Asian markets traded higher, while the US stock market ended lower overnight, after the Federal Reserve raised interest rates by 25 bps
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to remain volatile on Thursday after the US Federal Reserve delivered its first interest rate hike in three years, while signaling the possibility of another increase later this year.
The trends on Gift Nifty also signal a weak start for the Indian benchmark indices, Nifty 50 and Sensex, today. The Gift Nifty was trading around 23,219 level, a discount of nearly 53 points from the Nifty futures’ previous close.
Here are five key factors to watch out for ahead of the opening of the Indian stock market today
Asian Markets
Asian stock market traded higher on Thursday as crude oil prices eased. Japan’s Nikkei 225 rose 0.30%, while the Topix gained 0.80%. The Kospi added 0.29%, while the Kosdaq advanced 0.57%. Hong Kong Hang Seng index futures indicated a lower opening
Wall Street
US stock market ended lower on Wednesday after the Federal Reserve hiked interest rate for the first time in over three years.
The Dow Jones Industrial Average plunged 631.33 points, or 1.21%, to 51,461.78, while the S&P 500 declined 33.59 points, or 0.44%, to 7,552.14. The Nasdaq Composite closed 3.15 points, or 0.01%, lower at 25,978.43
US Fed Rate Hike
The US Federal Reserve raised interest rate for the first time in over three years, as the Kevin Warsh-led Federal Open Market Committee (FOMC) moves to battle rising inflation. The benchmark Federal Fund rates were raised by 25 basis points to 3.75% – 4%, matching market expectations. Fresh quarterly projections indicate further tightening is on the table, with 16 officials projecting at least one more rate hike in 2026.
Trump Tariffs
The US House of Representatives passed legislation to give President Donald Trump new powers to impose tariffs up to 100% on countries that purchase Russian petroleum products. The president is expected to sign the bill in the coming days. The top five purchasers of Russian petroleum products, which include China, India and Turkey, could be hit with broad new tariffs.
Crude Oil Prices
Crude oil prices extended fall as supply disruption concerns eased after reports that Saudi Arabia was offering extra crude cargoes through Oman. Brent crude futures declined 1.42% to $104.33 a barrel, while US West Texas Intermediate futures were down 1.15% to $101.25.
