Six things happened on the stock market overnight: US Fed meeting gifting Nifty

 Six things happened on the stock market overnight: US Fed meeting gifting Nifty

The key indexes of the home market are expected to begin weakly on Wednesday, mirroring a combination of foreign signals and with GIFT Nifty down over 25 points from Tuesday's closing on Nifty Futures.

A surge on Wall Street led to a higher opening for Asian shares.

The local benchmark indexes, the Sensex and the Nifty 50, halted their two-day winning run on Tuesday and concluded October's last trading day down. The US Federal Reserve's announcement of interest rates was preceded by investor nervousness, persistent outflows of foreign capital, and escalating tensions in the Middle East.

While the Nifty 50 closed the day down 61 points, or 0.32%, at 19,079.60, the Sensex ended the day down 238 points, or 0.37%, at 63,874.93.

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., the market would be guided moving forward by the US Federal Reserve's policy decision, which is anticipated on Wednesday. Investors should also keep an eye on the economic data that is scheduled for publication on Wednesday, which includes the US Consumer Confidence Index, the US and UK PMI, the India GDP, and the core CPI for Europe.

The auto industry will be highlighted as management commentary indicates that sales during the Navratri holiday were robust, and OEMs are anticipated to post excellent volume gains for the month of October. Regarding the stocks, we will be focusing on Sun Pharma, Tata Steel, Britannia, Heromotcorp, Godrej Consumer, and Ambuja Cement since they are going to release their Q2 results.

The Fiscal Deficit of India

The fiscal deficit for India for the first half of FY24 was ₹7.02 lakh crore. 39.3% of the estimated amount was spent on the deficit for the whole year. According to official figures issued on Tuesday, the production of eight main infrastructure sectors—which together account for two-fifths of India's industrial output—expanded at a robust 8.1% in September. With the exception of the fertilizer industry, seven sectors had their production growth drop down, making this the weakest rate in four months.

GIFT Smart

The GIFT Nifty is following conflicting global trends and has lost over 25 points from Tuesday's finish on Nifty Futures. As to the analysis of Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, the index is now trading between 18,900 and 19,250, forming a broad range. Any breakout in either direction is expected to initiate trending movements. The overall trend is still down, and an uptrend restart would only be indicated by a closing above 19,300.

Markets in Asia

The yen rose from close to its lowest point this year, according to a Bloomberg report, after Japan's foreign currency boss said that he was prepared to intervene. Japanese stocks increased by more than 2% as investors were relieved that the Bank of Japan had only slightly modified its ultra-loose policies. Hong Kong futures fell while benchmark indices increased in South Korea and Australia.

Wall Street witnessed gains on Tuesday for the second day in a row as investors ignored early weakness in front of a Federal Reserve statement. Analysts anticipate that the Fed will maintain interest rates on Wednesday, according to reports in the media.

At 33,052.87, the Dow Jones Industrial Average closed with a 0.4 percent gain. The tech-heavy Nasdaq Composite Index increased by 0.5 percent to 12,851.24, while the broad-based S&P 500 gained 0.7 percent to 4,193.80.

With a 0.4 percent gain, the Dow Jones Industrial Average finished at 33,052.87. The broad-based S&P 500 climbed 0.7 percent to 4,193.80, while the tech-heavy Nasdaq Composite Index advanced by 0.5 percent to 12,851.24.

Base Oil

Oil prices rose somewhat in early Asian trading on Wednesday, according to a Reuters report, in anticipation of significant meetings of central banks worldwide this week, including the US Federal Reserve and the Central Bank of England. The latest developments in the Israel-Hamas conflict are another topic that the market is closely monitoring.

Brent January crude futures increased 36 cents, or 0.4%, to $85.38 a barrel at 0040 GMT after falling $1.33 on Tuesday. Tuesday marked the expiration of the contract, and Brent December futures closed 4 cents down at $87.41 a barrel.

US West Texas Intermediate oil futures climbed 28 cents, or 0.3%, to $81.30 per barrel today after losing $1.29 in the previous session.