Indian Stock Market: Key Things, Market Overnight Changes - Gift Nifty, US GDP, Bitcoin Price Rally

Asian markets fell as US stock indexes closed in the red ahead of key inflation data. Indian GDP data to be released.

Asian markets experienced a decline, while US stock indexes closed in the red overnight in anticipation of key US inflation data. The US GDP growth in the fourth quarter saw a slight downward revision, and Indian GDP data for the third quarter of FY24 is set to be released today.

Investors are closely monitoring the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation gauge of the US Federal Reserve, for insights into the potential timing of an interest rate cut by the Fed.

Recent consumer and producer price data indicating persistent inflation, coupled with the strength of the US economy and statements from certain Fed officials, have led to a reduction in market expectations for the Fed's initial rate cut in June from March, as reported by Reuters.

Indian stock indices closed over one percent lower on Wednesday, with selling observed across various sectors, particularly impacting mid- and small-caps.

The Sensex saw a decline of 790.34 points, or 1.08%, closing at 72,304.88, while the Nifty 50 dropped 247.20 points, or 1.11%, to end at 21,951.15.

As the market approaches the release of India's third-quarter GDP data and the monthly F&O expiry on Thursday, along with preliminary fourth quarter US GDP figures and core PCE data, investors are advised to brace for volatility amidst these significant events, according to Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

In the global arena, Asian markets mirrored the overnight losses on Wall Street, with Japan's Nikkei 225 and Topix falling by 0.7% and 0.3% respectively, while South Korea's Kospi and Kosdaq saw declines of 0.8% and 0.6%. Futures for Hong Kong's Hang Seng Index indicated a slightly higher open.

US stock indexes closed marginally lower on Wednesday, ahead of crucial inflation data that is expected to impact expectations regarding the timing of a potential interest rate cut by the Federal Reserve. The Dow Jones Industrial Average fell by 23.39 points, the S&P 500 dropped by 8.42 points, and the Nasdaq Composite finished down by 87.56 points.

Key economic indicators, including the revision of US GDP growth in the fourth quarter and Japanese industrial production and retail sales data, are being closely monitored by investors. Additionally, Bitcoin prices surged past $63,000 driven by strong demand from new US Bitcoin exchange-traded funds.

The US dollar remained strong in anticipation of the key inflation data, with the dollar index up by 0.3% at 103.92. The yen touched 150.68 in early Asian trading, nearing October's low of 151.74.

The National Stock Exchange (NSE) announced changes in the composition of the Nifty 50 and Nifty Next 50 indices, with Shriram Finance replacing UPL in the former and Jio Financial Services being included in the latter, effective from March 28, 2024.

In conclusion, as markets navigate through various economic data releases and global developments, investors are advised to stay informed and seek expert advice before making any investment decisions.

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