Indian Stock Market: Domestic benchmark equity indices Sensex and Nifty 50 are likely to open higher on Monday amid optimistic sentiment in global markets on hopes of interest rate cuts.

Asian markets posted mixed trading results, while the US stock market closed higher last week on increased expectations of monetary easing.

Federal Reserve Chairman Jerome Powell gave his clearest signal yet that rate cuts will come soon and expressed further confidence in an impending easing of monetary policy. “It is time to adjust policy” and “upside risks to inflation have diminished,” Powell said at the Jackson Hole Economic Symposium.

According to Reuters, traders have fully priced in a Fed rate easing next month. According to the CME FedWatch tool, the probability of a 25 basis point cut is 64 percent, while the probability of a deeper 50 basis point cut is about 36 percent.

On Friday, the leading indices of the Indian stock market ended the session unchanged in a range and with a positive trend.

The Sensex gained 33.02 points or 0.04% to close at 81,086.21, while the Nifty 50 closed 11.65 points or 0.05% higher at 24,823.15.

“Markets are consolidating at higher levels. Overall, we expect the market to see a gradual upturn with stock-specific action,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

In the last week of August, investors will be paying attention to the upcoming domestic and global macroeconomic data, Indian GDP data, foreign fund inflow, crude oil price trends and other important global signals that will influence the Indian stock market.

Here are the key global market signals for Sensex today:

Asian markets

Asian markets recorded mixed trading on Monday following dovish comments from US Federal Reserve Chairman Jerome Powell and escalating tensions in the Middle East.

Japan’s Nikkei 225 fell 1.09%, while the Topix slipped 1.02%. South Korea’s Kospi rose 0.22% and the Kosdaq gained 0.19%. Futures on Hong Kong’s Hang Seng index pointed to a higher open.

Give Nifty as a gift today

Gift Nifty was trading at around 24,916, up nearly 60 points from the previous close of Nifty futures, indicating a positive start for Indian stock market indices.

Wall-Street

The U.S. stock market closed higher on Friday after dovish comments from Federal Reserve Chairman Jerome Powell underlined expectations of a rate cut by the central bank in September.

The Dow Jones Industrial Average rose 462.3 points, or 1.14%, to 41,175.08, while the S&P 500 gained 63.97 points, or 1.15%, to 5,634.61. The Nasdaq Composite closed 258.44 points, or 1.47%, higher at 17,877.79.

Nvidia shares rose 4.55%, Tesla shares gained 4.6%, while Apple shares gained 1.03%. Workday shares rose 12.5%, making them the biggest percentage gainer on the Nasdaq. Ross Stores shares rose 1.8%, while Intuit’s fell 6.8%.

US Federal Reserve Chairman in Jackson Hole

Federal Reserve Chairman Jerome Powell said in his speech at the Jackson Hole Symposium in Wyoming that the time has come for interest rate cuts. “It is time to adjust policy. The direction is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the allocation of risks.”

Gold prices

Gold prices rose on Monday, extending gains from the previous session. Spot gold rose 0.2 percent to $2,516.09 an ounce, while U.S. gold futures rose 0.2 percent to $2,551.30.

dollar

The dollar oscillated near its lowest level in about thirteen months and yields on benchmark 10-year Treasuries also fell.

The dollar index, which measures the currency against a basket of six major currencies including the euro, pound sterling and yen, languished at 100.64, just below its 13-month low of 100.60 hit late last week.

Oil prices

Crude oil prices rose as conflict in the Middle East escalated following an Israeli attack on Hezbollah targets in southern Lebanon.

Brent crude oil prices rose 0.70% to $79.57 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0.74% to $75.38.

(With contributions from Reuters)

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