Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open on a flat note Thursday, following mixed cues from global markets.
Asian markets traded mostly lower, while the US stock market ended with modest gains overnight, with the Nasdaq posting record high for the fifth session in six.
On Wednesday, the Indian stock market ended marginally higher, with the benchmark Nifty 50 holding above 25,200 level.
The Sensex rose 63.57 points, or 0.08%, to close at 82,634.48, while the Nifty 50 settled 16.25 points, or 0.06%, higher at 25,212.05.
“With more earnings releases due and global data ahead, markets may remain range-bound. Investors are likely to lean toward stock-specific picks in this setup,” said Vikram Kasat, Head – Advisory, PL Capital.
Here are key global market cues for Sensex today:
Asian Markets
Asian stock market traded mostly lower following a volatile session on Wall Street overnight. Japan’s Nikkei 225 fell 0.3%, while the Topix index declined 0.11%. South Korea’s Kospi index dropped 0.98% and the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 25,265 level, a premium of nearly 20 points from the Nifty futures’ previous close, indicating a flat-to-positive start for the Indian stock market indices.
Wall Street
US stock market ended higher amid volatility on Wednesday speculation about the future of Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average rallied 231.49 points, or 0.53%, to 44,254.78, while the S&P 500 gained 19.94 points, or 0.32%, to 6,263.70. The Nasdaq Composite closed 52.69 points, or 0.26%, higher at 20,730.49.
Nvidia share price rose 0.39%, Advanced Micro Devices shares gained 2.87%, Apple stock price rose 0.5%, while Tesla share price rallied 3.5%. Goldman Sachs shares added 0.9%, while Bank of America and Morgan Stanley shares declined 0.3% and 1.3%, respectively. Johnson & Johnson stock price surged 6.2%.
Trump-Powell Feud
US President Donald Trump was open to the idea of firing Federal Reserve Chair Jerome Powell, Reuters News reported, citing a source. However, Trump denied the report, even as he unleashed a new barrage of criticism against Powell for not cutting interest rates. The president said he’s “not planning on doing anything” to remove Powell.
US Producer Prices
US producer prices were unexpectedly unchanged in June. The unchanged reading in the producer price index for final demand last month followed an upwardly revised 0.3% rise in May. Economists polled by Reuters had forecast the PPI rising 0.2% after a previously reported 0.1% gain in May. In the 12 months through June, the PPI increased 2.3% after advancing 2.7% in May.
US Industrial Production
US factory production edged up in June. Manufacturing output ticked up 0.1% last month after an upwardly revised 0.3% increase in May. Economists polled by Reuters had forecast production unchanged after a previously reported 0.1% gain in May. Production at factories increased 0.8% on a YoY basis in June. It grew at a 2.1% annualized rate in Q2 after expanding at a 3.7% pace in the January-March quarter.
Japan Trade Balance
Japan’s exports fell for a second straight month in June. Total exports by value dropped 0.5% YoY in June, compared with a median market forecast for a 0.5% increase and a 1.7% decrease in May, the first drop in eight months. Total imports grew 0.2% in June from a year earlier, compared with market forecasts for a 1.6% drop. As a result, the trade balance stood at a surplus of 153.1 billion yen ($1.03 billion), compared with a forecast for a surplus of 353.9 billion yen.
Crude Oil Prices
Crude oil prices rose amid a drop in US crude inventories and signs of easing trade tensions. Brent crude futures gained 0.64% to $68.96 a barrel, while US West Texas Intermediate crude futures were up 0.77% at $66.89.
Dollar
The US dollar was on a fragile footing having lost ground overnight. The dollar index, which measures the greenback against major peers, was little changed at 98.384 after a 0.3% slide on Wednesday. The US currency rose 0.2% to 148.14 yen, after a 0.6% decline overnight. The euro stood at $1.1632, down 0.01%. Sterling edged 0.1% lower to $1.3409.
Gold Prices
Gold prices steadied after a volatile session as traders assessed the outlook for Powell’s tenure as Federal Reserve chair. Gold price was steady at $3,343.61 an ounce, after rising 0.7% in the previous session.
(With inputs from Reuters)
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