The Indian stock market is set for a positive opening on Thursday, with global indicators pointing towards a positive trend. Asian markets are experiencing a surge, influenced by the US stock market’s overnight gains. The optimism comes amidst weak economic data, sparking expectations of interest rate cuts by the Federal Reserve.
The Gift Nifty futures were trading at 22,678, slightly higher than Wednesday’s Nifty 50 close of 22,620, indicating a positive start for the Indian benchmark index. Asian shares are on the rise, with tech stocks leading the gains. Japan’s Nikkei rose by 1%, while China and Hong Kong stocks also saw gains.
The Indian market is expected to focus on the government formation process, particularly on key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways. With the election overhang done, the market is likely to revert its focus to fundamentals.
The US stock market saw record closing highs on Wednesday, with AI company Nvidia becoming the world’s second-most valuable company, surpassing Apple. The May private payrolls report indicated a weakening labor market, leading to expectations of Fed rate cuts in September.
Investors are now pricing in rate cuts by the Fed, with a rate cut in September at a 69% chance. The focus is now on the nonfarm payroll report for May, expected to increase by 185,000 jobs.
In the currency market, the dollar was lower, with the yen strengthening. The euro was up ahead of the European Central Bank policy meeting, where a rate cut is widely expected.
Overall, the global market trends are positive, with expectations of interest rate cuts and improving sentiment driving the market. The Indian stock market is likely to open on a positive note, with a focus on government formation and key economic indicators.
