Indian stock market: The domestic equity indices are expected to open on a flat note Thursday amid positive global cues. Investors await the release of Q3 results from major IT companies later today, marking the beginning of the earnings season for the third quarter of FY24.
Asian markets traded higher, while the US stocks ended higher overnight led by communications stocks and megacaps.
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Investors will now focus on the inflation data in the US and India which could help determine the monetary policy path for the central banks.
On Wednesday, the equity benchmark indices ended higher led by gains in IT and metal stocks ahead of the major Q3 earnings and the important inflation readings this week that could impact the interest rate outlook.
The Sensex gained 271.50 points, or 0.38%, to close at 71,657.71, while the Nifty 50 settled 73.85 points, or 0.34%, higher at 21,618.70.
“FII flows have been erratic this year with 50% of the days seeing negative flows. The start of the Q3 earnings season, coupled with uncertainty in the Middle East and the recent increase in Russian aggression should dominate the market news flow in the coming weeks,” said Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher tracking overnight gains on Wall Street, with Japanese indices extending record-breaking rally.
Japan’s Nikkei 225 rose 1.88% at the open, crossing the 35,000 mark briefly for the first time since February 1990. The Topix rallied 1.49% to hit fresh 33-year highs.
South Korea’s Kospi rose 0.17%, while Kosdaq was up 0.72%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty
Gift Nifty was trading around 21,717 level as compared to Nifty futures’ previous close of 21,723, indicating a flat start for the Indian benchmark indices.
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US Stock Market
US stock market indices ended higher on Wednesday led by a rally in megacap stocks. Investors looked ahead to inflation data and major bank earnings later in the week.
The Dow Jones Industrial Average gained 170.57 points, or 0.45%, to 37,695.73, while the S&P 500 rose 26.95 points, or 0.57%, to 4,783.45. The Nasdaq Composite ended 111.94 points, or 0.75%, higher at 14,969.65.
The benchmark 10-year Treasury note yield held near 4%and a $37 billion auction of the notes drew above-average demand.
Among stocks, Meta Platforms shares gained 3.65%, while Nvidia stock price hit a record high and closed up 2.28%.
US Federal Reserve
US Federal Reserve Bank of New York President John Williams said that it was still too soon to call for rate cuts as the central bank still has some distance to go on getting inflation back to its 2% target. The policy maker also said that banking sector liquidity levels do not signal any near-term need for the Fed to stop the contraction of its balance sheet, Reuters reported.
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Microsoft challenges Apple as world’s most valuable company
Apple faces a potential challenge from Microsoft for the title of the world’s most valuable company as concerns about iPhone sales have led to a recent decline in Apple share price.
After a 48% surge in 2023, Apple shares fell 4% in 2024 so far on worries over smartphone demand. In contrast, Microsoft share price gained 2% this year after a 57% surge in 2023.
On Wednesday, Apple’s stock dropped by 0.4%, while Microsoft gained 1.6%, narrowing the margin between the two companies. Currently, Apple’s market value stands at $2.866 trillion, slightly ahead of Microsoft’s $2.837 trillion. Apple’s market cap reached its peak at $3.081 trillion on December 14, while Microsoft’s value reached $2.844 trillion on November 28.
Also Read: ‘Landmark decision’: US regulator approves Bitcoin ETFs, boosting cryptocurrency market
US SEC approves bitcoin ETFs
The US Securities and Exchange Commission (SEC) approved the first US-listed exchange traded funds (ETFs) to track bitcoin. The US SEC approved 11 applications, including from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck, among others. Some products are expected to begin trading as early as Thursday. Bitcoin price topped $47,000 briefly.
(With inputs from Reuters)
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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