The Indian stock market indices, Nifty 50 and Sensex, are likely to open higher on Thursday following strong global cues.
The Asian markets traded in the green, while the US stocks ended sharply higher overnight after the US Federal Reserve kept interest rates unchanged. Hopes that the US central bank is done with rate hikes fueled optimism among investors.
The domestic equity indices ended lower on Wednesday, extending their losses for the second consecutive session.
The BSE Sensex closed 283.60 points, or 0.44%, lower at 63,591.33, while the broader NSE Nifty declined 90.45 points, or 0.47%, to 18,989.15.
“Markets on Thursday would react to the US Fed’s interest rate decision and economic data to be released during the day. The comments from Chair Jerome Powell will take the spotlight as it will provide insights into Fed’s next move. Also, investors would watch out for BOE’s interest rate decision,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key domestic and global market cues for Sensex today:
Asian Markets
Asia markets traded higher on Thursday following overnight gains on Wall Street after the US Federal Reserve decided to leave its benchmark interest rates unchanged.
Japan’s Nikkei 225 gained 1.22% and the Topix rose 0.95%. South Korea’s Kospi rallied 1.62%, while the Kosdaq jumped 2.10%.
Hong Kong’s Hang Seng index futures stood higher at 17,157 compared to the HSI’s close of 17,101.78.
Australia’s S&P/ASX 200 rose 1.17%.
Meanwhile, Gift Nifty was trading around 19,225 level as against Nifty futures previous close of 19,054, indicating a gap-up start for the Indian benchmark indices.
Wall Street
US stock market indices ended higher on Wednesday after the US Federal Reserve kept interest rates unchanged, while comments from its top official fueled optimism that rate hikes were done even though the central bank left the door open for more.
The Dow Jones Industrial Average rallied 221.71 points, or 0.67%, to 33,274.58, while the S&P 500 jumped 44.06 points, or 1.05%, to 4,237.86. The Nasdaq Composite ended 210.23 points, or 1.64%, higher at 13,061.47.
Among stocks, WeWork shares tanked 46.49% following media reports about the company’s plan to file bankruptcy next week.
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Advanced Micro Devices shares surged almost 10% after an upbeat chip sales forecast. Estee Lauder share price tumbled 18.9% after the beauty products maker cut its annual profit outlook.
Paycom Software shares crashed 38.5% after it projected for downbeat fourth-quarter revenue.
Match Group share price dropped 15.3% after it also forecast fourth-quarter revenue below estimates.
US Fed Policy
The US Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) left the benchmark interest rates unchanged in the range of 5.25% – 5.50%.
The Fed’s decision to hold its benchmark lending rate at 22-year high gives policymakers time to “assess additional information and its implications for monetary policy,” the central bank said in a statement.
Read here: US Fed Policy: FOMC votes unanimously to keep key rates unchanged at 5.25-5.5% for second straight meeting
The US central bank said that any future decisions on policy firming would “take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, as well as economic and financial developments.”
Japan announces $113-bln package to combat inflation
Japanese Prime Minister Fumio Kishida said the government will spend over 17 trillion yen ($113 billion) in a package of measures to cushion the economic blow from rising inflation, which will include tax cuts, Reuters reported.
To fund part of the spending, the government will compile a supplementary budget for the current fiscal year of 13.1 trillion yen, Kishida told reporters.
Reuters had earlier reported that the government was considering spending over 17 trillion yen for the package, which would include temporary cuts to income and residential taxes as well as subsidies to curb gasoline and utility bills.
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Dollar, Treasury yields fall
The US dollar fell broadly on Thursday, tracking a slide in US Treasury yields amid rising hopes that the US Federal Reserve was done with its aggressive monetary policy tightening cycle after it left rates unchanged. The US dollar index fell 0.11% to 106.34.
The two-year US Treasury yield, which typically reflects near-term interest rate expectations, slid to a nearly two-month low of 4.9250% on Thursday, while the benchmark 10-year yield fell to an over two-week low of 4.7070%.
The Japanese yen last stood at 150.44 per dollar, while Sterling rose 0.35% to $1.2192 and euro rose 0.18% to $1.0589.
GST collection jumps 13% YoY to ₹1.72 lakh crore
Goods and Services Tax (GST) revenue collection jumped by 13% YoY to ₹1.72 lakh crore in October this year, the second highest-ever GST revenue collection ever. Out of the total gross GST, ₹30,062 crore is CGST, ₹38,171 crore is SGST, ₹91,315 crore is IGST and ₹12,456 crore is cess.
The total revenue of Centre and the States in October stood at ₹72,934 crore for CGST and ₹74,785 crore for SGST.
(With inputs from Reuters)
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