Indian Stock Market: 8 Key Factors That Will Influence Market Today
The Indian stock market is expected to open lower on Thursday, tracking mixed global cues. While US markets ended on a positive note, Asian markets traded lower amid concerns over US tariff policies and the Federal Reserve’s cautious stance on interest rates.
On Wednesday, the Indian stock market witnessed a volatile session, with both benchmark indices closing marginally lower. The Sensex declined 28.21 points to settle at 75,939.18, while the Nifty 50 fell 12.40 points to 22,932.90.
Let’s take a look at the eight key factors that will shape market sentiment today.
1. Asian Markets Decline Amid Global Concerns
Asian stocks slipped as investors remained cautious about US President Donald Trump’s proposed tariff policies and the Federal Reserve’s meeting minutes.
- Nikkei 225: Down 0.79%
- Topix Index: Declined 0.67%
- Kospi: Dropped 0.18%
- Kosdaq: Gained 0.32%
- Hang Seng Futures: Indicating a slightly higher opening
The uncertainty surrounding US tariffs and global economic policies has led to cautious sentiment across Asian markets.
2. Gift Nifty Indicates Weak Opening for Indian Markets
Gift Nifty, an early indicator of the Nifty 50, was trading around 22,914, which is nearly 50 points lower than the previous close of Nifty futures. This suggests that Indian equities might open on a negative note today.
3. Wall Street Ends Higher; S&P 500 Hits Another Record
US stock markets closed in the green, with the S&P 500 reaching an all-time high for the second consecutive session.
- Dow Jones: Gained 71.25 points (+0.16%)
- S&P 500: Rose 14.57 points (+0.24%)
- Nasdaq Composite: Added 14.99 points (+0.07%)
Among notable stocks:
- Tesla surged 1.82%
- Microsoft gained 1.25%
- Nikola plunged 39.1% after filing for Chapter 11 bankruptcy
- Analog Devices rallied 9.7%
4. US Fed Minutes Signal No Immediate Rate Cuts
The minutes from the latest Federal Reserve meeting indicate that policymakers are in no rush to cut interest rates due to concerns over inflation. The Fed has reiterated that it will wait for more evidence of sustained progress in taming inflation before adjusting rates.
5. RBI Bulletin: Economic Growth Expected to Improve
The Reserve Bank of India’s (RBI) latest bulletin suggests that the Indian economy is gaining strength, driven by:
- Rising rural demand
- Government’s tax relief measures
- Repo rate cuts by the Monetary Policy Committee
According to the RBI’s internal models, economic growth is projected to reach 6.6% in the January-March quarter of this year.
6. China Keeps Lending Rates Unchanged
China’s central bank kept its benchmark lending rates unchanged, in line with market expectations:
- One-year Loan Prime Rate (LPR): 3.10%
- Five-year Loan Prime Rate: 3.60%
This decision reflects Beijing’s cautious approach to monetary policy amid ongoing economic challenges.
7. US Housing Data Shows Decline in Homebuilding
US single-family home construction fell sharply in January, with housing starts declining 8.4% to an annualized 993,000 units. This marks a 1.8% year-on-year decrease, indicating that the housing sector is still under pressure.
8. Gold Prices Retreat from Record Highs
Gold prices, which recently hit an all-time high of $2,946.85 per ounce, saw a slight pullback as the US dollar strengthened.
- Spot gold: Down 0.2% to $2,928.49 per ounce
- US gold futures: Dropped 0.4% to $2,936.10 per ounce
Key Financial Ratios
| Indicator | Value |
|---|---|
| Sensex Closing (Feb 19, 2025) | 75,939.18 |
| Nifty 50 Closing (Feb 19, 2025) | 22,932.90 |
| Gift Nifty | 22,914 |
| US 10-Year Treasury Yield | 4.21% |
| Brent Crude Oil | $83.12 per barrel |
| Gold Price (Spot) | $2,928.49 per ounce |
| Dollar Index | 103.5 |
| Bitcoin Price | $51,700 |
Market Outlook
Experts believe that the Indian market will remain range-bound in the near term, influenced by:
- Global economic trends
- US interest rate policies
- Political developments in Russia-Ukraine conflict
As the market digests these global cues, traders and investors should remain cautious, focusing on key levels in the Nifty 50 and Sensex.
Stay tuned to Narayan Ventures for the latest updates on the stock market and financial trends!
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.