India Market Recap

Indian equity benchmarks snapped a two-day losing streak on Wednesday, with the Nifty 50 gaining over 0.4% and closing in the green. HDFC Life and SBI Life led the Nifty gainers, rising more than 2.5% each. The broader market remained relatively subdued, although the Nifty Midcap 150 snapped a four-session losing streak and ended around 0.1% higher. Patanjali Foods was the top gainer in the index, rising nearly 7.5%. On the technical front, Nifty support is placed at 23,000–22,900, while resistance is seen at 23,300–23,400.

US Market Recap

US equities declined sharply as investors increased bets that the Federal Reserve could continue raising interest rates to contain persistent inflation. The major indices erased their early gains, with the Dow Jones Industrial Average falling 1.2%, while the S&P 500 closed at its lowest level since July. Short-term Treasury yields rose, with the two-year yield reaching its highest level since 2024, while the dollar strengthened. The Federal Reserve raised its policy rate by 25 basis points to 3.75–4.00%, marking its first hike since 2023, and signalled the possibility of another increase before year-end. Markets are now pricing in around a 50% chance of a rate hike in October.

Asian Market Update:

Asian equities traded slightly higher on Thursday, although short-term government bonds came under pressure following the Federal Reserve’s rate hike and signal for further tightening. Asian stocks gained around 0.1%, led by Japan and South Korea, while US equity futures also advanced in early Asian trading. Japan’s Topix rose 0.8%, whereas Hang Seng futures declined 1.2%. Investors remained focused on the outlook for global interest rates and inflation.

Commodity Check

Gold prices steadied after declining following the Federal Reserve’s rate hike and its signal that another increase could come before year-end. Bullion traded near $4,270 an ounce after falling around 2% over the previous three sessions. Spot gold gained 0.2% to $4,273.82 an ounce, while silver rose 0.5% to $63.28. Platinum and palladium also edged higher. Crude oil prices fell for a second consecutive session as signs of easing supply disruptions in the Middle East weighed on the market. Brent crude slipped below $105 a barrel after declining 2.7% on Wednesday, while WTI traded near $101. Saudi Arabia is working to restore around half the capacity of its damaged East-West pipeline within days, with full operations expected to resume in about six weeks.

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