10 Big Market Updates: Nifty Signals Weak Start Amid Global Market Jitters, US Fed Updates, and More

The Indian stock market may see a weak start today, influenced by global market trends and domestic factors. Here’s everything you need to know:

1. Indian Markets to Open Lower

The Sensex and Nifty 50 are likely to dip at the opening bell due to global market weakness. Gift Nifty is trading near 23,495, about 105 points lower than the previous Nifty futures close, signaling a negative start.

2. Global Markets Under Pressure

Asian markets showed mixed trends this morning:

• Japan’s Nikkei 225 dropped 1.16%, while the Topix slipped 0.65%.
• South Korea’s Kospi rose 1.06%, but the Kosdaq declined 0.62%.
• Hong Kong’s Hang Seng futures suggested a stronger opening.

3. Wall Street Decline

US markets ended last week on a weak note as concerns about slower Federal Reserve rate cuts weighed on sentiment:

• Dow Jones fell 305 points (-0.70%).
• S&P 500 dropped 78 points (-1.32%).
• Nasdaq plunged 427 points (-2.24%).
  Notable losers included Applied Materials (-9.2%) and Moderna (-7.3%).

4. Fed Chair Jerome Powell’s Statement

US Federal Reserve Chair Jerome Powell emphasized that inflation is still above the 2% target, which means the Fed won’t rush into cutting rates. However, he hinted at a gradual shift to neutral monetary policy if inflation continues to ease.

5. US Retail Sales Beat Estimates

US retail sales grew 0.4% in October, surpassing the expected 0.3%, following a strong 0.8% rise in September.

6. CLSA Ups India Allocation

Global brokerage CLSA increased its India allocation to 20% overweight while reducing its China exposure. CLSA believes India offers stability, especially with steady energy prices and strong domestic demand, even as global uncertainties loom.

7. Japan Machinery Orders Drop

Japan’s core machinery orders fell 0.7% in September (MoM), defying expectations of a 1.9% rise. On a YoY basis, orders dropped 4.8%, reflecting economic uncertainty.

8. Oil Prices Slide

Crude oil prices declined as concerns about oversupply and weak demand in China persist:

• Brent Crude: $70.95/barrel (-0.13%).
• WTI Crude: $66.81/barrel (-0.31%).

9. US Dollar Strengthens

The US dollar continues its rally, buoyed by rising Treasury yields and a cautious Fed outlook. The dollar index was steady at 106.73, close to its one-year high of 107.07, marking gains in six of the last seven weeks.

10. Samsung’s Share Buyback Boost

Samsung Electronics announced a $7.2 billion buyback plan, causing its shares to jump 6.7% today. This adds to Friday’s 7.2% surge ahead of the announcement, signaling strong investor confidence.

Indian Market Recap:

On Thursday, the Sensex and Nifty both closed lower for the sixth consecutive session.

• Sensex: Down 110 points (-0.14%) to 77,580.
• Nifty 50: Down 26 points (-0.11%) to 23,532.

Analyst Insights:

Deepak Jasani from HDFC Securities predicts Nifty may trade between 23,338 and 24,099 this week, with a potential bounce likely. However, macroeconomic data, geopolitical tensions, and foreign fund flows will heavily influence market trends.

Stay tuned for updates as the markets react to these developments.