On Monday, following mixed signals from global markets, the domestic equity indices, the Sensex and the Nifty 50, are anticipated to open lower.
Last week, US stock indices ended lower, but Asian markets traded higher, in anticipation of important economic data releases in the area.
The conclusion of the US Federal Reserve policy meeting, the movement of foreign capital, the direction of crude oil prices, and other global signals are among the stock market triggers that market participants will keep an eye on. Later today, China will unveil figures about retail sales, industrial output, and urban unemployment.
The announcement of interest rate decisions by the Bank of England, the Bank of Japan, and the US Federal Reserve will make this week an economically significant one.
Here are some important market triggers to keep an eye on this week: US Fed Policy, FPI inflows, crude oil prices, and global cues.
As a result of Ukraine’s attack on Russian oil refineries over the weekend, which included drone strikes on numerous sites, including some located deep into Russia’s territory, rising global geopolitical threats have the potential to dampen market confidence.
The Indian stock market indices ended the day on a down note as profit-taking took place as investors remained wary due to ongoing worries over overvalued stocks and market turbulence.
Both the Sensex and the Nifty 50 closed with losses; the former fell 453.85 points (0.62%) to 72,643.43 while the latter fell 123.30 points (0.56%) to 22,023.35.
Due to investors’ anxiety over the timing of the rate cut, the US Federal Reserve’s policy statement and the results of the policy meeting will be closely watched. According to Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd., investors should focus on large caps and defensive companies because they anticipate that the market will continue to be unpredictable in the near future.
Monday saw higher action on Asian markets as investors awaited the release of crucial Chinese economic data and the start of a busy week of central bank meetings. The MSCI Asia-Pacific Index, which includes equities from companies outside of Japan, fell 0.1% after falling 0.7% the previous week.
The Topix index rose 1.21% and the Nikkei 225 index rose 1.34% in Japan. While the Kosdaq rose 0.9%, the Kospi in South Korea remained flat. Predictions for the Hang Seng index in Hong Kong pointed to a solid start.
Indicative of a poor start for the Indian stock market indices, Gift Nifty was trading at 22,050, a markdown of roughly 80 points from the Nifty futures’ latest close.
As investors considered the interest rate forecast in anticipation of next week’s Federal Reserve meeting, tech companies led the way lower on Friday, dragging down US stock market indices.
The S&P 500 lost 33.39 points, or 0.65%, to 5,117.09, and the Dow Jones Industrial Average lost 190.89 points, or 0.49%, to 38,714.77. At 15,973.17, the Nasdaq Composite ended the day down 155.36 points, or 0.96%.
Of the stocks that fell, Adobe’s stock price fell 13.7 percent and Microsoft’s stock price fell 2.1 percent.
Manufacturing output rebounded 0.8% last month following a downwardly revised 1.1% decline in the preceding month, leading to US industrial production increasing more than predicted in February. Factory output was expected to grow 0.3%, according to economists polled by Reuters. In February, factory output declined 0.7% year over year.
A poll conducted in March revealed that there was minimal change in consumer sentiment and inflation forecasts in the US. Preliminary data for the overall measure of consumer mood from the University of Michigan came in at 76.5 this month, up from 76.9 in February. According to Reuters’ poll of economists, a preliminary reading of 76.9 was predicted.
According to Reuters, the survey found that consumer expectations for inflation over the next year remained unchanged at 3.0% in March, while those for the next five years remained stable at 2.9% for the fourth consecutive month.
The yield on US Treasuries hit a three-week high. The benchmark 10-year note yield hit 4.315%, its highest level since February 22, an increase of 1.4 basis points (bps). The two-year yield increased by 24 basis points last week and is now at 4.723 percent.
After experiencing its largest weekly gain in a month, crude oil prices leveled out as geopolitical tensions rose following attacks on Russian oil refineries by Ukraine. After a 4% increase last week, the global standard for oil, Brent, traded 0.04% higher at $85.37 per barrel, while West Texas Intermediate advanced 0.07% to $81.10 per barrel.
Core machinery orders in Japan declined 1.7% from December, which was lower than predicted. That was in contrast to the 1.0% decline that economists had predicted in a Reuters poll. Compared to the predicted 11.2% decline, the actual year-over-year decline in core orders was 10.9%.
The proposal to establish a beta version of the T+0 settlement, to exempt some FPIs from additional disclosure requirements, and to facilitate the ease of doing business for firms going public were all accepted by the Securities and Exchange Board of India (SEBI).
For the 2024 Lok Sabha Elections, the results and voting schedule were declared on Saturday by the Elections Commission of India. The seven-part 2024 Lok Sabha Elections will start on April 19 and end on June 1. The Lok Sabha Elections 2024 results will be announced on June 4.