Trade Setup for Thursday 23 March: Stock Market News

 

Trade setup for Thursday 23 March 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today

Asian stock markets are mostly trading lower on Thursday, following Wall Street’s reaction after the US Federal Reserves announcement of 25 bps rate hikes. The key Asian stock market indexes, Nikkei and Shanghai are trading lower by 0.50 percent and 0.09 percent respectively while Hang Seng is trading higher by 0.18 percent at 7.15 am IST

SGX Nifty is trading lower by 48 points or 0.28 percent at 17109 levels. The indication getting from the Asian markets is slightly negative. The Indian stock market indexes are likely to open in the red and will remain volatile today.

 

U.S. and European stock market indexes update

 

The US stock market indexes pared all intraday gains and closed sharply lower after the announcement of 25 bps of rate hikes by the Federal Reserves. The rate hike was in line with expectations, the sentiments become dampen after Fed Chair Jerome Powell signaled one more hike and dismiss any rate cuts this year. The long and short-term Treasury yields slipped after the announcement.

All rate-sensitive sectoral indices including banking and tech stocks lost momentum after the announcement. The major US stock market indexes, Dow Jones and S&P 500 fell 1.63 percent and 1.65 percent respectively while Nasdaq was down by 1.60 percent on Wednesday.

European stock markets closed marginally higher on Wednesday after UK inflation surprisingly accelerated and investors around the world awaited the US Fed’s latest interest rate decision. Markets were trading choppy in the morning deal, food and beverages sectors closed higher while banking and financial sectors ended in the red on Wednesday. 

The pan European Stocxx 600 ended higher by 0.2 percent on Wednesday. The key European stock market indexes, FTSE and CAC gained 0.40 percent and 0.26 percent respectively. While DAX was up by only 0.14 percent on Wednesday.

 

Indian stock market updates

 

Indian stock market indexes closed with minor gains on Wednesday amid volatility. The market sentiment was upbeat in the early morning due to positive cues from Wall Street, as investors’ fear about the banking crisis subsided. Traders booked profits at higher levels ahead of the US Fed’s interest rate decision. 

The market breadth was strong on Wednesday with the advance decline indicating a ratio of 2:1 at the close. FIIs and DIIs both were net buyers in the Indian equity markets, FIIs bought Rs 61.72 crore worth of shares while DIIs bought Rs 383.51 crore.

 

News you should read before the trade setup for today 23 March

 

According to the RBI data showed, the foreign direct investment (FDI) inflows dipped nearly 13% this fiscal till January, mirroring the negative sentiment in the global investment climate, while foreign institutional investors (FII) have sold equities worth $6.1 billion in the same period on a net basis. The foreign investment flow slows, but surging services exports may lead to a current account surplus in Q4

 

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Happy Investing!!

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