Indian equity benchmark indices started on a slightly positive note on Monday, even as investors digested downbeat economic data coming out of China.
At opening bell, the BSE Sensex was up 48 points, or 0.06 per cent, at 82,939, while the Nifty 50 was at 25,406, up 50 points, or 0.2 per cent.
Market View by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Globally equity markets will be focused on the Fed rate action on Wednesday which is likely to influence the stock market trend in the near-term. The first rate cut by the Fed in four years is a foregone conclusion, the only uncertainty is about the extent of the rate cut, that is, whether the cut will be 25 bp or 50 bp. The market will also be keenly watching the Fed commentary on the evolving economic outlook.
Global Cues
Asian stocks in other markets made a cautious start on Monday in a week that is almost certain to see the start of an easing cycle in the US with the only question being the size of the cut, with markets split on the chance of an outsized move.
Central banks in Japan and the UK also meet this week, with both expected to stand pat for now, while a packed data schedule includes US retail sales and industrial production.
Holidays in China, Japan, South Korea and Indonesia made for thin conditions and early moves were modest. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat, after bouncing 0.8 per cent last week.
Japan’s Nikkei was shut but futures traded at 36,490 compared to a cash close of 36,581 as recent yen gains pressured exporters. S&P 500 futures and Nasdaq futures were both a fraction firmer.
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