Overnight Market Makeover: Gift Nifty, US Fed Impact

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Sensux Nifty

The Sensex and Nifty 50 in the Indian stock market are likely to start the day higher on Thursday due to positive signals from international markets.

Asian markets rose, and US stocks closed mostly up after the US Federal Reserve policy update and inflation figures.

The US Fed keep rates steady and hinted at a single 25 bps cut this year. Lower US inflation pleased markets. Yesterday, the Indian market closed up, led by global cues, with Nifty 50 hitting a record high. Sensex rose by 149.98 points to 76,606.57, and Nifty 50 gained 58.10 points to 23,322.95.

“Nifty has been consolidating for three days without new domestic triggers, waiting for US CPI and Fed policy results. The market is expected to consolidate with a positive tilt in the short run,” stated Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.

Asian markets moved up on Thursday after Wall Street’s rise following the US Fed rate decision. Japan’s Nikkei 225 climbed 0.56%, while Topix was stable. South Korea’s Kospi surged 1.39%, and Kosdaq was up by 0.6%. Hong Kong’s Hang Seng index futures suggested a higher start.

Today,the Nifty was hovering around the 23,460 mark, trading at a premium of about 100 points compared to the previous close of Nifty futures. This suggests a positive opening for the Indian stock market indices.

India’s CPI-based retail inflation dropped to 4.75% in May from 4.83% in April, hitting a one-year low, as per statistics ministry data. Inflation has been below 5% since March. Concurrently, industrial output increased by 5% in April, up from 4.9% in March and 5.6% in February. For the FY24 period, factory output grew by 5.9%, slightly higher than the previous year’s 5.2% expansion.