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Stock market today: Indian equity markets closed nearly unchanged on Tuesday, hovering close to their all-time highs, as market participants awaited critical data from the United States that could influence the magnitude of a potential interest rate reduction later this month.
The NSE Nifty 50 and the BSE Sensex ended the session flat at 25,279.85 and 82,555.44 points, respectively.The Nifty 50 had previously experienced a 4.7% gain over a thirteen-session rally, its longest streak ever, until Monday. Both indices reached record highs in the prior trading session.
Rahul Sharma, head of technical research at Mumbai-based investment advisory firm Equity99, told Reuters, “The Nifty index will likely hover around record highs unless there is some positive news.”
Investors are now focusing on upcoming U.S. economic data, including the U.S. ISM manufacturing survey scheduled for release later in the day and the employment data on Friday. These indicators are expected to provide guidance on the scale of a potential U.S. rate cut during the Federal Reserve’s meeting on Sept. 17-18.
“Interest rate futures are predicting at least a 25-basis-point rate cut at the meeting. They now price in around 100 basis points of Fed cuts this year across three meetings, meaning they foresee a big 50 bps cut at one of them.”
Lower interest rates in the U.S. typically attract more foreign fund inflows into emerging markets such as India.
During the trading session, nine out of the thirteen major sectoral indexes were in negative territory, although the losses were minimal. The heavyweight Nifty energy index declined by 0.7%, while the financial services sector rose by 0.8%.
The NSE Nifty 50 and the BSE Sensex ended the session flat at 25,279.85 and 82,555.44 points, respectively.The Nifty 50 had previously experienced a 4.7% gain over a thirteen-session rally, its longest streak ever, until Monday. Both indices reached record highs in the prior trading session.
Rahul Sharma, head of technical research at Mumbai-based investment advisory firm Equity99, told Reuters, “The Nifty index will likely hover around record highs unless there is some positive news.”
Investors are now focusing on upcoming U.S. economic data, including the U.S. ISM manufacturing survey scheduled for release later in the day and the employment data on Friday. These indicators are expected to provide guidance on the scale of a potential U.S. rate cut during the Federal Reserve’s meeting on Sept. 17-18.
“Interest rate futures are predicting at least a 25-basis-point rate cut at the meeting. They now price in around 100 basis points of Fed cuts this year across three meetings, meaning they foresee a big 50 bps cut at one of them.”
Lower interest rates in the U.S. typically attract more foreign fund inflows into emerging markets such as India.
During the trading session, nine out of the thirteen major sectoral indexes were in negative territory, although the losses were minimal. The heavyweight Nifty energy index declined by 0.7%, while the financial services sector rose by 0.8%.
