As the trading day kicks off, early indicators suggest a positive trajectory for the markets, with the Gift Nifty showing promising signs. Investors are closely monitoring global influences, including trends from Wall Street and critical economic reports that could shape the market’s mood. On March 17, Indian stock exchanges experienced a robust close, with the Sensex climbing 0.46% to reach 74,169.95, while the Nifty appreciated by 0.50%, finishing at 22,508.75.
Asian Markets Shine Bright
Asian stock markets opened on a high note this Tuesday, buoyed by the overnight gains seen on Wall Street. The positive sentiment was fueled by reassuring US retail sales data, which alleviated concerns about a potential economic downturn.
- Japan’s Nikkei 225 surged 1.34%.
- The broader Topix index witnessed a 1.26% increase.
- In South Korea, the Kospi index rose by 0.76%, while the Kosdaq saw a modest gain of 0.38%.
- Meanwhile, Australia’s S&P/ASX 200 climbed 0.63% higher.
Record Gold Prices
In a notable development, gold prices surged to a new peak on March 17, rising by Rs 1,300, driven by robust global market trends. Heightened concerns regarding US tariffs and trade conflicts, along with expectations of a forthcoming Federal Reserve rate cut, propelled the price of 99.9% pure gold to an unprecedented Rs 90,750 for every 10 grams—up from Rs 89,450 on the previous day, according to the All India Sarafa Association.
As of March 18, gold prices in India stand as follows:
- 24 carat gold: Rs 89,550 per 10 grams
- 22 carat gold: Rs 82,090 per 10 grams
- 18 carat gold: Rs 67,170 per 10 grams
Wall Street’s Second Consecutive Day of Gains
On Monday, Wall Street marked its second consecutive day of gains, with the Dow Jones soaring by over 350 points, pushing its two-day rally beyond 1,000 points. The S&P 500 increased by 0.6%, while the Nasdaq, after struggling in the red for most of the day, managed to finish 0.3% higher.
The Federal Reserve’s Critical Meeting
Kicking off today, the US Federal Reserve will hold a two-day meeting to evaluate interest rates. Analysts anticipate that rates will remain stable at 4.25%-4.50%, following a series of cuts that began in September 2024. Fed Chair Jerome Powell has warned that escalating tariffs may complicate inflation management. A decisive announcement is expected on March 19.
Insights on US Retail Sales
US retail sales experienced growth in February, albeit falling short of expectations. However, a key metric known as control-group sales, which reflects consumer spending on goods, rebounded by 1%, recovering from a prior decrease.
Understanding the US Dollar
The US Dollar Index (DXY), which assesses the dollar’s strength against a basket of six major currencies, was recorded at 103.48 on Tuesday morning. This index evaluates the dollar’s performance relative to currencies such as the British Pound, Euro, Japanese Yen, and Swiss Franc. As of March 17, the Indian rupee settled at 86.80 against the dollar, reflecting a decline of 24 paise from the previous close.
FII and DII Activity
On March 17, foreign institutional investors (FIIs/FPIs) continued their selling trend, offloading shares valued at Rs 4,488 crore, as per provisional data. Conversely, domestic institutional investors (DIIs) stepped in as net buyers, acquiring shares worth Rs 6,000 crore.
Crude Oil Prices Take a Dip
On Tuesday, crude oil prices experienced a slight decline, with WTI crude slipping 0.13% to $67.48 per barrel, while Brent crude fell 0.02% to $71.05 during early trading.
In summary, the markets are set for an engaging day ahead as global trends and domestic developments play a pivotal role in shaping investor sentiment.
