Indian Stock Market Set for Positive Start Amid Global Rally and Key Fed Decision

Sensex and Nifty likely to open higher; US tech stocks rebound; Asian markets gain amidst cautious optimism.

January 29, 2025: The Indian stock market is poised for a positive opening on Wednesday, tracking gains in global equities and overnight recovery in US technology stocks. Gift Nifty, trading around the 23,028 level, indicated a premium of nearly 50 points from the Nifty futures’ previous close, pointing to a strong start for Sensex and Nifty 50.

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Global Market Overview:

Asian markets showed signs of optimism with Japan’s Nikkei 225 gaining 0.62% and the Topix up 0.39%. However, several regional markets remained closed for the Lunar New Year holiday. Meanwhile, the US stock market closed higher on Tuesday, buoyed by a rebound in tech shares.

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The Dow Jones Industrial Average rose 0.31%, closing at 44,850.35, while the S&P 500 rallied 0.92% to settle at 6,067.70. The Nasdaq Composite witnessed significant gains, jumping 2.03% to 19,733.59. Key tech players such as Nvidia (+8.9%), Apple (+3.7%), and Microsoft (+2.9%) led the charge, with Royal Caribbean also surging 12%.

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Federal Reserve Focus:

The Federal Open Market Committee (FOMC) has commenced its first monetary policy meeting of 2025, with the decision expected later today. The Federal Reserve is widely anticipated to maintain interest rates at current levels, aligning with market expectations.

Domestic Market Recap:

On Tuesday, Indian markets broke a two-day losing streak, with the Sensex gaining 535.24 points (0.71%) to close at 75,901.41 and the Nifty 50 advancing 128.10 points (0.56%) to 22,957.25. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noted, “While the relief rally brought optimism, underlying concerns about global uncertainty and weak domestic indicators persisted. However, sectors like banking, auto, and realty offered support.”

Key Economic Indicators:

• US Consumer Confidence: Declined for a second consecutive month in January, with the Conference Board’s index falling to 104.1, down from 109.5 in December.
• US Manufacturing Data: Non-defense capital goods orders excluding aircraft increased by 0.5% in December, exceeding expectations.

Currency Market Update:

The US dollar strengthened against the Japanese yen, rising 0.6% to 155.52, buoyed by fresh tariff threats from the Trump administration. The euro and sterling weakened, trading at $1.0433 and $1.24, respectively.

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Indian stock market, Sensex, Nifty 50, Gift Nifty, Asian markets, US stock market, Federal Reserve, FOMC meeting, Nvidia stock, global equities, Indian equities, stock market rally, US dollar, US consumer confidence, technology stocks