- The Indian stock market is expected to open flat on Thursday, tracking mixed cues from global peers.
- Asian markets and the US stock market also ended on a mixed note overnight due to gains in US dollar and treasury yields.
- “We expect the market to consolidate in a broader range amid nervousness surrounding the ongoing Lok Sabha election,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Indian stock market expected to open flat, tracking mixed global cues. The article provides insights into the market trends and expert analysis.
Indian Stock Market Performance
On Wednesday, the Indian stock market benchmark indices ended a choppy session on a flat note amid cautious market sentiment. The Sensex fell 45.46 points, or 0.06%, to close at 73,466.39, while the Nifty 50 settled flat at 22,302.50.
Global Market Cues
Asian markets traded mixed tracking similar moves overnight on Wall Street and as investors await key trade data from China. Japan’s Nikkei 225 rose 0.15% and the Topix gained 0.29%. South Korea’s Kospi fell 0.21%, while the Kosdaq declined 0.13%. Hong Kong’s Hang Seng index futures indicated a weak opening.
US Stock Market
The US stock market ended mixed on Wednesday amid rise in Treasury yields, with the Dow Jones Industrial Average closing above 39,000 level for the first time in five weeks. The Dow Jones Industrial Average gained 172.13 points, or 0.44%, to 39,056.39, while the S&P 500 eased 0.03 points to 5,187.67. The Nasdaq Composite ended 29.80 points, or 0.18%, lower at 16,302.76.
Fed’s Collins on US Economy
US Federal Reserve Bank of Boston President Susan Collins said that the US economy needs to cool off as an avenue toward getting inflation back to the central bank’s 2% target. “The recent upward surprises to activity and inflation suggest the likely need to keep policy at its current level until we have greater confidence that inflation is moving sustainably toward 2%,” she said.
US Treasury Yields
US Treasury yields rose after the $42 billion sale of 10-year bonds saw tepid demand. The yield on 10-year Treasury notes increased 4 basis points to 4.492%, while the 2-year bond yield was up 1.3 bps at 4.84%.
Oil Prices
Crude oil prices rose after US inventories data showed an unexpected drop in nationwide crude holdings. Brent crude oil gained 0.34% to $83.86 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.43% to $79.33.
Conclusion
With mixed global cues, the Indian stock market is expected to open flat. Investors are advised to keep a close eye on the global market trends and the ongoing Lok Sabha election for potential impacts on the market.
