Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday after the US President Donald Trump announced 25% tariffs on Indian goods, effective August 1.
Asian markets traded mixed, while the US stock market ended mostly lower after the US Federal Reserve policy and Chair Jerome Powell’s statement.
Market expectations for a Fed rate cut in September fell below 50% in the wake of Powell’s comments, according to the LSEG data.
On Wednesday, the Indian stock market extended gains for the second consecutive session, with the Nifty 50 closing above 24,800 level.
The Sensex rose 143.91 points, or 0.18%, to close at 81,481.86, while the Nifty 50 settled 33.95 points, or 0.14%, higher at 24,855.05.
“Markets are expected to remain in consolidation mode, with stock-specific action likely as the earnings season progresses,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Thursday, following an overnight choppy session on Wall Street after Fed policy, and as investors await Bank of Japan’s policy decision.
Japan’s Nikkei 225 rallied 0.55% and the Topix index gained 0.28%. South Korea’s Kospi index rose 0.41%, while the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a weaker opening.
Gift Nifty Today
Gift Nifty was trading around 24,669 level, a discount of nearly 200 points from the Nifty futures’ previous close, indicating a gap-down start for the Indian stock market indices.
Wall Street
US stock market ended Wednesday’s choppy session mixed, after the Federal Reserve kept the interest rate unchanged and as Chair Jerome Powell dampened expectations of a rate cut in the September meeting.
The Dow Jones Industrial Average declined 171.71 points, or 0.38%, to 44,461.28, while the S&P 500 fell 7.96 points, or 0.12%, to 6,362.90. The Nasdaq Composite closed 31.38 points, or 0.15%, higher at 21,129.67.
Nvidia share price gained 2.14%, while Apple shares fell 1.05% and Tesla stock price eased 0.67%. Starbucks shares edged down 0.2%, while Hershey gained 1.4% and VF Corp stock closed up 2.6%. In the extended trade, Meta Platforms share price jumped 11.49% and Microsoft shares rallied 8.28%.
Trump Tariffs
United States President Donald Trump announced a 25% tariff on Indian goods starting August 1, citing India’s high trade barriers, and an additional “penalty” for India’s continued energy and defense ties with Russia. The 25% tariff on India will kick in on Friday, Donald Trump posted on his Truth Social platform.
US Federal Reserve
The US Federal Reserve kept the interest rates unchanged in the 4.25% to 4.5% range for the fifth consecutive time against the backdrop of the lower unemployment rate, solid labour market conditions, but “somewhat elevated” inflation rates in the US economy. Fed Chair Jerome Powell’s comments undercut confidence that borrowing costs would begin to fall in September.
US GDP
US economic growth rebounded more than expected in the second quarter. US GDP increased at a 3.0% annualized rate last quarter. The economy contracted at a 0.5% pace in the January-March quarter, the first GDP decline in three years. Economists polled by Reuters had forecast GDP rebounding at a 2.4% annualized rate. The size of the economy rose to more than $30 trillion for the first time ever last quarter before accounting for inflation.
US Private Payrolls
US private payrolls increased more than expected in July. Private payrolls rose by 104,000 jobs last month after a revised 23,000 decline in June. Economists polled by Reuters had forecast private employment increasing 75,000 following a previously reported drop of 33,000 in June.
Gold Prices
Gold prices rebounded from a one-month low hit in the previous session, as trade uncertainty lifted bullion demand despite reduced expectations of a US Fed rate cut, Reuters reported. Spot gold price rose 0.4% to $3,286.99 per ounce. Bullion hit its lowest level since June 30 in the previous session. US gold futures fell 0.5% to $3,282.10.
Crude Oil Prices
Crude oil prices gained for a fourth straight day. Brent crude futures rose 0.33% to $73.48 a barrel, while US West Texas Intermediate crude gained 0.29% to $70.20 a barrel. Both benchmarks settled 1% higher on Wednesday.
US Dollar
The dollar was around a two-month peak after Fed Chair Jerome Powell stuck to his patient approach on rates and offered little insight on when they could be lowered. Against a basket of currencies, the dollar was last steady at 99.77, not far from a two-month peak of 99.987 it hit in the previous session. The dollar index was set for a monthly gain of more than 3%, Reuters reported. The euro was last 0.25% higher at $1.1433, while Sterling last bought at $1.3248.
(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 making any investment decisions.
