of the current fiscal year (Q1FY25).
Core Sector Output
Six of India’s eight major industries saw negative growth in August, contributing to the country’s declining production in these areas. August saw a 1.8% annual decline in the index of eight core industries, following a 6.1% surge in July.
Dollar, Treasury Yields
On Tuesday, the US dollar appreciated vs its main competitors. The dollar index increased by 0.07% to 100.85 on Monday following a 0.3% gain on Monday. Up 0.23%, it was worth 143.95 yen.
After peaking at 3.672% for two weeks, the yield on the US two-year Treasury increased by 8.2 basis points to 3.645%. The 30-year rates increased 2.7 basis points to 4.124%, while the benchmark 10-year yield increased 3.9 basis points to 3.790%.
Gold Prices Today
The price of gold remained stable following an almost 1% decline in the previous session. US gold futures slipped 0.1% to $2,657.50 per ounce, while spot gold remained unchanged at $2,635.89.
