The Indian stock market is expected to open higher on Thursday, following a positive momentum in global markets. The two key indices, Sensex and Nifty 50, are likely to see gains as Asian markets traded higher and the US stock market ended in the green overnight.
The US Federal Reserve recently released minutes from its July monetary policy meeting, indicating a strong inclination towards a rate cut at the upcoming meeting in September. This news has bolstered hopes of a rate cut, with traders now eagerly awaiting Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium for further insights on the rate outlook.
Traders are currently pricing in a 100% chance of a rate cut next month, according to the CME Group’s FedWatch tool. However, there is uncertainty regarding the size of the reduction, with opinions divided among traders.
In the Indian stock market, the benchmark indices ended higher on Wednesday, with the Sensex gaining 102.44 points and the Nifty 50 settling 71.35 points higher. Investors are taking a cautious approach and buying selectively ahead of key events such as the US FOMC minutes outcome and Powell’s speech at the Jackson Hole conference.
Asian markets traded higher on Thursday, tracking economic data in the region and overnight gains on Wall Street. Japan’s Nikkei 225 and Topix rose, while South Korea’s Kospi and Hong Kong’s Hang Seng index futures indicated a higher opening.
The Gift Nifty was trading around 24,883 level, indicating a positive start for the Indian stock market indices. In the US, the stock market ended higher on Wednesday after the Fed minutes confirmed expectations for a September rate cut.
The Federal Reserve appears to be on track for an interest rate cut in September, with a majority of officials supporting the move. US employers added fewer jobs than originally reported, leading to a downward revision of US payrolls data.
In Japan, factory activity shrank in August amid subdued demand. Gold prices traded near a record high, while the dollar traded near its lowest in more than a year against the euro and sterling. US Treasury yields fell, and oil prices traded lower.
Overall, the global market cues suggest a positive opening for the Indian stock market indices. Investors will be closely watching key events and economic data for further direction in the market. It is advisable for investors to consult with certified experts before making any investment decisions. Stay updated with the latest business news, market updates, and breaking news events by downloading The Mint News App for daily updates.