Indian stock market: The domestic equity indices are expected to open on a steady note amid mixed global market cues.
The Asian markets traded flat while the US stock market ended mixed overnight ahead of the key economic data that could shed light on the possible timing of a US Federal Reserve interest rate cut.
Expectations for a cut of at least 25 basis points (bps) by the Fed at its June meeting stand at 59.1%, down from the near certainty at the end of January, according to the CME Group’s FedWatch tool.
Investors will now watch for Thursday’s January personal consumption expenditures price index (PCE), the Fed’s preferred inflation gauge.
On Tuesday, the Indian stock market indices ended higher, snapping a two-day correction.
The Sensex gained 305.09 points, or 0.42%, to close at 73,095.22, while the Nifty 50 settled 76.30 points, or 0.34%, higher at 22,198.35.
“Domestic equities are consolidating in a range with every dip being bought showing strength at lower levels. Overall, we expect the market to trade in range with positive bias. Globally, investors would watch out for US and Europe Consumer Confidence Data,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded flat on Wednesday as investors awaited key US inflation and China data later this week.
Japan’s Nikkei 225 and Topix were flat, while South Korea’s Kospi gained 0.1% and the Kosdaq rose 1.3%. Hong Kong’s Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 22,226 level, as compared with Nifty futures’ previous close of 22,196, indicating a positive start for the Indian stock market indices.
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Wall Street
The US stock market indices ended near flat on Tuesday ahead of inflation and other economic data.
The Dow Jones Industrial Average fell 96.82 points, or 0.25%, to 38,972.41, while the S&P 500 rose 8.65 points, or 0.17%, to 5,078.18. The Nasdaq Composite ended 59.05 points, or 0.37%, higher at 16,035.30.
Among stocks, UnitedHealth ended down 2.27%, while Viking Therapeutics shares jumped 121.02%. Amgen shares dropped 2.75%.
US Consumer Confidence
US consumer confidence retreated in February after three straight monthly increases. The Conference Board said that its consumer confidence index slipped to 106.7 this month from a downwardly revised 110.9 in January. Economists polled by Reuters had forecast the index little changed at 115.0 from the previously reported 114.8.
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US Durable Goods Orders
Orders for long-lasting US manufactured goods fell by the most in nearly four years in January. The Commerce Department’s Census Bureau said the orders for durable goods plunged 6.1% last month amid a sharp drop in commercial aircraft bookings. That was the largest decline since April 2020. Economists polled by Reuters had forecast durable goods orders tumbling 4.5%. Orders fell 0.8% year-on-year in January.
US Dollar
The US dollar held steady after the release of durable goods data overnight. The US dollar index, which measures the currency against a basket of peers, hovered around 103.82.
(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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