The Indian stock market is set for a cautious opening today, influenced by a blend of global market movements. Here’s a breakdown of what transpired overnight and what to anticipate in today’s trading session:
Positive Global Sentiment Supports Indian Equities
The recent session witnessed a surge in the Indian stock market indices, propelled by optimistic global cues following the US Federal Reserve’s announcement of potential interest rate cuts. The Sensex closed with a gain of 0.75%, while the Nifty 50 settled higher by 0.79%, indicating a favorable momentum in the domestic equity market.
Global Market Cues for Sensex Today
Asian Markets: Asian markets displayed mixed trends, with Japan’s Nikkei 225 hitting a fresh all-time high, buoyed by an overnight rally on Wall Street. While Japan’s indices surged, South Korea’s Kospi and Kosdaq experienced marginal declines.
Gift Nifty Today: Gift Nifty traded around the 22,095 level, hinting at a subdued start for Indian equities compared to the previous close.
Wall Street: US stock indices reached record highs on Thursday, fueled by reassurances from the Federal Reserve regarding potential rate cuts. Major tech stocks like Micron Technology, Broadcom, and Nvidia witnessed notable gains, while Accenture faced a significant decline following a guidance cut.
Global Economic Indicators
Bank of England (BoE): The BoE maintained its stance on interest rates, keeping them unchanged at 5.25%, in line with market expectations. However, the committee vote reflected a split decision, indicating differing views on monetary policy.
US S&P Global Composite PMI: S&P Global reported a marginal dip in its US Composite PMI Output Index, reflecting slight moderation in economic activity across manufacturing and services sectors. While manufacturing expanded, the services sector witnessed a slight contraction.
Japan Inflation: Japan’s core inflation accelerated in January, marking the fastest growth in four months, driven primarily by an increase in consumer prices excluding fresh foods.
Accenture’s Revised Guidance
Accenture revised its revenue forecast for fiscal year 2024 downwards, citing economic uncertainties that may lead to reduced spending on consulting services. The IT services provider now expects a narrower revenue growth range of 1% to 3%, down from the previous forecast of 2% to 5%.
Oil Prices
Crude oil prices experienced a slight decline amidst speculation of a potential ceasefire in Gaza. Brent crude futures retreated to $85.53 a barrel, while US crude futures dipped to $80.84 per barrel.
In conclusion, the Indian stock market remains influenced by a myriad of global factors, with investors closely monitoring developments in major economies and key sectors. While optimism persists regarding potential interest rate cuts and economic recovery, caution prevails amid uncertainties surrounding geopolitical tensions and corporate earnings outlook. Investors are advised to stay informed and seek expert guidance to navigate through volatile market conditions effectively.
