Indian stock market: 10 key things that changed for market over weekend

Indian stock market: The domestic equity indices, Sensex and Nifty 50, are expected to open higher on Monday tracking positive global market cues.

Asian markets traded higher, while the US markets ended the March quarter on a stronger note led by a rally in technology stocks.

With the beginning of a new financial year, Investors will now look at a slew of stock market triggers, including the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, auto sales data, fourth-quarter company updates ahead of the results, foreign capital inflow, crude oil prices, and other global cues.

Read here: Week Ahead: RBI Policy, auto sales, Q4 updates, global cues among key market triggers in first week of FY25

On Thursday, the Indian stock market indices ended sharply higher amid positive global cues, ending the financial year 2024 with robust gains.

The Sensex spiked 655.04 points, or 0.90%, to close at 73,651.35, while the Nifty 50 settled 203.25 points, or 0.92%, higher at 22,326.90.

The benchmark equity indices wrapped up the financial year 2023-2024 with notable gains as the Nifty 50 soared by 29%, while the Sensex jumped 25% during FY24.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 1st April

Stock markets were shut on March 29 on account of the Good Friday holiday.

“We expect the market to continue its positive momentum with a focus on large-cap. With the start of the election in April, we believe government-centric stocks to be in focus. Auto stocks are likely to be in the limelight this week amid the release of monthly auto sales numbers,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Monday as investors assessed key economic data from China and Japan.

Japan’s Nikkei 225 gained 0.41%, while the Topix declined 0.28%. South Korea’s Kospi rose 0.36%, and the Kosdaq added 0.63%. Hong Kong markets are shut for Easter Monday.

Read here: Asian Stocks Gain as Data Reinforce Fed Rate Path: Markets Wrap

Gift Nifty Today

Gift Nifty was trading around the 22,540 level, a premium of nearly 50 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.

Wall Street

The US stock market indices ended mixed on Thursday with the S&P 500 notching its strongest first quarter in five years.

The Dow Jones Industrial Average gained 47.29 points, or 0.12%, to 39,807.37, while the S&P 500 rose 5.86 points, or 0.11%, to 5,254.35. The Nasdaq Composite ended 20.06 points, or 0.12%, lower at 16,379.46.

For the quarter ended March 2024, the Dow rallied 5.62%, the S&P 500 jumped 10.16% and the Nasdaq surged 9.11%.

US GDP

The US GDP grew at a 3.4% annualized rate in the fourth quarter (October-December 2023), up from 3.2% estimates a month ago. The US Q4 GDP growth however, was sequentially lower when compared to Q3 GDP growth which was pegged at 4.9%. Full-year growth was at 2.5%.

Read here: US Q4 GDP: US economy grows 3.4% YoY in October-December driven by consumer spending, high exports

US Inflation

US inflation increased moderately in February keeping expectations of interest rate cut in June from the US Federal Reserve on the table. The personal consumption expenditures (PCE) price index rose 0.3%, lower than Street estimates, data showed. This followed a 0.5% reading in January. In the 12 months through February, PCE inflation advanced 2.5% after increasing 2.4% in January.

Read here: US inflation rises moderately at 0.3% in February, consumer spending jumps; Fed rate cuts on table

Jerome Powell

The US Federal Reserve is in no hurry to cut interest rates and that the fresh inflation data released on Friday is ‘pretty much in line with expectations’, said Chair Jerome Powell. Powell also reiterated it will not be appropriate to lower rates until policymakers are confident that inflation is on track toward the 2% goal.

Read here: Fed need not be in hurry to cut rates, inflation data within expectations: Jerome Powell

China PMI

China’s factory activity expanded in March as the manufacturing purchasing manager’s index was at 50.8 as against the 49.1 seen in February and the 49.9 expected by the Reuters poll.

India’s Fiscal Deficit

India’s fiscal deficit during the first 11 months of FY24 stood at ₹15.01 trillion, or 86.5% of the revised annual estimate, official data showed. The budgeted annual estimates for fiscal deficit, revised in the vote-on-account budget on 1 February, was at ₹17.35 trillion for FY24.

Read here: India’s Apr-Feb fiscal deficit at ₹15 trillion, 86.5% of FY24 target

Oil Prices

Crude oil prices traded lower on Monday, holding on to most of their recent gains.

Brent crude fell 0.21%, to $86.82 a barrel after rising 2.4% last week, while US West Texas Intermediate crude was down 0.14% at $83.05 a barrel, following a 3.2% gain last week.

Japan’s Service Sector Sentiment

The headline sentiment index for big manufacturers in Japan stood at 11 in March from 13 in December, the tankan survey showed, compared with a median market forecast for a 10 reading, Reuters reported. The index gauging big non-manufacturers sentiment improved to 34 in March from 32 three months ago, slightly exceeding a market forecast of a reading of 33.

(With inputs from Reuters)

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