Indian stock market: The domestic equity indices are expected to open on a cautious note on Thursday amid weakness in global peers as investors watch out for key economic data releases.
Asian markets traded lower while the US stock indices closed in the red overnight ahead of the key US inflation data. The US fourth quarter GDP growth was revised slightly lower, while India’s GDP data for the third quarter of FY24 will be released today.
Investors will keenly watch out for the US personal consumption expenditures (PCE) price index, the US Federal Reserve’s preferred inflation gauge, for clues on the timing of an interest rate cut from the Fed.
Evidence of stubborn inflation in recent data on consumer and producer prices, a resilient US economy, and commentary from some Fed officials have caused the market to dial back expectations for the Fed’s first rate cut to June from March, Reuters reported.
On Wednesday, the Indian stock market indices ended more than a percent lower, dragged by selling across the sectors, with midcaps and smallcaps getting the hardest beating.
The Sensex plunged 790.34 points, or 1.08%, to close at 72,304.88, while the Nifty 50 slipped 247.20 points, or 1.11%, and ended at 21,951.15.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 29
“Markets turned cautious ahead of the release of India’s Q3 GDP data on Thursday and the F&O monthly expiry. Further, US Q4 GDP preliminary reading and core PCE data would keep investors busy. We expect the market to remain volatile amid key events,” 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 lower on Thursday tracking overnight losses on Wall Street as investors await key economic data from the US and China.
Japan’s Nikkei 225 declined 0.7% and the Topix dropped 0.3%. South Korea’s Kospi dipped 0.8%, while the Kosdaq fell 0.6%. Hong Kong’s Hang Seng index futures indicated a marginally higher open.
Gift Nifty Today
Gift Nifty was trading around 21,956 level, up more than 30 points from Nifty futures Wednesday close, indicating a mildly positive start for the Indian stock market indices.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 29
Wall Street
The US stock market indices ended marginally lower on Wednesday, a day ahead of a key inflation data that is expected to influence expectations for the timing of an interest rate cut from the Federal Reserve.
The Dow Jones Industrial Average eased 23.39 points, or 0.06%, to 38,949.02, while the S&P 500 fell 8.42 points, or 0.17%, to close at 5,069.76. The Nasdaq Composite ended 87.56 points, or 0.55%, lower at 15,947.74.
Among stocks, UnitedHealth shares declined 2.95%, Applied Materials shares dropped 2.62%, and Beyond Meat stock price spiked 30.72%.
US GDP
The US economy expanded at a slightly slower rate at the end of last year as the gross domestic product (GDP) grew at a revised 3.2% annualized pace in the fourth quarter, compared with a prior estimate of 3.3%.
In the full year 2023, US GDP growth was 2.5%, marking an acceleration from 2022.
Consumer spending advanced at a 3% rate, faster than initially estimated, Bureau of Economic Analysis figures showed.
Read here: US fourth quarter GDP growth revised slightly lower
Japan’s Factory Output
Japan’s factory output fell 7.5% in January from the previous month, as against the median market forecast for a 7.3% drop, Reuters reported. Separate data showed Japanese retail sales rose 2.3% in January from a year earlier, marking a 23rd straight month of increase.
Bitcoin Price Today
Bitcoin prices surpassed $63,000 overnight led by a surge in demand from the new US bitcoin exchange-traded funds. The price of the world’s largest cryptocurrency is up more than 45% this month, its highest gain since December 2020. Bitcoin price jumped as much as 13% to $63,968 — its first trip above $60,000 since November 2021 — before it pared gains.
Read here: Bitcoin set for biggest monthly gain since 2020 after jumping 45% to $63,933 this February
Nifty indices rejig
The National Stock Exchange (NSE) announced that Shriram Finance will replace UPL in the Nifty 50 Index, while Jio Financial Services will be included in the Nifty Next 50 index effective from March 28, 2024.
Read here: Shriram Finance to be included in Nifty50, UPL excluded — check full list here
US Dollar
The US dollar was firm ahead of the key inflation data that could ruffle the interest rate outlook. The dollar index, which tracks the greenback against six other major currencies, is up 0.3% to 103.92.
On the dollar, the yen touched 150.68 in early Asia trade, closer to October’s weakest level at 151.74, Reuters reported.
(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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