Stock Markets: The outlook for domestic equity indices on Thursday is optimistic, propelled by encouraging signals from global markets. Asian markets showed strength, with the Nikkei reaching unprecedented highs, paralleled by the US stock indices’ record-setting performance following the US Federal Reserve’s monetary policy deliberation.

Led by Fed Chair Jerome Powell, the Federal Open Market Committee maintained the Federal Funds rate within the range of 5.25% to 5.5% and upheld its projection for three rate cuts this year. Powell emphasized that despite recent inflation figures surpassing expectations, the broader narrative remains one of gradual inflation decline amidst some fluctuations.

In Wednesday’s trading session, Indian stock market indices closed with marginal gains amid volatility, supported by positive sentiment in global markets. The Sensex rose by 89.64 points, or 0.12%, to conclude at 72,101.69, while the Nifty 50 edged up by 21.65 points, or 0.1%, to settle at 21,839.10.

Vinod Nair, Head of Research at Geojit Financial Services, attributed the market’s rebound to favorable global sentiment and robust direct tax collections. He noted that strong inflows from Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) sustained the market, with mid and small-cap stocks expected to trail large caps due to premium valuations in the short term.

Here are the pivotal global market indicators shaping the direction for the Sensex today:

Asian Markets: Asian markets surged, mirroring an overnight rally on Wall Street following the US Federal Reserve’s monetary policy announcement. Notably, Japan’s Nikkei 225 soared by 1.57%, reaching a historic high, while the Topix also achieved a new record, gaining 1.41%. South Korea’s Kospi and Kosdaq both experienced significant increases, with the Hang Seng index futures in Hong Kong signaling a positive opening.

Gift Nifty Today: The Gift Nifty was observed trading around the 22,078 level, indicating a premium of nearly 170 points from the previous close of Nifty futures. This suggests a promising gap-up start for the Indian stock market indices.

US Stocks: US stock market indices achieved unprecedented closing highs on Wednesday, following the Federal Reserve’s decision to maintain interest rates unchanged. The Dow Jones Industrial Average surged by 401.37 points, the S&P 500 rallied by 46.11 points, and the Nasdaq Composite climbed by 202.62 points. Several stocks saw notable gains, including Amazon, Tesla, and Chipotle Mexican Grill, while Equinix shares experienced a decline.

US Federal Reserve: The US Federal Reserve opted to retain the benchmark federal funds rate within a range of 5.25% to 5.5%, consistent with market expectations. Additionally, the Fed signaled the possibility of three rate cuts in 2024, despite persistent inflation concerns.

Japan Trade Data: Japan’s exports exceeded expectations, rising by 7.8% in February compared to the same period last year, outpacing economists’ forecasts. However, imports saw a more modest increase of 0.5%, resulting in a trade deficit of 379.4 billion yen, below the anticipated figure.

Dollar: The US dollar witnessed broad-based weakness following the Federal Reserve’s decision to maintain its interest rate cut projections for the year. The dollar index remained flat at 103.23, after a decline of more than 0.5% in the previous trading session.

Gold Price Today: Gold prices surged to a record high in response to the US Fed’s decision, with spot gold reaching $2,196.69 per ounce and US gold futures rallying to $2,198.90 per ounce.

Oil Prices: Crude oil prices saw an uptick after a decrease in US stockpiles, with Brent oil rising to $86.42 a barrel and West Texas Intermediate hovering around $82 per barrel.