• India’s Nifty and Sensex opened with cautious optimism on Friday, having settled higher on Thursday.
• On Thursday, Nifty and Sensex rebounded firmly in tandem with the IT and auto sector stocks.
• India’s and US PMIs came in mixed. RBI Minutes read hawkish, dismiss premature policy pivot.

The primary benchmark indices for India, the Sensex 30 and Nifty 50, began Friday’s trading slightly higher following a strong recovery on Thursday. The gain in the Indian index is limited by the mixed trading in the Asian stock markets amid dismal Chinese indices.

The strong comeback in the IT and automotive sector stocks drove Thursday’s turnaround in Indian indices.

The rise in risk-taking also helped the late bounce in the Indian indexes in the tech-boost Asian and European stock markets. Global shares moved much higher after the US chipmaker Nvidia released an encouraging quarterly report that improved market sentiment overall.

Nifty and Sensex traders may be on edge due to a combination of hawkish Reserve Bank of India (RBI) meeting minutes and mixed preliminary business PMI data from the US and India.

The Bombay Stock Exchange (BSE) Sensex 30 is almost constant at 73,186.71, while the National Stock Exchange (NSE) Nifty 50 is showing gains of 0.08% for the day to trade at 22,236.75.

Stock market news

The top gainers on the Nifty on Thursday were ITC, Bajaj Auto, HCL Tech, Eicher Motors, and Coal India. IndusInd Bank, HDFC Bank, BPCL, Kotak Mahindra Bank, and Hindustan Unilever were the biggest losers, on the other hand.

India’s Manufacturing Purchasing Managers’ (PMI) Index fell from 56.9 in January to 56.7 in February, according to data released by HSBC Bank on Thursday. In the meantime, the Services PMI increased from 61.8 to 62.0 within the same time frame. Compared to the prior reading of 61.2, the Composite PMI was 61.5.

Governor Shaktikanta Das said in the RBI Minutes that “monetary policy must remain vigilant at this juncture and not assume that our job on the inflation front is over.” We have to stay dedicated to completing the sometimes treacherous “last mile” of deflation.

While the S&P Global Services PMI was slightly down to 51.3 from 52.5 in February, the S&P Global Manufacturing PMI increased to 51.5 from 50.7.

Federal Reserve (Fed) policymakers have been defying expectations of early rate decreases in their speeches.

According to Jefferies, by 2030, the Indian stock market should reach $10 trillion.

In business news, the Aditya Birla Group’s flagship firm, Grasim Industries Limited, debuted Birla Opus, a new decorative paint brand with a three-year revenue target of ₹10,000 crore.

Customers of Bharti Airtel now have access to in-flight roaming options, which let them stay in touch while flying.

With the ₹316 crore that SpiceJet raised, ₹1,060 was raised in total.

A surge in excitement in AI propelled the US stock markets to a strong rally on Thursday. As of the time of publishing, US stock futures are up 0.05%.

Wednesday night, after the close, Nvidia revealed its Q4 earnings. Nvidia reported $5.16 earnings per share (EPS) as opposed to the predicted $4.64 and $22.10 billion in revenue as opposed to $20.62 billion. The pioneer of AI stated that its sales for the current quarter are estimated to be $24.0 billion.

According to Wednesday’s Fed Minutes, “most participants emphasized the importance of carefully assessing incoming data in judging whether inflation is moving down sustainably to 2 percent and noted the risks of moving too quickly to ease the stance of policy.”

According to the CME FedWatch Tool, markets are currently pricing in just around a 30% possibility that the Fed could start easing rates in May, which is significantly less than the over 80% chance that was the case a month ago. The likelihood of a rate cut at the June meeting is currently 70%, down from 77% as of yesterday.

The five-year Loan Prime Rate (LPR) was lowered by a record 25 basis points by the People’s Bank of China (PBoC) from 4.20% to 3.95%. Tuesday’s PBOC rate drop did not thrill investors.

For the rest of the day, all eyes will be on the Fed’s Monetary Policy Report and Fedspeak.

Conclusion

In the opulent labyrinth of financial markets, each day heralds a new mosaic of potential gains and calculated risks. As we close the chapter on the market’s opening, we find derived value, investment opportunities, and the insight of technical analysis poised to guide discerning investors.

Sitting on the precipice of the unknown, the day unfolds, promising echoes of the past mingling with the aspirations of the present. Market participants, from the most seasoned to the greenest, are encouraged to step forth with knowledge and equipoise. A consistent and strategic approach, fortified by astute observation and a readiness for the unexpected, is the bedrock upon which successful investment is predicated.

The stock market is a capricious master, unpredictable with certainty, yet rich with potential for those who dare to tread wisely. As the chimes of trading echo, it is your due diligence, foresight, and resilience that will carve your path amid the complexities of today’s market.