The US Federal Reserve's decision on interest rates is eagerly anticipated, with markets speculating on whether it will help end the current decline. The decision, expected late at night in India, will only be reflected in Indian markets tomorrow. Investors are keenly watching the Fed’s conclusions on GDP growth and interest rates to gauge if these will entice capital flows back to the US, potentially impacting investments in India. Should US growth prospects improve, there would be a stronger incentive for investors to return; otherwise, the focus on India might persist.
Currently, the Indian market lacks any significant motivators for a bullish trend. Although government officials express optimism about GDP growth recovery, the market remains sceptical. On Tuesday night, the GIFT Nifty closed at 24,352, slightly improving to 24,365 this morning, suggesting the Indian market may open with losses today.
The US markets also witnessed a slump yesterday, with the Dow Jones experiencing its ninth consecutive day of decline—the longest losing streak since 1978. On Tuesday, the Dow fell by 267.58 points (0.61%) to 43,449.90. The S&P 500 declined by 23.47 points (0.39%) to 6,050.61, while the Nasdaq Composite shed 64.83 points (0.32%) to close at 20,109.06. Investors are hopeful for a quarter-percent interest rate cut from the Fed and await its stance on GDP growth and monetary policy.
Among individual stocks, Nvidia, a market favourite for the past two years, fell by 1.7% yesterday, while Tesla showed gains. Tesla’s CEO, Elon Musk, saw his wealth soar to $486 billion, surpassing Jeff Bezos ($250 billion) and Mark Zuckerberg ($219 billion) combined.
US futures today are displaying mixed trends. The Dow is up by 0.10%, the S&P has gained 0.05%, while the Nasdaq is down by 0.08%. Meanwhile, the yield on the US 10-year Treasury note rose to 4.389%.
In Europe, all major indices except France's closed lower on Tuesday. In Asia, markets are mixed today, with Japan's Nikkei falling 0.55% and South Korea's index gaining 0.60%.
Indian markets continued their decline on Tuesday, opening lower and falling throughout the session to end near the day’s lowest levels. All sectors posted losses, with banking, financials, oil and gas, auto, and metals being the worst affected. The Nifty closed 332.25 points lower (1.35%) at 24,336.00, while the Sensex ended the day at 80,684.45, down 1,064.45 points (1.30%). The Bank Nifty dropped by 746.55 points (1.39%) to 52,834.80. Midcap and Smallcap indices also slipped by 0.57% and 0.68%, respectively.
Foreign investors were net sellers in the Indian cash market, offloading ₹6,409.86 crore on Tuesday. Domestic funds and financial institutions provided some relief by making net purchases of ₹2,706.48 crore. The broader market reflected the bearish trend, with 1,521 stocks advancing and 2,502 declining on the BSE. Similarly, 955 stocks advanced while 1,862 declined on the NSE.
Technically, the Nifty remains below all its moving averages. Key support levels are expected in the 24,200–24,000 region, with resistance at 24,545 and 24,620.
In corporate developments, JSW Energy is reportedly in talks with South Korea's LG Energy for a joint venture to establish a 10 GWh battery and energy storage systems plant at a projected cost of $15 billion. Jindal Steel & Power has signed an agreement to acquire a 31.2% stake in Renew Green Energy Solutions, aiming to secure cheaper electricity. Ambuja Cements’ board has approved the merger of Sanghi Industries and Penna Cement, which would increase its annual production capacity to 100 million tonnes. Meanwhile, Va Tech Wabag lost a ₹2,700 crore seawater desalination project from Saudi Arabia due to procedural lapses.
Gold prices fluctuated ahead of the Fed’s interest rate decision. Internationally, gold saw a slight decline, closing at $2,647.30 per ounce yesterday, before inching up to $2,649 this morning. In Kerala, gold prices rose by ₹80 per ounce to ₹57,200. Silver, however, declined to $30.46 per ounce.
In the currency market, the dollar index marginally rose to 106.96 yesterday but edged down to 106.93 this morning. The rupee weakened further, with the dollar closing at a record high of ₹84.90, gaining four paise. During trading, the dollar briefly touched ₹84.92 and closed at ₹85.00 in the holiday market.
Crude oil prices continued to fall. Brent crude closed at $73.19 per barrel and edged slightly higher to $73.23 this morning. WTI crude traded at $70.10, while UAE Murban crude stood at $73.26.
Cryptocurrencies showed mixed movements after recent gains. Bitcoin hovered near $1,06,000 yesterday, while Ether dropped to $3,880.
Industrial metals faced a decline yesterday, driven by the absence of a stimulus package announcement from China. Copper fell by 1.02% to $8,851.10 per tonne, aluminium dropped by 0.99% to $2,541.04, and zinc, lead, tin, and nickel also posted losses.
Sensex 30: 80,684.45 (-1.30%)
Nifty50: 24,336.00 (-1.35%)
Bank Nifty: 52,834.80 (-1.39%)
Midcap 100: 59,101.90 (-0.57%)
Smallcap 100: 19,398.45 (-0.68%)
Dow Jones: 43,449.90 (-0.61%)
S&P 500: 6,050.61 (-0.39%)
Nasdaq: 20,109.06 (-0.32%)
Dollar ($): ₹84.90 (+₹0.04)
Dollar Index: 106.96 (+0.10)
Gold (ounce): $2,647.30 (-$0.10)
Gold (pound): ₹57,200 (+₹80.00)
Crude (Brent): $73.19 (-$0.70).
