Following favorable signals from around the world, the domestic benchmark equity indices are anticipated to start the week on an upward trajectory.
Inflation statistics and remarks from US Federal Reserve officials helped influence expectations for the timing of the central bank’s interest rate decreases, which led to a rally in US stock market indices overnight, while Asian markets mainly moved higher.
Several pieces of data, such as US inflation, unemployment claims, budget deficit, and India’s GDP growth in the third quarter, will be announced overnight, and stock market investors will likely respond to these reports.
Amidst mixed global indications, the Indian stock market indices closed Thursday’s turbulent session on a positive note.
The Nifty 50 ended the day 31.65 points, or 0.14%, higher at 21,982.80, while the Sensex rose 195.42 points, or 0.27%, to close at 72,500.30.
Investors were driven back after a recent rise due to recent global economic data releases. In addition, when looking at interest rates, personal consumption expenditures (PCE), the favored inflation indicator of the US Fed, are crucial. Second, the third quarter GDP numbers from India will have an impact on the markets. According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd., the automobile industry is likely to be the center of attention this weekend due to the publication of monthly sales figures.
Important local and international market signals for the Sensex today are as follows:
Following Wall Street’s overnight gain and with investors anticipating China’s manufacturing report, Asian markets traded higher on Friday.
The Nikkei 225 and Topix indexes in Japan both had gains of 0.72% and 0.50%, respectively. Futures on the Hang Seng index in Hong Kong pointed to an opening lower than expected. The South Korean market was closed in observance of Movement Day.
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Trading at a premium of almost 30 points from Thursday’s Nifty Futures close, Gift Nifty was trading around 22,197 level, suggesting a somewhat positive start for the Indian stock market indices.
After US inflation data was released, tech stocks led the rally that sent US stock market indices soaring, with the Nasdaq and S&P 500 closing at record highs on Thursday.
The S&P 500 increased by 26.51 points, or 0.52%, to 5,096.27, while the Dow Jones Industrial Average increased by 47.37 points, or 0.12%, to 38,996.39. At 16,091.92, the Nasdaq Composite closed 144.18 points, or 0.90%, higher.
The stock prices of Nvidia, Advanced Micro Devices, and Dell Technologies all increased by 2.08%, 9.06%, and 1.51%, respectively. Shares of Boeing dropped by 1.59% and Snowflake by 18.14%.
While consumer prices in the US rose in January, inflation as a whole was at its lowest level in over three years. Government statistics revealed a 0.3% increase in the personal consumption expenditures (PCE) price index last month. The PCE inflation rate increased by 2.4% in the year ending in January. Reuters stated that this follows a 2.6% increase in December and was the lowest year-on-year increase since February 2021.
Reuters surveyed economists who had predicted a 0.3% monthly increase and a 2.4% annual increase in the PCE price index.
Last week, more people than usual claimed for unemployment benefits, although the number of layoffs is still at a record low. According to the Labor Department, the number of people applying for unemployment benefits increased by 13,000, reaching 215,000, for the week ending February 24. For the week ending February 17, the total number of Americans getting unemployment benefits reached 1.9 million. This was an increase of 45,000 from the previous week and the highest number since November.
The world’s fastest-growing major economy, India’s GDP rose 8.4 percent in the third quarter of FY24. The revised GDP growth estimates for Q1FY24 and Q2FY24 are 8.2% and 8.1%, respectively. An further revision was made to the FY24 GDP growth projection, increasing it from 7% to 7.6%.
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The data that was disclosed shows that India’s fiscal deficit for the first ten months of FY24 was ?11.03 lakh crore, which is 63.6% of the revised annual estimate. From ?11.91 lakh crore, or 67.8%, recorded during the corresponding period last year, the budget deficit shrank.
The budget deficit for India was ?11.03 trillion in April and January, which is 64% of the yearly target.
The president and voting member of the Atlanta Fed, Raphael Bostic, emphasized the importance of basing monetary policy decisions on evidence, predicted that the path to the Fed’s inflation objective of 2% would be rocky, and reiterated his belief that rates will be cut by the central bank “in the summer months.”
According to Reuters, President Austan Goolsbee of the Federal Reserve Bank of Chicago stated that last year’s improvements in the labor market and the supply of products set the stage for inflation decreases this year. This suggests that Goolsbee still supports rate cuts later this year.
February saw the sharpest decline in manufacturing activity in Japan in almost 3.5 years.
The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) fell for the ninth consecutive month in February, falling from 48.0 in January to 47.2.
Thursday saw a decline in crude oil prices due to growing OPEC supply and US inflation statistics.
United States crude oil concluded at $78.26 per barrel, a loss of 28 cents, and Brent futures for April delivery ended at $83.62 per barrel, a decline of 6 cents.