The Indian stock market is poised for a challenging start on Thursday, as the benchmark indices, Sensex and Nifty 50, are anticipated to open lower due to mixed signals from global markets. Asian stocks exhibited varied performances, while U.S. markets faced significant declines overnight. This downturn followed remarks from Federal Reserve Chair Jerome Powell, who expressed concerns over the long-term economic impact of President Donald Trump‘s tariffs.
Recent Market Performance
On Wednesday, the Indian markets showed resilience, closing higher for a third consecutive day. The Sensex gained 309.40 points (0.40%), concluding at 77,044.29, while the Nifty 50 increased by 108.65 points (0.47%), finishing at 23,437.20.
- Positive factors included:
- Updates on a favorable monsoon.
- Easing retail inflation rates.
- Stability in global markets without unforeseen negative developments.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that strong performances from banking and financial stocks, alongside renewed interest in major sectors, contributed significantly to this upward momentum.
Global Market Influences
Asian Market Overview
Asian indices displayed mixed trends, despite the poor performance of U.S. markets. Notable movements included:
- Japan’s Nikkei 225 rose by 0.59%.
- The Topix index increased 0.26%.
- South Korea’s Kospi added 0.41%, while the Kosdaq surged 1.02%.
- However, futures for Hong Kong’s Hang Seng indicated a weaker opening.
U.S. Market Insights
The U.S. stock market saw a sharp decline on Wednesday amid widespread selling, largely influenced by comments from Jerome Powell regarding a slowdown in economic growth. Here are some of the key losses:
- Dow Jones Industrial Average fell 699.57 points (1.73%) to 39,669.39.
- S&P 500 decreased by 120.93 points (2.24%) to 5,275.70.
- The Nasdaq Composite plunged 516.01 points (3.07%) to 16,307.16.
Major companies like Nvidia, AMD, and Tesla saw significant drops, with Nvidia down 6.9% and Tesla 4.94% lower.
Economic Context
In his recent statement, Powell emphasized that the Federal Reserve would wait for additional economic data before adjusting interest rates. He also warned that tariff policies could hinder progress toward the Fed’s inflation and employment objectives.
Corporate Highlights
Wipro’s Q4 Performance
Wipro reported a 6.4% quarter-on-quarter increase in net profit, reaching ₹3,569.6 crore for the quarter ending March 2025. Key highlights include:
- IT services revenue rose by 0.7% QoQ to ₹22,445.3 crore.
- However, revenue in dollar terms declined by 1.2% QoQ to $2.60 billion.
- The EBIT margin remained stable at 17.5%.
Looking ahead, Wipro forecasted IT services revenue for Q1 FY26 between $2,505 million and $2,557 million, indicating a potential decline in constant currency terms.
Additional Economic Indicators
U.S. Manufacturing & Retail Sales
Recent data shows that U.S. manufacturing output rose by 0.3% in March, following a 1.0% increase in February. Retail sales also demonstrated strength, increasing by 1.4% in March after a modest rise in February.
Gold Prices & Currency Trends
Gold prices continued their ascent amid escalating global trade tensions, reaching a high of $3,357.40 per ounce. The U.S. dollar is on track for its fourth consecutive weekly loss, despite a slight recovery against the yen, sitting at 99.5 on the index.
As the trading day unfolds, investors will closely monitor these developments for insights into potential market movements. Stay tuned for updates on how these factors influence the Indian stock market today.
