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Business News/ Markets / Stock Markets/  6 things that changed for the Indian stock market over weekend - Gift Nifty, Fed pushback to US business activity pickup
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6 things that changed for the Indian stock market over weekend - Gift Nifty, Fed pushback to US business activity pickup

India stock market: Asian markets traded lower, while the US stock market ended mixed after US Federal Reserve officials pushed back against bets of aggressive interest rate cuts next year.

India stock market: Japan’s Nikkei 225 declined 0.77% and the Topix fell 0.8%. (Photo: Reuters)Premium
India stock market: Japan’s Nikkei 225 declined 0.77% and the Topix fell 0.8%. (Photo: Reuters)

India stock market: the domestic benchmark equity indices, Sensex and Nifty, are likely to take a breather from a rally and open on a tepid note on Monday amid weak global cues.

The Asian markets traded lower, while the US stock market ended mixed after US Federal Reserve officials pushed back against bets of aggressive interest rate cuts next year. 

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On Friday, the domestic equity indices continued their bull run to end sharply higher, touching new all-time highs amid optimism over the end of the monetary tightening cycle in the US and increased hopes of higher interest rate cuts in 2024.

The BSE Sensex jumped 969.55 points, or 1.37%, to end at 71,483.75, while the NSE Nifty 50 settled 273.95 points, or 1.29%, higher at 21,456.65, on December 15.

“Equity Markets are witnessing a Santa rally globally post the dovish outlook by US Fed and fall in dollar index. This along with strong FIIs buying and healthy macros, supported the positivity in Indian Markets. Nifty has surged ~3% in the last two sessions and we expect this optimism to continue next week on the back of a liquidity driven rally," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 18

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Monday after Wall Street indices ended a six day rally, while investors will watch out for key economic data from the region this week.

The Bank of Japan monetary policy decision, China’s loan prime rates on Wednesday and inflation data from Japan on Friday will be on investors’ radar.

Japan’s Nikkei 225 declined 0.77% and the Topix fell 0.8%. South Korea’s Kospi dropped, while the Kosdaq gained 0.82% at open. Hong Kong’s Hang Seng index futures pointed to a weaker open. Australia’s S&P/ASX 200 fell 0.18%.

Gift Nifty

Gift Nifty was trading around 21,485 level as compared to Nifty futures’ previous close of 21,558, indicating a weak start for the Indian benchmark indices.

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US stock market

The US stock market ended Friday’s choppy session mixed with the S&P 500 registering a seventh straight week of gains in its longest winning streak since 2017, while the Dow Jones industrial average notching a record high close for the third session in a row.

The Dow Jones Industrial Average gained 56.81 points, or 0.15%, to 37,305.16, while the S&P 500 eased 0.36 points, or 0.01%, to 4,719.19. The Nasdaq Composite ended 52.36 points, or 0.35%, higher at 14,813.92.

For the week, the Dow rose 2.9%, the Nasdaq rallied 2.8% and the S&P 500 surged 2.5%.

Also Read: Wall Street week ahead: Investors eye PCE, jobless data

US business activity picks up

US business activity picked up in December amid rising orders and demand for workers, Reuters reported. S&P Global said that its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to a five-month high of 51.0 this month from 50.7 in November. A reading above 50 indicates expansion in the private sector.

Fed’s Williams douses rate-cut hopes

Just days after the US Federal Reserve meeting penciled in an ample course of interest rate cuts next year, one of the US central bank’s top policymakers pushed back on the ebullience on Friday.

“We aren't really talking about rate cuts right now," New York Fed President John Williams said in an interview with CNBC. When it comes to the question of lowering rates, “I just think it’s just premature to be even thinking about that" as the central bank continues to mull whether monetary policy is in the right place to help guide inflation back to its 2% target, he said.

Also Read: Day trading guide for stock market today: Six stocks to buy or sell on Monday — 18th December

Crude oil prices rise

Crude oil prices rose as major shipping lines suspended transit through the Red Sea, highlighting the risk to the vital artery for international crude trade, Bloomberg reported.

Brent crude futures rose 0.73% to $77.11 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.66% to $71.90.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 18 Dec 2023, 07:02 AM IST
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