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Attention stock market enthusiasts! The Indian equity indices, Sensex and Nifty 50, are poised to open higher on Thursday, buoyed by positive global cues and domestic market sentiment.
Asian markets are trading in the green, taking their cue from overnight gains in the US stock market, where soft economic data has fueled speculation of interest rate cuts by the Federal Reserve, boosting investor optimism.
In India, the market sentiment has received a further boost after the National Democratic Alliance (NDA) leaders pledged their support to Narendra Modi's Bharatiya Janata Party (BJP), paving the way for the alliance to form a government for the third term.
On Wednesday, the Indian stock market witnessed a remarkable recovery with the benchmark indices gaining over 3% each, as investors turned optimistic over the prospect of political stability and supportive policies in the coming months.
The Sensex surged 2,303.19 points, or 3.20%, to close at 74,382.24, while the Nifty 50 settled 735.85 points, or 3.36%, higher at 22,620.35.
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd., the market's focus is expected to shift towards the government formation process, with a keen eye on key cabinet portfolios, including Finance, Defense, Roads, Energy, Commerce, and Railways.
In the meantime, here are some key domestic and global market cues that will influence the Sensex today:
Asian Markets: Asian markets are trading higher, tracking the overnight rally on Wall Street amid increased interest rate cut hopes. Japan's Nikkei 225 surged 1.12%, while the Topix rose 0.65%. Hong Kong's Hang Seng index futures indicated a weaker opening. South Korea's markets were closed for a public holiday.
Gift Nifty Today: Gift Nifty was trading around the 22,680 level, a premium of nearly 100 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices.
Wall Street: The US stock market ended higher on Wednesday with the S&P 500 and Nasdaq hitting record closing highs led by technology stocks. The Dow Jones Industrial Average gained 96.04 points, or 0.25%, to 38,807.33, while the S&P 500 rallied 62.69 points, or 1.18%, to 5,354.03. The Nasdaq Composite ended 330.86 points, or 1.96%, higher at 17,187.91.
Among stocks, Nvidia share price jumped 5.2% to end at $1,224.40, valuing the company at $3.012 trillion, overtaking Apple to become the world's second-most valuable company. Apple shares gained 0.8% with its market capitalization at $3.003 trillion.
Intel shares rose 2.5% and CrowdStrike Holdings share price jumped 11.9%. Hewlett Packard Enterprise shares rallied 10.7%, while Dollar Tree stock price slipped 4.9%.
Lok Sabha Election Results Update: The members of the National Democratic Alliance (NDA), including Nitish Kumar and Chandrababu Naidu, have elected Narendra Modi as their leader. Now, caretaker Prime Minister Modi is expected to stake his claim to form the new government at the Centre.
US Private Payrolls: Hiring by US private employers slid to a four-month low in May. Private payrolls increased by 152,000 jobs last month, after rising by a downwardly revised 188,000 in April, the ADP Employment report showed. Economists polled by Reuters had forecast private employment increasing by 175,000 last month.
US Services PMI: The US services sector snapped back into growth mode in May after a short-lived contraction in the prior month, Reuters reported. The Institute of Supply Management (ISM) said its non-manufacturing purchasing managers index (PMI) rose to 53.8 last month from 49.4 in April. The reading in May was the highest since last August.
Treasury Yields: US 10-year Treasury yields fell to a two-month low on Wednesday after weak jobs growth data. Benchmark 10-year note yields were last down 5 basis points at 4.289% and got as low as 4.287%, the lowest since April 1, Reuters reported. Two-year note yields fell 4 basis points to 4.731% and reached 4.726%, the lowest since May 16.
Oil Prices: Crude oil prices gained for a second session even as Saudi Arabia signaled concerns over the demand outlook. Brent crude oil rose 0.52% to $78.82 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.66% to $74.56.