Gift Nifty is hinting at a modestly weak start for Indian equities this morning, as FIIs turned net sellers in yesterday’s otherwise positive session.
Adding to the cautious tone, Wall Street hit the pause button overnight, with the Dow Jones slipping lower after briefly climbing above the 48,000 mark, as investors booked profits amid mixed cues.
Market sentiment was further dampened after Fed Chair Jerome Powell pushed back on expectations of a December rate cut.
That said, Nifty bulls could regroup at lower levels as helping to fuel this optimism are solid earnings reports and expectations for progress on a U.S. trade deal with China, as well as South Korea
Bottom-line: Volatility is likely to be the hallmark of the day as Nifty bulls could regroup at lower levels.
7:00 AM GLOBAL UPDATE:
GIFT Nifty 🇮🇳: (-93, 26162)
Dow Futures: (+14, 47646)
Nasdaq 100 Futures (+60, 26180)
Nikkei (-223, 51083)
Hang Seng (+200, 26546)
Dow Jones (-74, 47632)
Nasdaq Composite (+131, 23958)
Bovespa (+1204, 148633).
Bottom-line’ All anxious eyes now on the face-to-face meet of President Trump and Chinese President Xi Jinping.
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
US Stocks finished mixed on Wednesday, with the Dow falling almost 0.2%, the S&P 500 closing flat, and the Nasdaq Composite rising close to 0.6% for another all-time high.
The Numbers: As widely expected, the US Federal Reserve announced a 25 bps interest rate cut to its benchmark rate. Fed officials lowered their main interest-rate target by a quarter of a percentage point to a range of 3.75% and 4%
Fed also said it’s ending its program of “quantitative tightening” on Dec. 1.
Federal Reserve Chair Jerome Powell said officials had “strongly differing views about how to proceed” with monetary policy in December.
Gold prices ($3951 per ounce) remained below $4,000 per ounce.
WTI crude oil futures was consolidating near the $60.29 per barrel, hovering at its highest level in over two weeks, as signs of a possible trade-deal between the US and China lifted the demand outlook.
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