Market Overview

European stock market news: Investors remained optimistic about the cuts

European stock market news

On Monday, the European stock market shares were seen in green as investors continued to remain optimistic about the rate cuts from the US Federal Reserve and European Central Bank. However, shares of Dassault Aviation impacted the overall market momentum after the rating downgrade. Pan-European STOXX 600 was up by ~0.2%, extending gains for the second session. Eurozone banks saw the addition of 0.3%, with shares of Commerzbank increasing by ~2.3% as there were rumours about the merger with Deutsche Bank.

European stock market news

However, as the day progressed, the momentum was lost in the European equities. By the end of day, Stoxx 600 index was down by ~0.5%, with leading bourses and sectors trading in negative territory. Household goods saw a fall of ~1%, with travel stocks climbing 0.9%. European stock market news was dominated by the macro-economic data points.

German economy saw the contraction by 0.3% in 2023, as per the initial figures which were published by national statistics agency. Economic development took a hit in Germany in 2023 amidst several crises-like scenarios. Increased inflation, higher interest rates and subdued domestic and foreign demand impacted the gross domestic product.

Indian indexes gains strong momentum on Monday

Moving away from the European stock market news, Indian indexes said strong gains on Monday as technology sector provided the needed support. With companies in the IT sector rallying after their 3Q results declaration, the Indian stock market touched record higher, with Sensex surpassing ~73,000 levels and Nifty crossing ~22,000 levels. One of the leading contributors to the Sensex increase was Wipro. The company’s shares rallied as much as ~14%. Wipro’s December quarter earnings exceeded the estimates which led to this strong rally.

Several other stocks such as Tata Consultancy Services, HCL Technologies and Infosys significantly contributed to highs seen in Sensex and Nifty. These increases were seen mainly because of their 3Q results which are expected to be released in this month. 

On Friday, HCL Technologies posted a rise of 6.2% in its consolidated net profit to INR 4,350 crore. This was highest ever on the quarterly basis for the 3 months ended December 2023. Growth was supported by both services and software businesses. 

Experts believe that the rally in Indian stocks are now being supported by fundamental factors. BSE Sensex saw an increase of ~759.49 points or 1.05% to sit at the lifetime high of ~73,327.94 levels.

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