The Indian stock market is expected to start cautiously on Thursday, following a significant sell-off in the previous session and mixed signals from global markets. The Gift Nifty futures were trading marginally ahead of Wednesday’s Nifty 50 close, indicating a cautious start for the Indian markets.
Global markets were trading in muted tones, with South Korean shares rising on the back of government promises to speed up corporate reform. Australian shares ticked lower, with financials dragging down the index. In the US, a gauge of global stock markets edged lower, and US Treasury yields rose modestly as investors awaited the next round of data on inflation and consumer health for clues on Federal Reserve policy.
On Wall Street, the rise in yields weighed on tech stocks, pulling the Nasdaq lower, while the Dow Jones Industrial Average and the S&P 500 saw modest gains. MSCI’s gauge of stocks across the globe fell slightly, while Europe’s STOXX 600 index closed up, aided by retail stocks.
Investors are awaiting the release of data on India’s wholesale inflation and US producer prices today. The Nifty 50 formed a long bearish candle on the daily chart, moving below immediate support levels. Analysts expect the market’s sluggishness to persist in the near term, with major support around the 21,500 zone.
Overall, the Indian markets are likely to start cautiously, with investors closely monitoring global cues and upcoming data releases for further direction.
