Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note Thursday, following weakness in global markets after the US Federal Reserve monetary policy.

Asian markets dipped, while the US stock market ended lower overnight as investors reacted to the US Fed’s interest rate decision and quarterly earnings from Microsoft, Tesla and Meta.

The US Federal Reserve kept the benchmark interest rates unchanged in line with Wall Street estimates.

On Wednesday, the Indian stock market closed higher for the second consecutive trading session, driven by strong buying in IT and banking stocks.

The Sensex rallied 631.55 points, or 0.83%, to close at 76,532.96, while the Nifty 50 settled 205.85 points, or 0.9%, higher at 23,163.10.

“Positive US markets and gains in European indices aided domestic market sentiment, as the relief rally continued for a second straight session ahead of Thursday’s monthly F&O expiry. Since the market was in an oversold position, there was some breather expected in the form of renewed optimism, which was seen in mid & small-cap stocks that rallied sharply after the recent sell-off. However, with the Budget to be announced in the next few days and FII selling remaining unabated, undertone will continue to remain cautious,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Thursday following overnight losses on Wall Street after US Fed policy.

Japan’s Nikkei 225 fell 0.17% and the Topix dropped 0.21%. Australian markets climbed with the S&P/ASX 200 rising 0.37%. Markets in China, Taiwan, South Korea and Hong Kong are closed for the Lunar New Year holiday.

Gift Nifty Today

Gift Nifty was trading around 23,150 level, a premium of nearly 2 points from the Nifty futures’ previous close, indicating a muted start for the Indian stock market indices.

Wall Street

US stock market ended lower on Wednesday after the US Fed kept interest rates unchanged as expected and Fed Chair Jerome Powell offered soothing comments on the economy.

The Dow Jones Industrial Average fell 140.04 points, or 0.31%, to 44,710.31, while the S&P 500 declined 29.03 points, or 0.48%, to end at 6,038.67. The Nasdaq Composite closed 106.08 points, or 0.54%, lower at 19,627.51.

Nvidia share price dropped 4.03%, Msci Inc shares declined 5.62%, Advanced Micro Devices shares gained 2.8%. In the after market hours, Microsoft stock price plunged 4.61%, while Meta shares rallied 2.5% and Tesla share price jumped 4.16% after closing 2.26% lower.

US Fed Policy

The US Federal Reserve kept the benchmark interest rates unchanged at 4.25% – 4.50%, broadly in line with Wall Street estimates. Fed Chair Jerome Powell said officials are not in a rush to lower interest rates, adding the central bank is pausing to see further progress on inflation following a string of rate reductions last year.

Microsoft Q2 Results

Microsoft shares tanked nearly 5% after it reported December quarter earnings and forecast disappointing growth in its Azure cloud computing business. Microsoft’s total revenue rose 12% to $69.6 billion in the fiscal second quarter ended December, compared with analysts’ average estimate of $68.78 billion, according to data compiled by LSEG. The company reported a profit of $3.23 per share, beating expectations of $3.11 per share.

Revenue of its Intelligent Cloud unit, which includes the Azure platform, rose to $25.54 billion, missing expectations of $25.76 billion. Microsoft CFO Amy Hood said Azure would grow between 31% and 32% in the current fiscal third quarter, below the 33% Wall Street expects, according to data from Visible Alpha.

Meta Q4 Results

Meta Platforms Q4 revenue beat Wall Street expectations but the company predicted sales in the current first quarter may not meet forecasts. The Facebook and Instagram parent company expects first quarter revenue between $39.5 billion and $41.8 billion, compared with analysts’ average estimate of $41.72 billion, according to data compiled by LSEG.

Meta earned $20.83 billion, or $8.02 per share, in Q4, up 49% from $14.02 billion, or $5.33 per share, in the same period a year earlier. Revenue grew 21% to $48.39 billion from $40.11 billion. Meta shares gained 2.29% in the extended trade.

Tesla Q4 Results

Tesla reported lower than expected profits but said it expects vehicle sales to climb this year after a challenging 2024. Tesla share price rallied 4.16% in extended trade after closing 2.26% lower.

The Elon Musk-led electric vehicle maker said its quarterly net income adjusted for one-time items rose 3% to $2.6 billion, or 73 cents a share — less than analysts’ estimate of 77 cents. Tesla’s Q4 revenue rose 2% to $25.7 billion, also missing analyst estimates. Full-year auto sales fell 1% to just under 1.8 million vehicles.

Gold Prices Today

Gold prices held losses after US Fed Chair Jerome Powell said officials won’t rush to lower US interest rates. Bullion traded near $2,760 an ounce, within about $30 of its all-time high.

Catch US Fed Meeting Live Updates here

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.