Indian stock market will begin the day on a cautious note on Tuesday, driven by mixed cues from the global markets and increased anticipation for the US Federal Reserve policy meeting. Here are the key updates influencing today's trade:
1. Gift Nifty Indicates Weak Opening
Gift Nifty was trading around 24,670, about 70 points lower than the Nifty futures' previous close, which suggests a subdued start for the domestic indices.
2. Wall Street Ends Mixed
US stock markets closed on a mixed note:
- Dow Jones fell 110.21 points (-0.25%) to 43,717.85.
- S&P 500 gained 23.03 points (+0.38%) to 6,074.12.
- Nasdaq Composite surged 247.17 points (+1.24%) to a record 20,173.89, driven by megacap tech stocks.
- Alphabet gained 3.6%, Tesla increased 6.1%, while Nvidia lost 1.7%.
3. US Manufacturing Data Misses
The US Manufacturing PMI fell to 48.3 in December, weaker than expected at 49.8. This is its lowest since more than 4.5 years and shows factory activity is contracting. That adds to a growing list of economic woes around the world.
4. Asian Markets Trade Mixed
Indices in Asia were mixed Thursday:
Japan's Nikkei 225 was up 0.34% and Topix up 0.29%.
South Korea's Kospi lost 0.28%, and Kosdaq traded down 0.2%.
Hong Kong Hang Seng futures signaled a weaker opener.
5. Gold Stalls Before Fed Meeting
The yellow metal was little changed before the Federal Reserve said it will keep interest rate on hold:
Spot gold was at $2,652.30/oz.
US gold futures hadn't changed at $2,669.10/oz.
6. Currencies
The US dollar traded firm, with the Japanese yen at 154.17 per dollar and European currency at $1.0518, near this year's lows.
Offshore yuan traded under slight pressure at 7.2918.
What's Fueling Caution?
US Fed Rate Decision: The FOMC meets today for its last 2024 policy meeting, which the market has priced a 98.2% chance of a 25 bps rate cut. But the possibility of another cut in January remains low at 14.7%.
Bank of Japan's Policy Outlook: Investors look forward to BoJ's position on monetary policy that would further fuel jitters in the market.
IPOs in View: Increased activity in the primary market, with 5 IPO listings and 7 new IPOs opening this week, may impact the liquidity of secondary markets.
Summary of Previous Session
The Sensex ended 384.55 points lower at 81,748.57 (-0.47%), and the Nifty 50 fell 100.05 points to close at 24,668.25 (-0.4%), as investors remained cautious ahead of the key central bank meetings on Monday.
Trend for Today
Markets are likely to remain range-bound, with caution prevailing amid global uncertainties. Investors will closely monitor the outcome of the US Fed meeting and its impact on interest rate trajectories.
Disclaimer: The above content is for informational purposes only and not a recommendation for any investment strategy. Investors should consult certified financial experts before making investment decisions.
