US job growth has come in stronger than expected, reviving uncertainty on the timing of US Fed's interest rate cuts and weighing on Wall Street. Bond yields climbed and gold remained volatile.
Asian markets, however, opened firm this morning, brushing aside US concerns. Back home, Indian indices ended almost flat on Wednesday, and the Nifty’s attempt to decisively cross 26,000 continues.
Gift Nifty closed at 25,964 in overnight derivatives trade at GIFT City, rose to 25,998 early morning and then eased slightly, signalling a largely flat start for Indian markets.
Infosys ADRs fell 5.12 percent in New York. Wipro dropped 4.40 percent but recovered 1.67 percent in after-hours trade.
Stronger-than-expected non-farm payrolls data for January has reduced expectations of an early rate cut by the US Federal Reserve.
• Non-farm jobs rose by 1.3 lakh, more than double estimates; 1.24 lakh of these were in healthcare
• Unemployment rate dipped from 4.4 percent to 4.3 percent
• Markets now see lower probability of a June rate cut
The three major US indices ended marginally lower on Wednesday:
• Dow Jones fell 66.74 points (0.13 percent) to 50,121.40
• S&P 500 slipped 0.34 points to 6,941.47
• Nasdaq declined 36.01 points (0.16 percent) to 23,066.47
US futures were mildly higher this morning, with Dow up 0.15 percent, S&P 0.16 percent and Nasdaq 0.08 percent.
In Europe, markets closed mixed. The FTSE 100 rose 1.14 percent amid political stability in the UK, while German and French indices fell. Dassault Systemes tumbled 20.81 percent on weak earnings, while Siemens Energy surged 8.4 percent after tripling profit.
Asian markets traded mostly higher:
• Nikkei crossed 58,000 before paring gains
• Australia up 0.70 percent
• South Korea up 2.1 percent
• Singapore index crossed 5,000 for the first time
• Hong Kong down 0.25 percent; China down 0.15 percent at open
The Nifty briefly crossed 26,000 on Wednesday but failed to sustain momentum. IT stocks dragged the index lower, while broader markets held marginal gains.
• Auto, pharma, healthcare and PSU banks gained strongly
• Hopes of higher central government medical reimbursement rates lifted hospital chains
• Eicher Motors jumped 6.45 percent to a record ₹7,805 on strong results
• SBI rose over 10 percent in three days to a record ₹1,187.50
SBI, with a market capitalisation of ₹10.9 lakh-crore, overtook TCS to become India’s fourth most valued company after Reliance Industries, HDFC Bank and Bharti Airtel.
Trade deal wording changed again
• “India agreed” to $500 billion in imports changed to “India aims”
• Agriculture and pulses removed from duty-free import list
• Reference to digital tax waiver for tech giants dropped
• Map depiction issue also altered after objections
These changes have raised questions over the contours of a possible interim deal expected in March.
Sensex fell 40.28 points (0.05 percent) to 84,233.64.
Nifty declined 18.70 points (0.07 percent) to 25,953.85.
Bank Nifty rose 0.20 percent to 60,745.55.
Mid cap 100 and small cap 100 indices edged up marginally.
Market breadth was negative. On BSE, 1,913 stocks advanced while 2,316 declined.
FIIs remained net buyers, purchasing ₹943.81 crore in cash markets. DIIs were net sellers to the tune of ₹125.36 crore.
• Immediate support: 25,910 and 25,845
• Resistance: 26,000 and 26,060
• Sustained move above 26,000 may open path to 26,400–26,500
Gold crossed $5,100 per ounce before retreating to $5,085. Silver remained elevated at $84.41 per ounce.
In Kerala, 22-carat gold closed at ₹1,17,040 per sovereign after intraday volatility. On MCX, gold ended at ₹1,58,650 per 10 grams.
Brent crude slipped to $69.63 per barrel, with WTI at $64.97. Natural gas rose to $3.22.
The dollar index rose to 96.83 and edged up to 96.90 this morning.
The rupee weakened by 12 paise to close at ₹90.70 per dollar.
Cryptos remain under pressure
Bitcoin is trading below $67,500, down 44 percent over the past year. Ether remains below $1,970 and Solana below $80.
Sensex: 84,233.64 (-0.05%)
Nifty 50: 25,953.85 (-0.07%)
Bank Nifty: 60,745.35 (+0.20%)
Mid cap 100: 60,754.55 (+0.03%)
Small cap 100: 17,455.00 (+0.02%)
Dow Jones: 50,121.40 (-0.13%)
S&P 500: 6,941.47 (0.00%)
Nasdaq: 23,066.47 (-0.16%)
Dollar: ₹90.70 (+0.12)
Gold (ounce): $5,085.10
Gold (sovereign): ₹1,17,040
Brent crude: $69.63
