Indian stock markets are poised for an optimistic opening today, buoyed by favorable signals from Gift Nifty. This positivity comes in the wake of a solid performance on March 19, when the Nifty Index surged past the 22,900 threshold, finishing 0.32% higher at 22,907.60. Meanwhile, the Sensex incrementally rose by 0.20%, concluding the session at 75,449.05.
Key Indicators for March 20, 2025
Federal Reserve’s Decision
In its latest meeting on March 19, the U.S. Federal Reserve opted to maintain interest rates between 4.25% and 4.50%. This decision marks the first major move by the Fed since Donald Trump resumed the presidency in January. Concurrently, Trump has enacted a 25% tariff on steel and aluminum imports, which took effect last week, with more tariffs expected to roll out on April 2.
U.S. Market Performance
Wall Street concluded the day on a high note, with all three major stock indices recording gains. The S&P 500 rebounded from recent downturns, climbing 1.08% to reach 5,675.29. The Dow Jones Industrial Average increased by 0.92%, finishing at 41,964.63, while the Nasdaq Composite led the upward trend with an impressive 1.41% rise, closing at 17,750.79.
China’s Financial Strategy
Following the U.S. Federal Reserve’s lead, the People’s Bank of China has opted to keep its benchmark lending rates steady. The 1-year loan prime rate remains at 3.1%, and the 5-year LPR is unchanged at 3.6%, maintaining these levels since a 0.25% cut in October. This approach aims to balance economic growth with currency stability.
Positive Trends in Asian Markets
Asian stock markets have opened positively, inspired by Wall Street’s robust performance. The Australian S&P/ASX 200 climbed 0.77%, while South Korea’s Kospi and Kosdaq saw increases of 0.64% and 0.55%, respectively. This upbeat atmosphere is largely attributed to the Fed’s decision to keep rates stable.
Gold Prices Surge
Gold prices have reached a new all-time high as economic policymakers signal a slowdown in growth alongside rising inflation, while keeping interest rates unchanged for the second consecutive meeting. As of March 20, 24-carat gold is trading at Rs 90,045 for 10 grams, with 22-carat gold priced at Rs 82,910. For those interested in 18-carat gold, the current rate stands at Rs 67,840 per 10 grams.
U.S. Dollar Trends
The U.S. Dollar Index (DXY), which gauges the dollar’s value against a selection of six major currencies, was recorded at 103.41 on Thursday. This index reflects the dollar’s strength relative to currencies such as the British Pound, Euro, Japanese Yen, and others. The Indian Rupee settled at 86.43 against the U.S. dollar on March 19.
FII and DII Movements
On March 19, foreign institutional investors (FIIs) shifted to a selling stance, offloading shares worth Rs 1,096.50 crore after a brief buying phase the previous session. In contrast, domestic institutional investors (DIIs) remained active buyers, acquiring stocks valued at Rs 2,140.76 crore, according to preliminary data.
Crude Oil Prices
Crude oil prices saw a slight uptick on Thursday morning, with WTI crude increasing by 0.4% to $67.19 per barrel. Similarly, Brent crude experienced a 0.42% rise, reaching $71.03 per barrel.
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