Indian equity benchmark indices BSE Sensex and Nifty 50 opened in the red on Wednesday, as the momentum gained from China’s stimulus measures looked to be fading.
At opening bell, the BSE Sensex was down 148.49 points, or 0.17 per cent, at 84,765, while the Nifty 50 was at 25,897, down 43 points, or 0.17 per cent.
Nifty crossed 1000 points in 38 trading sessions supported by positive domestic cues, healthy FIIs, and the start of the rate cut cycle by the US Fed. We expect the ongoing momentum to continue in the market with sectorial rotation. Investors would watch out for US Consumer Confidence data, said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal.
Global Cues
Markets in the Asia-Pacific region were largely stable on Wednesday morning, while futures for Hong Kong’s Hang Seng Index indicated a potential 4 per cent increase when trading begins, with HSI futures at 19,763 compared to the last close of 19,000.
In Japan, the Nikkei 225 dipped slightly, while the broader Topix gained 0.3 per cent. South Korea’s Kospi rose 0.4 per cent, and the small-cap Kosdaq increased by 0.43 per cent.
That apart, a widely followed global stock index rose to a record high and copper prices hit their strongest level in 10 weeks on Tuesday after China unveiled stimulus measures to support its economy.
The Dow and S&P 500 eked out record closing highs as mining stocks surged there. Oil prices climbed to a three-week high on the news from China, the world’s top crude importer.
People’s Bank of China Governor Pan Gongsheng announced plans to lower borrowing costs and inject more funds into the economy, as well as to ease households’ mortgage repayment burden. The announcement included a planned 50 basis point cut to banks’ reserve requirement ratios.
On Wall Street, the Dow Jones Industrial Average rose 83.57 points, or 0.20 per cent, to 42,208.22, the S&P 500 rose 14.36 points, or 0.25 per cent, to 5,732.93 and the Nasdaq Composite rose 100.25 points, or 0.56 per cent, to 18,074.52.
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