Market Cues Today: India EU Trade Talks, US Federal Reserve Policy And Other Factors Set To Impact Trade

Stock Market Cues: On October 16, the Gift Nifty opened with gains at 25,441.5. The index gained 0.12 per cent to trade at 25,467.5 levels indicating a positive start for the headline indices.

The Sensex and the Nifty broke a two-day losing spree on October 15. The BSE Sensex closed at 82,605.43 up by 0.7 per cent and the Nifty 50 finished at 25,323.55 up by 0.71 per cent.

Stock Market Cues For Today

On October 16, fresh developments on the India-European Union trade deal front, speculations regarding a change in the US Federal Reserve’s policy stance and other factors are set to impact trade activity on D-street.

India, EU Trade Deal Negotiations

India-EU trade negotiations are progressing as per a report by news agency PTI. The report cited a senior government official who stated that the negotiations have reached the last leg. The report also cited Commerce Secretary Rajesh Agrawal who said that some Indian officials have stayed back to conclude talks on Rules of Origin (ROO). As trade-talks between India and EU continue, officials from the EU are expected to visit New Delhi in November. D-street is expected to factor in any fresh developments on the India-EU trade deal positively.

US Fed Rate Cut Speculation

Federal Reserve Chair Jerome Powell addressed the National Association of Business Economics in Philadelphia. The US Fed chair said that while the government shutdown has limited access to economic data, the outlook for employment and inflation does not appear to have changed much since September. According to a report by PBS the Fed officials have also stated that the central bank is likely to reduce its rate twice more this year and once in 2026.

FII Inflows

On October 15, Foreign Institutional Investors turned net buyers of Indian equities making a net purchase of Rs 68.64 crore. On the other hand, domestic institutional investors extended a buying spree by making a net purchase of Rs 4,650.08 crore. So far in October, DIIs have bought equities worth Rs 22,441.64 crore and FIIs have net sold equities worth Rs 1,893.03 crore.

Crude Oil Prices On October 16

Crude oil prices edged higher on October 16, the price of West Texas Intermediate jumped $0.45 or 0.77 per cent to $58.72 and the price of Brent Crude jumped $0.47 or 0.76 per cent to $62.38.

Gold Rate On October 16

Physical gold prices traded in the green in the morning hours of October 16, the price of 24 karat gold remained around Rs 12,945 per gram. On the other hand the price of 22 karat gold and 18 karat gold remained around Rs 11,866 per gram and Rs 9,709 per gram.

Asian Indices Trade In Green On October 16

In the morning hours of October 16, Asian indices traded mixed as the Hang Seng slipped 93.6 points to trade at 25,817 levels. On the other hand other Asian indices such as the Nikkei 225, KOSPI and Shanghai Composite traded with early gains of 0.86 per cent, 1.89 per cent and 0.24 per cent respectively.

US Market Indices

Key Wall Street indices closed mixed on October 15. The Nasdaq Composite and S&P 500 finished higher by 0.66 per cent and 0.4 per cent respectively. On the other hand the Dow Jones Industrial Average closed lower by 0.04 per cent.