Asian markets saw an uptrend last week, with tech stocks leading the US stock market to strong gains. This week, investors will be keeping an eye on various market triggers such as Q4 results, auto sales data, macroeconomic data, the US Federal Reserve’s interest rate decision, Israel-Iran conflict, crude oil prices, and other global market cues.
On Friday, the Indian stock market indices ended lower after a five-day winning streak. The Sensex closed at 73,730.16, down 0.82%, while the Nifty 50 settled at 22,419.95, a 0.67% decrease.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, market momentum is expected to resume with a focus on stock-specific action due to ongoing result announcements and sector rotation. Monday’s market reaction will be influenced by US PCE data and results from several private banks.
Asian markets traded higher on Monday, with South Korea’s Kospi up 0.63% and the Kosdaq surging 0.94%. Japan’s markets were closed for a public holiday, while Hong Kong’s Hang Seng index futures suggested a weak opening.
The Gift Nifty was trading around 22,650 levels, indicating a premium of nearly 95 points from the Nifty futures’ previous close, signaling a gap-up start for the Indian stock market indices.
In the US, the stock market ended higher on Friday, driven by a rally in megacap growth stocks following strong quarterly results from Alphabet and Microsoft, along with moderate inflation data. The Dow Jones Industrial Average gained 0.40%, the S&P 500 rose by 1.02%, and the Nasdaq Composite ended 2.03% higher.
Alphabet’s share price surged by 10%, reaching a record high, after announcing its first-ever dividend, a $70 billion stock buyback program, and better-than-expected first-quarter results. Microsoft’s shares also rose 1.8% after exceeding Wall Street estimates in third-quarter revenue and profit.
US monthly inflation in March rose moderately, with the PCE price index increasing by 0.3%. The US dollar softened on Monday, influenced by a holiday in Japan, while crude oil prices fell due to US inflation data affecting the prospects of interest rate cuts.
Overall, the markets continue to be influenced by a mix of domestic and global factors, making it crucial for investors to stay informed and seek advice from certified experts before making investment decisions.