Gift Nifty, Chinese stocks point to a muted open for Nifty and Sensex on Wednesday

Source Fxstreet
  • India’s Nifty and Sensex set for a subdued open after closing in the green for the sixth straight day on Tuesday.  
  • Nifty refreshed an all-time high above 22,200, Sensex settled above 73,000.
  • Nifty and Sensex await the Fed and RBI Minutes for fresh trading impulse.  

The Sensex 30 and Nifty 50, India’s key benchmark indices, are bracing for a subdued start to Wednesday, having rebounded on Tuesday.

Small losses in the Gift Nifty index and mixed Chinese stocks indicate a flattish to lower open for the Indian indices. Nifty and Sensex extended the bullish momentum on Tuesday, in the run-up to te release of the Minutes of the US Federal Reserve and the Reserve Bank of India (RBI) policy meetings.

The National Stock Exchange (NSE) Nifty 50 ended 0.34% higher on the day at 22,196.95 while the Bombay Stock Exchange (BSE) Sensex 30 finished at 73,057.40, up 0.48%.  

The US stock markets settled lower on Tuesday, as traders returned from the Presidents’ Day holiday on Monday.

Stock market news

  • India’s Nifty and Sensex regained upside traction, helped by a rally in private bank stocks and utility sector stocks while ignoring a sell-off in the auto and technology stocks.
  • Power Grid Corp, Axis Bank, HDFC Bank, Kotak Bank and NTPC were among the major gainers on the Nifty on Tuesday while losers included Coal India, HeroMoto Corp, Bajaj Auto, TCS and Eicher Motors.
  • Among the corporate news, Coal India shares fell 5% after fall in e-auction premium.
  • Shares of Whirlpool of India declined after the report of promoter off-loading 24% stake.
  • Vibhor Steel Tubes debuted on bourses on February 20.
  • On Monday, Bajaj Auto announced February 29 as the record date for a proposed buyback plan amounting to Rs 4,000 crore, at Rs 10,000 per share.
  • Shares of Paisalo Digital rallied 15% to hit a record high of Rs 164 on Monday, surging 63% in the past month on promoter buying and strong December quarter (Q3FY24) earnings. 
  • Novartis India share price surges nearly 11% to hit a 52-week high as Novartis AG announces sale plans for the company.
  • People’s Bank of China (PBoC) cut the five-year Loan Prime Rate (LPR) by a record 25 bps from 4.20% to 3.95%. The PBOC rate cut failed to excite Asian traders.
  • India’s trade data for January showed Thursday a shrinking Trade Deficit of $17.49 billion.
  • US Consumer Price Index (CPI) and Producer Price Index (PPI) data came in hotter-than-expected and helped push back the market’s expectations of a Fed rate cut from March to June. Markets are currently pricing a 77% chance of a cut in June, the CME Group’s Fed Watch Tool shows.
  • Attention now turns toward the Minutes of the Fed January meeting and American tech major Nvidia Earnings report due on Wednesday, as the Indian economic calendar remains devoid of any top-tier data release until Thursday’s RBI Minutes.

Sensex FAQs

What is the Sensex?

The Sensex is a name for one of India’s most closely monitored stock indexes. The term was coined in the 1980s by analyst Deepak Mohoni by mashing the words sensitive and index together. The index plots a weighted average of the share price of 30 of the most established stocks on the Bombay Stock Exchange. Each corporation's weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.

What factors drive the Sensex?

Given it is a composite, the value of the Sensex is first and foremost dependent on the performance of its constituent companies as revealed in their quarterly and annual results. Government policies are another factor. In 2016 the government decided to phase out high value currency notes, for example, and certain companies saw their share price fall as a result. When the government decided to cut corporation tax in 2019, meanwhile, the Sensex gained a boost. Other factors include the level of interest rates set by the Reserve Bank of India, since that dictates the cost of borrowing, climate change, pandemics and natural disasters

What are the key milestones for the Sensex?

The Sensex started life on April 1 1979 at a base level of 100. It reached its highest recorded level so far, at 73,328, on Monday, January 15, 2024 (this is being written in Feb 2024). The Index closed above the 10,000 mark for the first time on February 7, 2006. On March 13, 2014 the Sensex closed higher than Hong Kong’s Hang Seng index to become the major Asian stock index with the highest value. The index’s biggest gain in a single day occurred on April 7, 2020, when it rose 2,476 points; its deepest single-day loss occurred on January 21, 2008, when it plunged 1,408 points due the US subprime crisis.

What major corporations are in the Sensex?

Major companies within the Sensex include Reliance Industries Ltd, HDFC Bank, Axis Bank, ITC Ltd, Bharti Airtel Ltd, Tata Steel, HCL Technologies, Infosys, State Bank of India, Sun Pharma, Tata Consultancy Services and Tech Mahindra.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Weekly Market Outlook: U.S. October CPI Focus and Powell and Fed Officials SpeakInsights – This week, the U.S. will release October CPI data, with inflation expected to face challenges in easing further. Retail sales data will also be closely watched for insights into the economy, guiding the Fed's future policy.
Author  Mitrade
Nov 11, 2024
Insights – This week, the U.S. will release October CPI data, with inflation expected to face challenges in easing further. Retail sales data will also be closely watched for insights into the economy, guiding the Fed's future policy.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
Author  Suzie
Sep 30, Wed
The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
placeholder
Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflationGold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
Author  FXStreet
Oct 01, Thu
Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
placeholder
WTI Price Forecast: Dips to $91.50 as Middle East jitters limit lossesWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.
Author  FXStreet
Oct 02, Fri
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.
goTop
quote