Indian stock market: 7 key changes post weekend – Nifty gift for dovish US Fed Chair Powell

Indian Stock Market poised for a Strong Start on Monday

After a positive session in the US stock market last week, the Indian equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday. This optimistic outlook is driven by global market sentiment and the anticipation of future interest rate cuts.

The US Federal Reserve Chair, Jerome Powell, delivered a robust message indicating imminent interest rate cuts. In his speech at the Jackson Hole Economic Symposium, Powell stated, “The time has come for policy to adjust,” instilling confidence in market participants.

Traders have already factored in the possibility of a Fed rate cut next month, with expectations ranging from a 25-basis-point reduction to a more substantial 50-bps decrease.

Following a rangebound session on Friday, the Indian stock market closed with a slight upward bias, reflecting the overall optimistic market sentiment.

The Sensex closed at 81,086.21, registering a gain of 33.02 points, while the Nifty 50 settled at 24,823.15, up by 11.65 points.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, commented, “Markets are consolidating at higher levels. Overall, we expect the market to witness a gradual uptick with stock-specific action.”

Investors will closely monitor upcoming macroeconomic data, India’s GDP figures, foreign fund flows, crude oil price trends, and other global cues that could impact the Indian stock market in the last week of August.

Here are some key global market cues influencing the Sensex today:

Asian Markets

Asian markets displayed mixed trends on Monday following dovish remarks from US Fed Chair Jerome Powell and escalating tensions in the Middle East.

While Japan’s Nikkei 225 and Topix recorded declines, South Korea’s Kospi and Kosdaq saw modest gains. Hong Kong’s Hang Seng index futures indicated a positive opening.

Gift Nifty Today

Gift Nifty is positioned around the 24,916 level, signaling a favorable start for the Indian stock market indices based on a premium of nearly 60 points from the Nifty futures’ previous close.

Wall Street

Wall Street closed higher on Friday as expectations of interest rate cuts by the US Federal Reserve gained momentum following dovish comments from Fed Chair Jerome Powell.

The major US indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, posted gains driven by positive market sentiment.

Several high-profile stocks, such as Nvidia, Tesla, Apple, Workday, Ross Stores, and Intuit, experienced significant price movements during Friday’s trading session.

US Fed Chair at Jackson Hole

Fed Chair Jerome Powell reiterated the need for interest rate adjustments at the Jackson Hole Symposium, emphasizing the importance of data, outlook, and risk assessment in determining the timing and magnitude of rate cuts.

Gold Prices

Gold prices continued to climb on Monday, with spot gold and US gold futures registering gains amid prevailing market dynamics.

Dollar

The dollar remained near a thirteen-month low, while benchmark 10-year yields showed a slight decline in line with overall market trends.

The dollar index, a measure against major currencies, hovered around 100.64, reflecting ongoing market dynamics.

Oil Prices

Crude oil prices edged higher amidst heightened tensions in the Middle East, following recent developments in the region.

Brent crude and US West Texas Intermediate (WTI) crude futures saw gains in response to geopolitical events.

Source: Reuters

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