Stock Market LIVE Updates: GIFT Nifty signals higher open for Sensex, Nifty; China rolls out support
At 7:28 AM, GIFT Nifty futures were trading at 25,982, around 70 points ahead of Nifty futures’ last close.
On Monday, Indian equity benchmark indices BSE Sensex and Nifty 50 climbed to record highs, before finishing the trading session at all-time high levels.
The BSE Sensex gained 384 points, or 0.45 per cent, to close at 84,928.61, after touching a record high of 84,980 during the day.
The Nifty 50 also touched an all-time high of 25,956, before closing 148 points higher or 0.57 per cent ahead at 25,939.
Asian stocks were perched at their highest levels in more than two months on Tuesday as expectations for more US rate cuts kept risk sentiment aloft, while investors awaited a policy decision from Australia’s central bank.
In an eagerly awaited press conference, China’s top financial regulators including the central bank unveiled a slew of measures to aid the stuttering economy, including moves to reduce mortgage rates for existing homes.
The Reserve Bank of Australia is widely expected to stand pat on rates but the Federal Reserve’s 50 basis point cut last week has raised some expectations Australia could follow the Fed.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.04 per cent to 586.31, while Japan’s Nikkei was the biggest mover in early trading, soaring 1.69 per cent to a near three-week high ahead of an eagerly awaited speech by Bank of Japan Governor Kazuo Ueda.
China’s central bank on Monday lowered its 14-day repo rate by 10 basis points, days after disappointing markets by not cutting longer-term rates.
Overnight, the US stocks closed modestly higher as traders digested the Fed’s big move last week, with policymakers explaining the need for the 50 bp cut.
Markets are currently evenly split on whether the US central bank will go for another 50 bps cut or a 25 bps cut in November, CME Fedwatch tool showed. They are pricing in 76 bps of easing this year.
Brown Brothers Harriman Senior Markets Strategist Elias Haddad said the market is overestimating the Fed’s capacity to ease. “However, it will likely take strong US jobs data to trigger a material upward reassessment in Fed funds rate expectations.”
The next non-farm payrolls report is due October 4 and until then, Haddad said a more dovish Fed and a strong US economy offer financial market risk sentiment support and can further undermine the dollar mostly against growth-sensitive currencies.
The dollar index, which measures the US currency against six rivals, was at 100.95, not far from the one-year low of 100.21 touched last week. The yen was little changed at 143.65 per dollar.
In commodities, oil prices were slightly higher in early trading, with Brent crude futures up 0.26 per cent at $74.09 a barrel, while US crude futures were up 0.3 per cent at $70.6. Oil prices had slid on Monday on demand worries as well as weak economic data from Europe.
(With inputs from Reuters.)
