The Indian stock market is set to open higher on Monday, with the Sensex and Nifty 50 expected to rise on the back of positive sentiment in global markets. This optimism is driven by hopes of interest rate cuts, following dovish comments from US Federal Reserve Chair Jerome Powell.
Asian markets traded mixed, with Japan’s Nikkei 225 and Topix falling, while South Korea’s Kospi and Kosdaq rose. Hong Kong Hang Seng index futures indicated a higher opening. In the US, the stock market ended higher last week after Powell’s remarks, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting gains.
Powell’s speech at the Jackson Hole Economic Symposium emphasized the need for policy adjustments and expressed confidence in imminent rate cuts. Traders have priced in a Fed easing for next month, with a 64% chance of a 25-basis-point cut and a 36% chance of a larger 50-bps reduction.
In India, the Sensex and Nifty 50 ended the previous week flat with a positive bias. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., expects the market to witness a gradual uptick with stock-specific action in the coming days.
Investors will be closely watching upcoming domestic and global macroeconomic data, India’s GDP figures, foreign fund flows, trends in crude oil prices, and other key global cues that could impact the Indian stock market in the last week of August.
In global markets, gold prices rose, the dollar hovered near a thirteen-month low, and oil prices traded higher due to escalating tensions in the Middle East. Brent crude oil and US West Texas Intermediate (WTI) crude futures both saw gains.
Overall, the outlook for the Indian stock market remains positive, with key global cues and monetary policy expectations driving investor sentiment. It will be important for investors to stay informed and consult with experts before making any investment decisions in the current market environment.