Indian stock market: The domestic equity market is expected to open with gains on Thursday amid mixed global cues.
Asian markets traded mixed, while US stock market indices ended mostly higher overnight after the release of the minutes of the last US Federal Reserve policy meeting.
The US Fed meeting minutes showed most policymakers were concerned about risks of cutting interest rates too soon, with broad uncertainty about how long borrowing costs should remain at their current level, Reuters reported.
Investors also reacted to Nvidia’s fourth quarter earnings that beat estimates along with its upbeat earnings forecast for the current quarter.
On Wednesday, the Indian stock market indices, Sensex and Nifty succumbed to profit and ended over half a percent lower amid weak global cues, snapping a six day gaining streak.
The Sensex dropped 434.31 points, or 0.59%, to close at 72,623.09, while the Nifty 50 settled 141.90 points, or 0.64%, lower at 22,055.05.
“After gaining for six consecutive days, Nifty saw some profit booking at higher levels. However, the overall structure remains positively supported by strong buying by DIIs. Some of the other key events to watch out for are Europe inflation data, RBI meeting minutes and US existing home sales data,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Thursday following overnight gains on Wall Street with Japan’s Nikkei nearing record high.
Japan’s Nikkei 225 gained 1.7%, while South Korea’s Kospi rose 0.5% higher. Hong Kong’s Hang Seng index futures indicated a weaker start.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 22
Gift Nifty Today
Gift Nifty was trading around 22,135 level, as compared with Nifty futures’ previous close of 22,034, indicating a gap-up start for the Indian stock market indices.
Wall Street
The US stock market indices ended mixed on Wednesday, with the Nasdaq closing lower for a third straight session.
The Dow Jones Industrial Average gained 0.13% to 38,612.24, while the S&P 500 rose 0.13% to end at 4,981.80. The Nasdaq closed 0.32% lower at 15,580.87.
Among stocks, Nvidia shares jumped 10% after-hours, while Palo Alto Networks plunged 28.44%.
US Fed minutes
Most Federal Reserve officials last month flagged concerns over moving too quickly to cut interest rates, indicating such risks outweighed keeping borrowing costs elevated for too long, Bloomberg reported.
The minutes of the January 30-31 Federal Open Market Committee meeting showed policymakers remain attentive to the trajectory of inflation, with some worried that progress toward the central bank’s 2% target could stall. Together, the record reinforced the Fed’s preference for more evidence that inflation is firmly on a downward path.
Read here: Fed minutes show officials expressed caution about lowering rates too quickly
Nvidia Results
Nvidia share price surged 10% after-hours after the company reported fourth-quarter revenue of $22.10 billion, up from $6.05 billion, and beating estimates of $20.62 billion. Adjusted for certain items, fourth-quarter earnings were $5.16 a share, compared with estimates of $4.64 a share.
Nvidia forecast first-quarter revenue growth of 233%, ahead of Wall Street expectations of 208% growth. The company forecast revenue for the current quarter of $24.0 billion, plus or minus 2%. It expects first-quarter adjusted gross margin to be 77%, plus or minus 50 basis points.
China tightens grip on stocks
China has banned major institutional investors from reducing equity holdings at the open and close of each trading day, part of the government’s most forceful attempt yet to prop up the nation’s $8.6 trillion stock market. Firms affected by the ban are unable to sell more shares than they buy during the first and last 30 minutes of trading, Bloomberg reported.
Read here: China tightens grip on stocks with net sale ban at open, close
Japan composite PMI
Japan’s factory activity extended declines and service sector growth eased in February, surveys showed on. The au Jibun Bank flash Japan composite PMI, which combines both manufacturing and service sector activity, eased to 50.3 in February from 51.5 in January.
South Korea holds rates steady
South Korea’s central bank left interest rates unchanged for a ninth straight meeting on Thursday. The Bank of Korea (BOK) held its key policy rate at a 15-year high of 3.50% as expected. The BOK kept its economic growth forecast for this year unchanged at 2.1% and inflation at 2.6%.
Cabinet decisions
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at ₹340 per quintal at a sugar recovery rate of 10.25%. The Union Cabinet also approved the amendment in Foreign Direct Investment (FDI) policy on space sector.
Read here: Union Cabinet approves hike in sugarcane FRP by ₹25 to ₹340 per quintal amid farmers’ protest
Oil prices
Crude oil prices rose 1% on Wednesday as geopolitical tensions raged on in the Middle East. US West Texas Intermediate crude futures (WTI) rose 1.1%, to settle at $77.91 a barrel, while Brent crude rose 0.8% to $83.03 a barrel.
(With inputs from Agencies)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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