Markets are kicking off Wednesday with encouraging signals from global peers. After four consecutive sessions of losses, Wall Street bounced back sharply, and Asian indices are mirroring this strength. Meanwhile, GIFT Nifty is trading flat, indicating a cautious start.
Market Recap: Volatility Rules Nifty 50
Tuesday saw heightened volatility in the Indian markets. The Nifty 50 index surged to a high of 24,973, only to fall over 300 points during the session. Eventually, it closed 175 points lower at 24,826, dipping below the crucial 24,900 level. Interestingly, despite the broader market trend, the Nifty Midcap 100 and Smallcap 100 indices ended in the green, up 0.15% and 0.10%, respectively.
The recent rally in IT, FMCG, and Auto sectors lost steam, while defense stocks extended gains for the fifth straight session. Garden Reach Shipbuilders & Engineers was a standout performer, rallying over 3%.
What to Watch Today
Earnings on Radar: Results from IRCTC, Bata India, MTNL, and others will be in focus.
Monsoon Boost: The Indian Meteorological Department has revised its forecast, suggesting better-than-expected rainfall this season — a potential positive trigger for agriculture and rural demand-linked stocks.
Global Eyes on Fed: All eyes are on the FOMC meeting minutes due today, which could offer insight into the US Fed’s stance on inflation and interest rates. According to Motilal Oswal's Siddharth Khemka, short-term market volatility is likely.
Global Market Cues
Wall Street turned bullish after days of pressure:
Dow Jones soared over 700 points
S&P 500 and Nasdaq surged more than 2%
Optimism stemmed from eased tensions with the EU, improved consumer confidence, and cooling bond yields
In Asia:
Nikkei 225 (Japan) jumped over 1%
Kospi (South Korea) and Taiwan Index rose 1.5%
Hang Seng (Hong Kong) and Shanghai Composite (China) also trading strong
US Consumer Confidence Rebounds
May saw a sharp recovery in the US Consumer Confidence Index, which jumped by 12.3 points to 98 — its biggest monthly rise in four years. Consumers now appear more willing to spend on big-ticket items like homes, cars, and vacations. Inflation fears have also eased, reaching their lowest level since 2022.
Key Market Indicators
Dollar Index: Rebounding, near the 100 mark
Crude Oil: Holding below $65/barrel
Trump-Putin Tensions: Trump warns Putin is "playing with fire"
OPEC+ Meeting: Scheduled for May 31, could impact oil prices
NVIDIA Earnings and Fed Minutes: Critical events to watch today
Institutional Activity
FIIs (Foreign Institutional Investors): Net buyers in the cash segment
DIIs (Domestic Institutional Investors): Continued robust buying
Conclusion: Stay Alert, Stay Selective
With mixed domestic cues and crucial global data ahead, market sentiment may stay volatile in the near term. Investors should keep an eye on monsoon updates, Fed commentary, and earnings releases while aligning their positions accordingly.
.jpg)