Anticipating a promising start, the Indian stock market is poised to open on a higher note this Thursday, buoyed by the rally seen in global counterparts.
Global Gains and Optimism
Asian shares displayed a morning surge, mirroring the upward momentum witnessed in US stocks. The optimism stems from renewed hopes that central banks might pause their interest rate hikes in light of recent weak economic data. This trend resulted in an overnight increase in US stock indices.
Domestic Rally and Central Bank Focus
The Indian equity market showcased its vigor on Wednesday as the benchmark Nifty surpassed the 19,400 level. Despite this achievement, investors are keeping a close eye on the central bankers’ gathering scheduled at Jackson Hole on Friday. This event is anticipated to provide further insights into the future direction of monetary policies.
Asian Markets Riding High
Asian markets joined the upward trajectory, benefiting from the rally in tech stocks that fueled overnight gains on Wall Street. Investors in the region are on the lookout for central bank rate decisions, with both South Korea and Indonesia expected to maintain their benchmark policy rates unchanged. Notably, Japan’s Nikkei 225 advanced by 0.44%, while South Korea’s Kospi and Kosdaq surged by 1.04% and 1.55%, respectively.
Market Snapshot
Hong Kong‘s Hang Seng index futures indicated a positive opening as they traded higher at 17,973 compared to the previous close of 17,845.92. Meanwhile, Australia’s S&P/ASX 200 demonstrated a 0.42% rise.
Gift Nifty displayed gains at the 19,518 level, showcasing a positive start for the Indian benchmark indices, as compared to the previous close of Nifty futures at 19,432.
US Stocks on the Upswing
Over in the US, stock indices witnessed an upward trajectory. Tech shares, particularly Nvidia, led the rally on the back of heightened expectations for stronger quarterly results. The Dow Jones Industrial Average surged by 184.15 points, equivalent to 0.54%, while the S&P 500 gained 48.46 points, or 1.10%. The Nasdaq Composite soared by 215.16 points, or 1.59%, reaching 13,721.03.
Yield and Sentiment
Market sentiment received a boost as the yield on the 10-year US Treasury note experienced a slight decrease from its near 16-year highs. This movement was influenced by weak business activity data from both the US and the euro zone, prompting some reevaluation.
As the global and domestic landscapes converge, investors are navigating the intricate interplay of market dynamics and central bank actions.
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