Indian markets could open flat, in line with mixed Asian markets today and despite higher US markets on Sept 30
U.S. stocks closed higher on Monday, reclaiming earlier losses that came after Federal Reserve Chair Jerome Powell’s comments at a conference Monday, which were viewed as disappointing to investors looking for aggressive interest-rate cuts from the central bank’s final two meetings this year. Federal Reserve Chair Jerome Powell said in a speech that if the economy performs as expected, the central bank is likely to deliver two more quarter-percentage-point interest-rate cuts by the end of the year.
The Union government’s fiscal deficit expanded to 27% of the budgetary target at the end of the first five months for the financial year ending March 2025. The gap between expenditure and revenue during April-August stood at Rs 4.35 lakh crore of the total limit set at Rs 16.85 lakh crore for the ongoing fiscal, according to provisional data released on Friday by the Controller General of Account.
Asia-Pacific markets are mixed on Tuesday, after Federal Reserve Chair Jerome Powell indicated the recent outsized cuts enacted by the U.S. central bank should not be interpreted as a sign that future moves will be as aggressive. Japanese stocks gained Tuesday after the yen’s retreat boosted technology companies and automakers. China’s financial markets are closed for the rest of the week and Hongkong markets are closed Tuesday.
Nifty 50 had its worst day in nearly two months on Sept 30 fuelled by weak Asian markets (led by Japan), rising tensions in the Middle east and fear of funds moving to China based on recent measures taken by its Govt. At close, Nifty was down 1.41% or 368.1 points at 25810.9. Nifty fell on Sept 30 with a downgap and formed a long bearish candle. It showed no signs of significant intra day recovery. Nifty has shown signs of trend reversal and could fall some more in the near term. Nifty could face resistance from the 25956-26011 band while 25446 could offer support in the near term.
