The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a steady note on Wednesday, following strong cues from global markets, amid cautiousness over the ongoing US-Iran war in the Middle East.
Asian markets traded higher, while the US stock market gained overnight, as investors now focus on the US Federal Reserve’s monetary policy and interest rate decision.
The US Fed started its two-day monetary policy meeting on Tuesday and traders expect the Fed Chair Jerome Powell-led FOMC to keep borrowing costs unchanged in its decision on Wednesday. Rate futures suggest expectations of one 25-basis-point cut toward the end of the year, according to LSEG-compiled data, down from around two before the war.
On Tuesday, the Indian stock market ended with healthy gains for the second consecutive session.
The Sensex jumped 567.99 points, or 0.75%, to close at 76,070.84, while the Nifty 50 settled 172.35 points, or 0.74%, higher at 23,581.15.
“Markets will closely track developments in West Asia and movements in crude oil prices. While the near-term recovery may sustain, further upside will depend on easing geopolitical risks,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Wednesday, following overnight gains on Wall Street, as investors await the US Federal Reserve’s interest rate decision. Japan’s Nikkei 225 gained 1.38%, and the Topix rose 0.95%. South Korea’s Kospi rallied 2.8% while the Kosdaq jumped 1.66%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 23,639 level, a premium of nearly 21 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Tuesday as the Federal Reserve began its two-day policy meeting amid investors’ worries about high oil prices and the US-Iran war.
The Dow Jones Industrial Average rose 0.10% to 46,993.26, while the S&P 500 gained 0.25% to end the session at 6,716.09. The Nasdaq closed 0.47% higher at 22,479.53.
Nvidia stock price fell 0.69%, Amazon shares gained 1.63%, Apple share price rose 0.56%, while Tesla stock price added 0.94%. Delta Air Lines stock rallied 6.56%, American Airlines Group shares gained 3.5% and United Airlines share price rose 3.2%.
Norwegian Cruise Line Holdings climbed 2.17%, Expedia Group stock price jumped 4.23%, Blackstone share price rallied 4.56%, Apollo Global gained 5.3% and KKR rose 3.3%.
US-Iran War
The US and Israel kept up attacks overnight, with Iran confirming the death of national security chief Ali Larijani. Tehran continued to strike energy infrastructure in countries across the Persian Gulf region, while shipping through the Strait of Hormuz remained at a near-halt.
Japan Trade Surplus
Japan’s exports by value rose 4.2% year-on-year (YoY) in February, data showed, exceeding a median market forecast for a 1.6% increase. Imports rose 10.2% YoY last month, compared with market forecasts for an 11.5% increase. As a result, Japan recorded a trade surplus of 57.3 billion yen ($360.65 million) in February, compared with the forecast of a deficit of 483.2 billion yen.
Crude Oil Prices
Crude oil prices fell after sources citing American Petroleum Institute figures showed an increase in US crude inventories. Brent futures dropped 1.11% to $102.27 a barrel, while US West Texas Intermediate crude declined 1.6% to $94.67.
Gold Rate Today
Gold prices were steady as investors kept to the sidelines ahead of the US Federal Reserve’s policy decision. Spot gold price was little changed at $5,003.77 per ounce, while US gold futures for April delivery held steady at $5,008.70. Spot silver price rose 0.2% to $79.46 per ounce.
Dollar
The dollar held losses. The dollar index, which measures the greenback against a basket of currencies, traded at 99.56 after a two-day decline. The yen strengthened 0.06% to 158.91 per dollar. The euro was little changed at $1.1538, and Sterling held steady to $1.3353.
(With inputs from Reuters)