Indian stock market: The domestic equity frontline indices, Sensex and Nifty 50, are expected to open higher amid cautiousness on Monday tracking mixed global cues.
Asian markets traded mostly higher, while the US stock indices ended lower last week amid the release of GDP and inflation data.
Catch Live Market Updates here
The US Federal Reserve monetary policy and its first rate decision of 2024, to be released Wednesday, will be keenly watched and is expected to guide the markets.
Both the domestic benchmark indices declined around 1.3% in the holiday-shortened week gone by, primarily dragged by weakness in the banking sector.
On Thursday, the Sensex fell 359.64 points, or 0.51%, to 70,700.67, while the Nifty 50 ended 101.35 points, or 0.47%, lower 21,352.60.
In this last week of the month, investors will eye several stock market triggers including the ongoing Q3 results, Interim Budget 2024, US Federal Reserve policy verdict, foreign capital inflow, along with other domestic and global market cues.
Also Read: Week Ahead: Interim Budget 2024, US Fed Policy, Q3 results, auto sales among key market triggers this week
“Going ahead, the market is likely to consolidate further ahead of the US Fed interest rate decision on Wednesday where the Fed is expected to maintain the status quo and give some hint with regards to rate cut timeline. Apart from this, BoE monetary policy is also due coupled with few key economic data releases which might keep markets volatile,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Further, many heavyweights would be releasing their earnings next week, thus stock specific action would continue despite market consolidation, Khemka added.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 29
Here are key domestic and global market cues for Sensex today:
Asian Markets
Asian markets traded mostly higher ahead of key economic data in the region.
Japan’s Nikkei 225 gained 0.46% and the Topix rallied nearly 1%. South Korea’s Kospi rose 0.47%, while the Kosdaq eased 0.16%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty
Gift Nifty was trading around 21,639 level, as compared with Nifty futures’ previous close of 21,510, indicating a positive start for the Indian stock market indices.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)
Wall Street
US stock market indices ended mixed on Friday, with the S&P 500 ending its five-session streak of record highs, while US economic data showed inflation moderating. All three major indexes recorded their third straight weekly gain and their 12th weekly advance out of 13.
The Dow Jones Industrial Average rose 0.16% to 38,109.43, while the S&P 500 fell 0.07% to end the session at 4,890.97. The Nasdaq closed 0.36% lower at 15,455.36. For the week, the S&P 500 rallied 1.06%, the Dow rose 0.65% and the Nasdaq gained 0.94%.
Also Read: Wall Street week ahead: Investors’ major focus on Fed rate decision, big tech earnings
Intel shares plunged 11.9% to a six-week low after its revenue forecast missed estimates. KLA Corp shares declined 6.6%.
American Express share price surged 7.1% and hit a record high after its higher-than-expected annual profit forecast, while Visa shares fell 1.7% on its tepid current-quarter revenue growth forecast. Apple shares fell 1% ahead of its quarterly report next Thursday.
US GDP
The US economy grew faster than expected in the fourth quarter of 2023 amid strong consumer spending. US GDP (gross domestic product) increased at a 3.3% annualized rate last quarter after advancing at a 4.9% pace in the third quarter, the Commerce Department’s Bureau of Economic Analysis said. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.
Also Read: Here’s why China’s GDP cannot surpass United States this year
US Inflation
US prices rose marginally in December, keeping the annual increase in inflation below 3% for a third straight month. The personal consumption expenditures (PCE) price index increased 0.2% last month after dropping 0.1% in November, the Commerce Department’s Bureau of Economic Analysis said. In the 12 months through December, the PCE price index advanced 2.6%, matching November’s gain, Reuters reported.
Oil prices
Crude oil prices jumped on Monday on fuel supply concerns after a missile attack on a Trafigura-operated fuel tanker in the Red Sea.
Brent crude futures rose 0.83% to $84.27 a barrel after hitting a session-high of $84.80, while the US West Texas Intermediate crude gained 0.77% to $78.61 a barrel.
ECB Policy
The European Central Bank (ECB) kept interest rates unchanged at a record-high of 4% and reaffirmed its commitment to fighting inflation even as the time to start easing borrowing costs approaches.
(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.
Milestone Alert! Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
Download the Mint app and read premium stories
Log in to our website to save your bookmarks. It’ll just take a moment.
You are just one step away from creating your watchlist!
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Your session has expired, please login again.
You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.
This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp