Market Cues Today: India-US Trade Deal, Fed Rate Cut Expectation And Other Triggers Set To Impact Trade

Stock Market Cues Today: The headline indices finished the session lower on September 15 ending an eight session winning streak. The Nifty 50 closed at 25,069.20 down by 44.8 points or 0.18 per cent and the Sensex ended the session around the 81,785.74 level down by 118.96 points or 0.15 per cent.

On September 16, the headline indices are expected to open lower as the Gift Nifty opened lower at 25,160. At the time of writing, the Gift Nifty traded lower by 0.05 per cent at 25,155.

Stock Market Cues On September 16

On September 16, D-street is expected to react to multiple cues such as updates related to the India-US trade deal, buzz around the US Federal reserve announcing a rate cut and changes in commodity prices.

India-US Trade Deal

A new round of trade negotiations between India and the US are expected to begin on September 16. US Chief negotiator, Brendan Lynch, the assistant US trade representative is set to land in India to agree on a Bilateral Trade Agreement (BTA). India’s chief negotiator in the BTA discussions is Rajesh Agrawal. Earlier last week, Trump added that India and the US are "continuing negotiations to address the trade barriers" in a post on Truth Social.

"I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both our countries," Trump said.

US Federal Reserve Rate Cut

The US Federal Reserve is anticipated to reduce its benchmark rate at its upcoming federal reserve meeting. As per a CNBC report which quoted CME Fedwatch tool’s estimates, the market is pricing in a 96 per cent chance of a 25 basis point rate cut. Reduced US interest rates can potentially make Indian markets look more lucrative to foreign investors, this in turn can increase capital inflows. A rate-cut is also expected to affect the strength of the Indian rupee against the US Dollar.

Crude Oil Prices On September 16

Crude oil prices traded in the green on September 16 as West Texas Intermediate crude rates inched up by 0.22 per cent to $63.43. On the other hand the price of Brent Crude increased by 0.21 per cent to $67.58.

Gold Rate On September 16

Gold prices edged lower on September 16, the price of one gram of 24 karat gold was around Rs 11,105, the price of one gram of 22 karat purity gold remained around Rs 10,179. The rates for 18 karat purity gold were Rs 8,328 per gram on September 16.

FII, DII Trade

On September 15, foreign institutional investors turned sellers of Indian equities, FIIs net sold Indian equities worth Rs 1,268.59 crore and domestic institutional investors remained net buyers and purchased equities worth Rs 1,933.33 crore.

Asian Indices Trade Mixed On September 16

Key Asian indices traded lower in the early hours of September 16, Hang Seng slipped 0.12 per cent and the Shanghai Composite traded lower with declines of 0.33 per cent. At the time of writing the Nikkei 225 and the KOSPI edged higher with gains of 0.61 per cent and 1.21 per cent respectively.

US Market Indices

On September 15, US market indices finished the session with gains. The Dow Jones Industrial Average finished the session at 45,883.45 up by 49.23 points or 0.11 per cent. On the other hand the Nasdaq Composite and the S&P 500 finished in the green with gains of 0.94 per cent and 0.47 per cent.