Market Commentary - Pre-Session
Indices may climb at opening bell As on : 22-Feb-24  08:30

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 89 points at the opening bell.

Global Markets:

The US Dow Jones index futures is currently up by 25 points, signaling a positive opening for US stocks today.

Asian stocks were mixed on Thursday with the technology sector showing gains driven by positive signals from Nvidia. However, concerns about high U.S. interest rates tempered overall market sentiment. The Nikkei 225 benchmark in Japan reached a record high.

The region took a weak lead from Wall Street, influenced by the Federal Reserve's minutes from its late-January meeting, indicating a cautious approach to cutting interest rates. Several Fed officials reiterated this stance in separate addresses. Despite this, Nvidia experienced a substantial surge of up to 10% in after-hours trading, as the company's quarterly earnings surpassed estimates, and it provided a stronger-than-expected revenue forecast for the upcoming quarter.

In the U.S., the Dow Jones closed higher on Wednesday, with investors displaying dip-buying into the close. This occurred despite concerns revealed in the Federal Reserve's January meeting minutes, where members expressed worries about the potential of cutting interest rates too soon.

Meanwhile, the Bank of Korea maintained its benchmark interest rate unchanged on Thursday, aligning with expectations. The central bank signaled its commitment to keeping monetary policy restrictive until inflation aligns with its annual target.

The US 10-year bond yield is recorded at 4.307%. In the commodities market, Brent crude for April 2024 settlement was at $83.08 a barrel.

Domestic Equity Market:

The domestic equity indices corrected on Wednesday, snapping a six-day rising streak. The Nifty 50 index revered after hitting the day?s high of 22,249.40 in the morning trade, but managed to settled above the psychological 22,000 mark. Selling in IT and oil & gas stocks dragged the benchmark indices lower. However, realty, PSU banks and metal shares closed on a firm note.

The barometer index, the S&P BSE Sensex, tumbled 434.31 points or 0.59% to 72,623.09. The Nifty 50 index declined 141.90 points or 0.64% to 22,055.05.

Foreign portfolio investors (FPIs) bought shares worth Rs 284.66 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 411.57 crore in the Indian equity market on 21 February 2024, provisional data showed.

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