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Indian stock market: 6 key things that changed for market overnight

The Indian stock market is poised for a cautious start on Tuesday, influenced by a downtrend in global markets. Declines were observed in Asian markets, and US stock indices closed lower in anticipation of upcoming significant economic announcements.

Investors are on edge as they await Federal Reserve Chair Jerome Powell’s congressional testimony, a policy decision from the European Central Bank, and a pivotal jobs report from the US Department of Labor for February.

In other developments, China commenced its “Two Sessions” meeting, announcing a GDP growth goal of approximately 5% for 2024 and projecting an inflation rate rise to about 3%.

On Monday, Indian equity markets continued their upward trajectory for the fourth straight session, reaching new closing highs. The Sensex rose by 66. 14 points, or 0. 09%, to end at 73, 872. 29, while the Nifty 50 increased by 27. 20 points, or 0. 12%, closing at 22, 405. 60.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., expects the market’s positive momentum to carry on, with the Nifty potentially approaching the 22,500 zone. However, caution is advised in mid and small-cap selections due to potential profit-taking and an unfavorable advance-decline ratio.

Global market influences to watch include:

  • Asian Markets: Witnessed declines as China’s “Two Sessions” convened. Japan’s Nikkei 225 and South Korea’s Kospi saw decreases, with Hong Kong’s Hang Seng index indicating a lower start.

  • Wall Street: US indices retreated from their highs, with the Dow Jones, S&P 500, and Nasdaq all closing in the red, partly due to rising US Treasury yields.

  • China’s GDP Growth: Set at around 5% for the year, matching one of its lowest targets in decades, according to Bloomberg News.

  • US Treasury Yields: Increased ahead of crucial economic updates and Powell’s testimony.

  • Oil Prices: Brent crude and West Texas Intermediate crude experienced slight declines amid concerns over China’s economic strength.

Investors are advised to keep a close eye on Jerome Powell’s testimony and the forthcoming jobs report for insights into the Federal Reserve’s interest rate policies.