Top factors that will influence the Indian stock markets on Thursday

The US Federal Reserve on Wednesday indicated that the COVID-19 pandemic was no longer a major constraint for the US economy.

The Indian Nifty at the Singapore stock exchange (SGX Nifty) opened negative by 97 points on Thursday morning indicating that the stock indices in India will start in red as well. On Wednesday, Sensex had closed at 52,501.98 after facing a drop of 271.07 points while the NSE’s Nifty had dropped down 101.80 points to reach 15767.50 points. The Nifty formed a bearish candle on the charts.

Here are the top factors from India and the world that will affect the direction the Indian stock markets take today-

US Fed announcements:

The US Federal Reserve on Wednesday indicated that the COVID-19 pandemic was no longer a major constraint for the US economy. It also projected an earlier schedule for increasing the interest rates(from the year 2023) and began talks on ways to end the bond-buying process. The Fed chairman Jerome Powell continued to maintain benchmark interest rates close to 0%.

Global markets:

The US investors were alarmed by Fed’s projection to prepone the increase in interest rates from 2024 to 2023. On Thursday, Asian markets were keen to observe the impact of the Fed’s announcements. In Japan, Nikkei 225 dropped down by 1.11% and Topix fell by 0.62%

FII & DII activity:

On Wednesday, foreign institutional investors net sold shares valued at Rs.870.29 crores. On the other hand, their domestic counterparts net sold shares valued at Rs 874.20 crore.

New SEBI guidelines:

On Wednesday, market regulator SEBI decided to bring the dealings in debt securities made by directors and promoters of listed companies under the ambit of system-driven disclosures. The regulator also announced new guidelines regulating the running account of client funds.

UK inflation:

The CPI inflation in May reached 2.1% in the UK, above the 2.0% target set by the Bank of England. It was 1.7% for the month of April.

Quarterly results:

On Thursday, several listed companies will be revealing their results for the quarter ending in March 2021. The major ones include- Power Grid Corporation, Jammu & Kashmir Bank, IFB Agro Industries, Natco Pharma and Novartis India.

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