The Indian stock market is expected to open higher on Thursday amid positive global cues.
Asian markets gained following overnight rally on Wall Street as weak US GDP data resurfaced expectations of a pause in interest rate hike by the US Federal Reserve.
Meanwhile investors will watch for India’s April-June quarter GDP data set to be released later today.
India’s gross domestic product (GDP) likely accelerated to 7.7% in the Q1FY24, recording the fastest annual pace in a year, driven by the services sector and greater capital expenditure.
Here are key global market cues for Sensex today:
Asian Markets
Asian stock markets traded higher following overnight gains on Wall Street. Japan released its factory output data for July, while China will release the data for August.
Japan’s Nikkei 225 rose 0.33% and the Topix gained 0.31%. South Korea’s Kospi added 0.23% and the Kosdaq was up 0.36%.
Hong Kong’s Hang Seng index futures were higher at 18,544, compared with the HSI’s close of 18,482.86.
Australia’s S&P/ASX 200 gained 0.11%.
Meanwhile, Gift Nifty was trading at 19,373 as against Nifty futures’ previous close of 19,340, indicating a mildly positive opening for the Indian benchmark indices.
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Wall Street
The US stock market ended higher on Wednesday after the weak GDP data raised expectations of a pause in interest rate hike by the Federal Reserve.
The S&P 500 index reached its highest in nearly three weeks, while the Nasdaq logged its highest close since August 1.
The S&P 500 rose 0.38% to end at 4,514.87, while the Nasdaq gained 0.54% to 14,019.31. The Dow Jones Industrial Average ended 0.11% higher at 34,890.24.
Among stocks, Nvidia share price rose 1% to close at record high. Mastercard and Visa shares gained around 0.5% each after a report said the companies were preparing to raise credit card fees.
HP Inc share price plunged 6.6% after the company cut its annual forecast due to slowing demand.
US Q2 GDP growth revised down to 2.1% annual rate from 2.4%
The US economy expanded at a 2.1% annual pace in the April-June quarter, compared to the initial estimate of 2.4%, according to official revised estimates released on Wednesday, August 30. The US government had previously estimated that the economy expanded at a 2.4% annual rate last quarter.
The US Commerce Department’s second estimate of growth last quarter marked a slight acceleration from a 2% annual growth rate from January through March.
Read here: US Q2 GDP growth revised down to 2.1% annual rate from 2.4%
Japan’s factory output falls 2.0% MoM in July
Japan’s seasonally adjusted factory output fell 2.0% in July from the previous month, worse than a median market forecast for a 1.4% decline, Reuters reported.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect seasonally adjusted output to rise 2.6% in August and increase 2.4% in September, data showed on Thursday.
Chinese banks asked to step up lending to private sector
China’s central bank has urged banks to step up lending to private companies during a meeting on Wednesday with financial regulators, corporations and lenders, the state-owned Securities Times reported.
Relevant financial departments are formulating policy documents with this goal in mind, the newspaper quoted Ma Jianyang, deputy head of the financial market department at the People’s Bank of China (PBOC) as saying.
The central bank will ask financial institutions to set annual targets for services to private firms and vigorously expand loans to companies that are borrowing for the first time, it said, Reuters reported.
(With inputs from Reuters)
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