MARKET MAY INCH HIGHER AT OPENING BELL

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 20 points at the opening bell.

Global Markets:

The US Dow Jones index futures is currently down by 57 points, signaling a negative opening for US stocks today. Traders awaited more cues on monetary policy from the minutes of the Federal Reserve�s late-January meeting.

Asian stocks were mixed on Wednesday, as traders weighed big tech prospects ahead of Nvidia Corp.`s hotly anticipated earnings that dragged Wall Street away from its all-time highs.

In January, Japanese exports surpassed expectations, growing by 11.9% year-on-year due to increased overseas demand for automobiles and electronics. This exceeded the anticipated 9.5% rise and marked Japan`s fastest export growth since November 2022. Conversely, imports experienced a larger-than-expected decline of 9.6%, compared to the predicted 8.4% drop, reflecting sluggish domestic demand. Consequently, Japan`s trade balance unexpectedly shifted to a surplus of 240 billion yen ($1.60 billion) from a deficit of 410 billion yen in December.

In the US, the Nasdaq 100 dropped almost 1% while the S&P 500 fell below 5,000 in the last session. Nvidia`s stock also fell more than 4% ahead of its scheduled earnings announcement on Wednesday. Traders are keenly observing its result, seeking confirmation that the chipmaker can meet the high expectations associated with the artificial-intelligence boom.

The US 10-year bond yield is recorded at 4.27%. In the commodities market, Brent crude for April 2024 settlement was at $82.57 a barrel.

Domestic Equity Market:

The domestic benchmarks continued their upward trend for the sixth day on Tuesday, driven by gains in private banks. The market showed strong resilience, as the Nifty 50 index crossed the significant milestone of 22,000. In contrast, other Asian markets were relatively quiet, as China`s attempts to boost its property markets didn`t excite investors, and the likelihood of an immediate U.S. interest rate cut diminished. Within the domestic market, there was increased demand for bank, financial services, and media shares, while IT, auto, and metal shares experienced declines.

The barometer index, the S&P BSE Sensex gained 349.24 points or 0.48% to 73,057.40. The Nifty 50 index added 74.70 points or 0.34% to 22,196.95.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,335.51 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,491.33 crore in the Indian equity market on 20 February 2024, provisional data showed.

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