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The GIFT Nifty trends suggest a positive opening for the broader index in India

The benchmark Sensex and Nifty indices are expected to open positively on May 16, following GIFT Nifty trends indicating a gain of 123 points for the broader index.

On May 15, Indian markets closed marginally lower, with Sensex dropping 118 points while Nifty held the 22,200 mark. Meanwhile, broader markets BSE MidCap and Smallcap gained 0.6 percent and 1 percent higher.

Among sectoral indices, Nifty PSU Bank Index led gainers, up 1.4 percent, followed by Nifty Realty and oil & gas, both up 1 percent. Nifty FMCG Index was the top loser, down 1 percent, along with Nifty Auto which was down 0.5 percent. Nifty Bank and Nifty Private Bank indices slipped 0.3 percent each.

The GIFT Nifty trends suggest a positive opening for the broader index in India, with a 0.55 percent gain or 123 points. Nifty futures are trading around the 22,383 level.

Asian stocks rose following gains on Wall Street fueled by strong US inflation data, bolstering expectations of Federal Reserve rate cuts. Australian, Japanese, and South Korean shares climbed, with futures for the S&P 500 and Nasdaq 100 also up. Hong Kong shares will resume trading after a holiday. Australian and New Zealand government bonds surged, while US Treasuries remained steady after yields fell across the curve. The US 10-year rate dropped 10 basis points, and the two-year yield fell nine basis points as investors adjusted rate cut expectations, with the swaps market now pricing in two cuts this year instead of one.

Wall Street hit record highs as bond yields dropped on news of slower inflation, boosting expectations for Fed rate cuts by September. The S&P 500 marked its 23rd record of 2024 after consumer prices cooled for the first time in six months. The VIX fear index plunged to January lows, while Treasury yields rose. Fed swaps now indicate a quicker pace of policy easing. The inflation report suggests a downward trend, potentially paving the way for rate cuts. Retail sales data hinted at a slight softening in consumer demand supporting the economy.

Gold extended gains for a third day as the US inflation slowdown hinted at a potential rate cut in September. Near four-week highs, bullion rose 0.3 percent to $2,393.91 an ounce in Singapore, reaching $2,394.25, the highest since April 19. Silver, platinum, and palladium also saw increases.

Asian currencies were trading higher against the US dollar. South Korean won was up 0.71 percent, Japanese yen 0.68 percent, Malaysian ringgit 0.5 percent, Indonesian rupiah 0.44 percent, Philippines peso 0.37 percent, Thai Baht 0.23 percent, Taiwan dollar 0.21 percent, China renminbi 0.2 percent, Singapore dollar 0.18 percent.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 104.087, down 0.25 percent from its previous close of 104.34.

Brent crude futures were up 42 cents, or 0.5 percent, at $83.17 a barrel. U.S. West Texas Intermediate crude futures (WTI) rose 42 cents, or 0.53 percent, to $79.05 a barrel.

LME commodity prices were up across the board: LME Aluminum rose 1.86 percent, LME Nickel gained 2.2 percent, and LME Copper increased by 1 percent. LME Lead and Tin edged up 0.3 percent each, while LME Zinc saw a 1 percent decline.

FIIs sold shares worth Rs 2,832.83 crore. DIIs pumped in Rs 3,788.38 crore worth of stocks on May 15

Mahindra and Mahindra, GAIL (India), Vodafone Idea, Biocon, CONCOR, Crompton Greaves Consumer Electricals, Hindustan Aeronautics, KIMS, Info Edge