Stock Market Today: Indian stock markets opened on a slightly positive note on Monday, despite weak economic data from China. At the start of trading, the BSE Sensex rose by 48 points or 0.06 per cent to 82,939, while the Nifty 50 increased by 50 points (0.2 per cent) to 25,406.
GIFT Nifty
At 8:30 AM, GIFT Nifty futures were trading at 25,438, around 50 points above the previous close of Nifty futures.
Asian Markets
Asian markets made a cautious start on Monday as investors awaited key central bank meetings. The US Federal Reserve is expected to begin easing interest rates this week, but there is uncertainty over the size of the cut. Some market analysts believe a larger cut could be on the table. Central banks in Japan and the UK are also meeting this week, with both expected to keep rates unchanged for now.
Meanwhile, trading was thin in Asia due to holidays in China, Japan, South Korea, and Indonesia. The MSCI Asia-Pacific index was mostly flat after gaining 0.8 per cent last week. Japan’s Nikkei was closed for a holiday, though futures traded slightly lower at 36,490.
In the US, S&P 500 and Nasdaq futures were both slightly positive, as investors await the Federal Reserve's decision on Wednesday.
China’s economy showed signs of slowing over the weekend, with industrial output growth hitting a five-month low in August. Retail sales and new home prices also weakened, adding to concerns about the country's economic recovery.
There is now a 52 per cent chance the US Federal Reserve will cut interest rates by 50 basis points on Wednesday, with expectations of further cuts in 2025. Some experts, including JPMorgan economist Michael Feroli, believe the Fed could reduce rates by up to 100 basis points this year, and 150 basis points next year.
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This possibility of aggressive rate cuts has boosted the bond market, with US two-year Treasury yields falling to 3.593 per cent, the lowest since September 2022.
The Bank of England is expected to keep rates steady at 5.00 per cent when it meets on Thursday, although there is a 31 per cent chance of another cut. The Bank of Japan is set to meet on Friday and is expected to keep rates unchanged, though it could signal future tightening in October. South Africa's central bank is also expected to ease policy this week, while Norway is likely to hold rates steady.
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