The Indian stock markets were up by 0.15%, with the Sensex up by 100 points and the Nifty by 18 points.
A positive close on Wall Street on Monday resulted in global markets on Monday. The Dow Jones closed up 0.5%, while the Nasdaq Composite rose 1.9%. Despite signs that inflation is continuing its downward trend, US markets have been on a bull run for the third week in Dow Jones, as well as for the gift week in Nasdaq.
According to the Fed’s preferred inflation gauge, PCE price index, inflation in the U.S. in June 2023 dropped to 3% from 3.8% in May 2023, its lowest rate since about two years ago. According to Aditi Gupta, an economist with Bank of Baroda, the core PCE index (excluding food and energy) rose 4.1% in June 2023, compared with 4.6% in May 2023. According to the data, the Fed’s rate hike cycle may have come to an end.
As of publication, the Korean index KOSPI is up 0.8% and Hong Kong’s Hang Seng is up 1.5%.
Although Nifty fell in early trade on Friday, the swing higher towards the close of 19,620 was encouraging.
A positive divergence and dragonfly formation also support this set up, suggesting that Monday could be the day to reclaim 19700. After the sharp turn lower from 20,000 earlier this month, Anand James, chief market strategist at Geojit Financial Services, said that an attempt would be made to penetrate the 19,770-840 region, which has been a held firm.
A selloff of 5,000 crores by foreign institutional investors in the last two trading sessions might also have a negative impact on the Indian market sentiment, according to experts. Due to mixed earnings reports in the first quarter, a rise in the dollar index, and a sharp rise in crude oil prices, Indian markets have also corrected.
On Monday, Nymex crude opened lower, down 0.5% to $80.15.
As investors predicted, strong demand and supply cuts will keep prices high for a fifth consecutive week, oil prices were flat on Friday, but on course for a fifth consecutive week of increases. The dollar fell on Friday, but gold was still on course for its worst week in five after data indicating a strong US economy shattered expectations for a dovish shift in US monetary policy,” according to a Geojit research report.
Sensex and Nifty closed marginally in the red on Friday. The market was dragged down by private banks, financials and auto stocks.
Today, Maruti Suzuki and Power Grid are expected to report earnings.
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