Flat Opening Expected in Indian Share Markets: US Fed Holds Rates Steady; L&T, Asian Paints, Titan in Focus for Q4 Results
Pre-Market Update: Know what's happening in Indian share markets today?
On Wednesday, May 8, the Indian markets are expected to open on a subdued note amid nervousness related to border escalation and the Federal Reserve reiterated its patience regarding interest rate cuts.
As of 07:37 am, Gift Nifty hovered near the 24,412 mark, showing a discount of about 5 points over the previous close of Nifty futures.
Taking cues from global trends, the US stock market ended higher on Wednesday, snapping a two-day losing streak. Asian markets were also trading mostly higher. The US Federal Reserve kept interest rates unchanged, while Chair Jerome Powell cautioned that higher tariffs could threaten economic stability by fuelling inflation and raising concerns about unemployment.
Regarding stock-specific action on Dalal Street, several major Indian companies are set to release their Q4 results today. While earnings will drive individual stock movements, the broader market trend is likely to be influenced by developments on the border front.
Larsen & Toubro, Titan Company, Asian Paints, Pidilite Industries, Britannia Industries, REC, Union Bank of India and Canara Bank will announce their Q4 earnings today.
Talking about institutional inflows, it has been strong in the last two weeks.
On May 07, Foreign Institutional Investors (FIIs) were net buyers, purchasing ₹2,585.86 crore worth of shares. Domestic Institutional Investors (DIIs) bought shares worth ₹2,378.49 crore during the same period.
FIIs remain net buyers for the last 15 trading sessions, infusing optimism in the Indian stock market, while DIIs followed the same action in the last trading session.
On Wednesday, Indian equity benchmarks closed in the green, overcoming concerns stemming from escalating tensions between India and Pakistan. The Sensex rose by 105.71 points (0.13%) to end at 80,746.78, while the Nifty 50 advanced 34.80 points (0.14%) to settle at 24,414.40.
Despite the prevailing geopolitical uncertainty, domestic factors continue to inject volatility into the markets. Yet, consistent foreign institutional investor (FII) inflows and supportive global trends are providing a stabilising effect.
Asian markets were trading mostly higher on Thursday, reacting to Wall Street’s overnight rally following the latest U.S. Federal Reserve policy update.
U.S. stock markets closed in positive territory on Wednesday following the Federal Reserve's decision to maintain current interest rates. The Dow Jones Industrial Average climbed 284.97 points (0.70%) to settle at 41,113.97. The S&P 500 rose by 24.37 points (0.43%) to close at 5,631.28, while the Nasdaq Composite advanced 48.50 points (0.27%) to end the session at 17,738.16.
The US Federal Reserve has opted to maintain its benchmark interest rates within the 4.25% to 4.5% range. Fed Chair Jerome Powell highlighted that while growing uncertainty has dampened the mood of consumers and businesses, the broader economy remains in stable condition. He further stated that although rate cuts could be considered in the future, any such move would depend on clear supporting economic data, emphasising that the Fed is not in a position to act in advance without greater clarity.
Gold prices moved higher following a statement from the US Federal Reserve highlighting concerns over inflation and weaknesses in the labor market, which added to economic uncertainty. Spot gold increased by 0.6% to $3,384.99 per ounce.
Crude oil prices remained mostly unchanged after a sharp drop of over $1 in the previous session. Brent crude futures stayed flat at $61.12 per barrel, whereas US West Texas Intermediate (WTI) crude edged up by 0.1% to trade at $58.12 per barrel.
Disclaimer: The article is for informational purposes only and not investment advice.
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