Muted Start for Indian Indices Amid Global Cues
Indian stock market indices are expected to open on a subdued note on Thursday, reflecting mixed signals from global markets. The Gift Nifty, trading around the 24,750 mark, exhibited a modest premium of 15 points over the Nifty futures’ previous close, suggesting a cautious start. On Wednesday, the domestic benchmarks broke their three-day losing streak, with the Sensex edging up by 16.09 points to 81,526.14 and the Nifty 50 gaining 31.75 points to close at 24,641.80.
Analysts project a broad trading range for the market with a slight positive bias, buoyed by Foreign Portfolio Investment (FPI) inflows and encouraging news on government spending. Key economic indicators, including India’s Consumer Price Index (CPI) and industrial production data for November, alongside the U.S. Producer Price Index (PPI), are anticipated to influence investor sentiment further.
Nasdaq Milestone and U.S. Inflation Trends
On Wall Street, the Nasdaq Composite soared past the 20,000-point benchmark for the first time, ending the session 1.77% higher at 20,034.89. A surge in technology stocks, including Tesla (+6%), Nvidia, Alphabet, and Amazon, underpinned the rally. The global market’s influence was evident as the Dow Jones Industrial Average slipped by 99.27 points to 44,148.56, while the S&P 500 climbed 0.82% to 6,084.19.
November’s inflation data fueled hopes of a rate cut by the U.S. Federal Reserve, with the Consumer Price Index (CPI) rising by 0.3%, the highest monthly increase in seven months. Year-over-year inflation stood at 2.7%, aligning with market expectations. This data bolstered the probability of a 25-basis-point rate cut at the Fed’s upcoming meeting, now priced in at over 96% according to the CME FedWatch Tool.
Treasury yields also rose, reflecting the widening U.S. budget deficit and strong demand for long-term government bonds. The benchmark 10-year note yield increased to 4.271%, and the dollar index climbed to a two-week high of 106.68. Gold prices remained steady, gaining 0.2% to $2,700.52 amid rate cut speculations.
Asian Markets Gain as Investors Eye Economic Data
Asian equities traded higher, buoyed by the rally in U.S. tech stocks. Japan’s Nikkei 225 rose 1.7%, while the Topix added 1.3%. South Korea’s Kospi and Kosdaq indices advanced by 1% and 1.2%, respectively. Hong Kong’s Hang Seng futures signaled a robust opening.
As global market investors digest key economic data and policy cues, the Indian markets are poised for measured trading sessions. “Markets are likely to stay range-bound, with intermittent positive momentum supported by optimistic FPI flows and government expenditure,” said Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services. While global economic signals present mixed implications, the alignment of domestic and international trends will guide the near-term trajectory of the Indian stock market.
