IGI Logo

The market is expected to open in green after clocking new heights in Friday's session. Asian stocks firmed on Monday ahead of central bank meetings that are widely expected to deliver two more rate cuts and key US inflation figures that should flash a green light for more easing there. Wall Street closed flat on Friday, hovering near the previous session's record-high close for the Dow and S&P 500, while the dollar firmed as investors digested the Federal Reserve's 50-basis-point cut midweek that started a rate-reducing cycle. Oil prices rose slightly in early trading on Monday, driven by worries that conflict in the Middle East could affect supply in this crucial production area, along with expectations that last week's U.S. interest rate cut will bolster demand.

As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) bought shares worth net Rs.14064.05 crore and Domestic institutional investors sold shares worth net Rs.4427.08 crore on 20th September 2024.

Dow Jones Futures were up 69 points, indicating a strong opening in the US stock market today.

Asian markets traded higher on Monday, buoyed by continued optimism surrounding recent interest rate cuts. The People's Bank of China (PBOC) loosened monetary conditions by reducing its 14-day reverse repo rate. While this move provided a positive impetus, gains were tempered by the PBOC's recent decision to maintain its benchmark loan prime rate.

Regional trading activity was subdued due to a market holiday in Japan. However, Asian markets were building on strong gains from the previous week, following the Federal Reserve's interest rate cut and the initiation of an easing cycle. Investors were eagerly awaiting key economic indicators and statements from U.S. officials for further insights into the Fed's monetary policy path.

On Wall Street, the Dow Jones Industrial Average closed at a new record high on Friday, despite a mixed performance overall. The 30-stock Dow inched up 0.09%, for a new closing high of 42,063.36. The S&P 500 pulled back 0.19%, and the Nasdaq Composite dropped 0.36%. Investors weighed potential risks to economic growth and priced in more aggressive rate cuts than indicated by the Fed's "dot plot" projections.

Above views are of the author and not of the website kindly read disclaimer