Before the Market Opens: Indian markets are likely to open on a positive note on Friday following gains in Asian peers after Wall Street hit record closing highs on rate-cut optimism. Meanwhile, Gift Nifty traded 15 points higher, indicating a positive start for benchmark Nifty. Let’s look at some key indicators before the market opens today:
Wall Street’s three major stock indexes on Thursday hit record closing highs for the second day in a row after the Federal Reserve reassured investors about the outlook for rates this year while chip supplies rose following Micron Technology’s upbeat forecast. The three major indexes also hit fresh intraday record highs earlier Thursday and the Dow ended the day less than 1% away from 40,000 for the first time. The Dow Jones Industrial Average rose 269.24 points, or 0.68% to 39,781.37, the S&P 500 gained 16.91 points, or 0.32%, to 5,241.53 and the Nasdaq Composite gained 32.43 points, or 0.184 %, or 0.184.4%.
Asian shares were close to a weekly gain on Friday and the Nikkei charged to a record high, riding a rally in its global counterparts after a surprise rate cut by the Swiss National Bank had investors betting who could be next. The SNB’s 25 basis point rate cut on Thursday proved a shot in the arm for global risk sentiment as markets raced ahead to bet that major central banks will lower borrowing costs this year. MSCI’s broadest index of Asia-Pacific shares outside Japan faced some gains in early trade on Friday after jumping nearly 2% in the previous session, and was last 0.17% lower. Other benchmarks in Asia also scaled new highs, with Japan’s Nikkei and the Taiwan-weighted index charging to record highs. Both were on track for weekly gains of nearly 6% and 3%, respectively. South Korea’s KOSPI similarly hit a two-year high.
On Thursday, the Indian stock market benchmark indices ended with strong gains led by cross-la buying amid positive global cues after the US Federal Reserve signaled three interest rate cuts this year. The Sensex jumped 539.50 points, or 0.75%, to close at 72,641.19, while the Nifty 50 settled 172.85 points, or 0.79%, higher at 22,011.95.
At 8:15 am, Gift Nifty was trading 15 points or 0.07 percent higher at 22,057, indicating a positive opening for the Indian markets.
Oil prices fell in early Asian trade on Friday on the possibility of a looming Gaza ceasefire that could ease global supply, while a stronger US dollar and volatile gasoline dampened demand sentiment. Brent crude futures fell 18 cents to $85.60 a barrel by 0011 GMT. U.S. crude futures shed 19 cents to $80.88 a barrel.
The Bank of England decided to keep interest rates unchanged at 5.25% for a fifth straight meeting on Thursday. The BoE’s interest rate committee voted 8-1 to keep borrowing costs at their 16-year high of 5.25%. Most economists polled by Reuters expected one member of the Monetary Policy Committee (MPC) to continue voting for an increase in the Bank Rate.
Accenture’s share price plunged 9% after the company cut its revenue forecast for fiscal year 2024, as an uncertain economy is likely to prompt clients to limit spending on their consulting services. The IT service provider now expects full-year revenue growth in the range of 1% to 3%, from its previous forecast of 2% to 5%.
Gold prices rose on Friday and were set for a fourth weekly increase in five after the US Federal Reserve kept its interest rate projections unchanged for the year, boosting investor sentiment. Spot gold was up 0.1% at $2,183.93 an ounce, as of 0117 GMT, after hitting an all-time high on Thursday. Bullion is up 1.3% so far this week.
Foreign institutional investors (FIIs) sold stocks net ₹1,826.97 crore, while domestic institutional investors (DIIs) bought ₹3,208.87 crore shares on March 21, provisional data from the NSE showed.
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Published: 22 Mar 2024, 08:25 IST