The global markets are facing uncertainty as investors analyze recent economic data and comments from Federal Reserve officials to gauge the possibility of interest rate cuts. The S&P 500 and Nasdaq closed lower on Thursday, with Nvidia’s retreat contributing to the decline. This comes after a rally to all-time highs, leading to concerns of a potential pullback due to signs of buyer fatigue.
In the US, unemployment numbers continue to rise, with jobless benefit filings reaching 238,000 for the week ended June 15, the highest level since September 2023. Meanwhile, the Bank of England kept interest rates unchanged at 5.25 percent, but traders are anticipating a rate cut in August following dovish signals from policymakers.
On the global front, India slipped seven ranks to 15 in the World Investment Ranking in 2023, with foreign direct investment inflows dropping by 43 percent to $28 billion. However, the country ranked fourth in terms of greenfield projects, attracting 1,058 projects after the US, the UAE, and the UK.
In domestic news, the Union Cabinet has approved an increase in the Minimum Support Prices for 14 crops for the upcoming Kharif season. Asian stocks are also feeling the impact of the US market’s downturn.
Despite the global uncertainty, the Nifty managed to recover from the previous day’s fall and ended higher in a volatile session on June 20. Closing at 23,567, the Nifty rose by 0.22% or 51 points. Analysts suggest that the Nifty could continue to trade within the 23,413-23,664 range in the near term.
With markets poised to open flat to mildly lower, investors will be closely watching for any developments that could impact trading throughout the day.
