Indian Stock Market Awaits Muted Start Amid Global Market Uncertainty

US Fed decision, corporate earnings, and cautious global sentiment weigh on market expectations.

January 30, 2025: The Indian stock market is expected to open on a muted note on Thursday, as indicated by Gift Nifty trading near the 23,150 level. The global market sentiment has been impacted by the US Federal Reserve’s decision to keep interest rates unchanged and mixed quarterly earnings from major companies like Microsoft, Tesla, and Meta.

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Key Market Highlights:

Domestic Market Performance:

The domestic market closed positively for the second consecutive session on Wednesday, supported by robust buying in IT and banking stocks. The Sensex gained 631.55 points, closing at 76,532.96, while the Nifty 50 rose 205.85 points to settle at 23,163.10. Analysts attributed the rally to optimism ahead of the F&O expiry, though concerns remain over continued FII selling and the upcoming Budget announcement.

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Global Cues:

• Asian Markets: Markets in Asia traded mixed on Thursday. Japan’s Nikkei 225 and Topix saw slight declines of 0.17% and 0.21%, respectively. Australia’s S&P/ASX 200 climbed 0.37%. Meanwhile, China, Taiwan, South Korea, and Hong Kong markets remained closed for the Lunar New Year holiday.
• Wall Street: US markets ended lower, with the Dow Jones shedding 140.04 points (0.31%), the S&P 500 losing 29.03 points (0.48%), and the Nasdaq Composite dropping 106.08 points (0.54%). Nvidia, MSCI, and Microsoft stocks fell, while Meta and Tesla posted gains in extended trading.
• Gold Prices: Gold hovered near $2,760 per ounce, holding losses after Fed Chair Jerome Powell indicated no immediate rate cuts.

Corporate Earnings Impact:

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• Microsoft: Shares declined nearly 5% as the company reported underwhelming growth forecasts for its Azure cloud computing business, despite beating overall earnings expectations.
• Meta Platforms: Meta exceeded Q4 revenue expectations but warned of potentially lower-than-anticipated Q1 sales. Shares rose 2.29% in after-hours trading.
• Tesla: Tesla reported lower-than-expected Q4 profits but projected improved vehicle sales for 2025. Shares rallied 4.16% in extended trade.

US Fed Policy:

The Federal Reserve kept interest rates steady at 4.25%–4.50%. Fed Chair Jerome Powell emphasized the importance of pausing rate cuts to assess inflation progress, reflecting a cautious outlook for economic growth.

Outlook:

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “While the market witnessed a relief rally, the undertone remains cautious due to FII outflows and pre-Budget jitters. Investors should monitor global cues and sectoral movements closely.”

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Tags:

• Indian Stock Market
• Global Market Cues
• US Federal Reserve Policy
• Microsoft Earnings Impact
• Tesla and Meta Results
• Sensex and Nifty Updates
• Gold Price Trends