Sensex Is Trading Weaker Today

Except US and UK, stocks elsewhere ended higher

Dipanwita Mazumdar

Economist,

Bank of Baroda

Mumbai, March 5, 2024:Global markets are eyeing China’s official economic target for CY24. GDP growth target has been set at 5%, in line with last year. Fiscal deficit as % of GDP has been kept at 3%. CPI and unemployment rate has also been retained at 3% and 5.5% respectively. Broadly, Asian stocks reacted negatively, as investors were anticipating more fiscal measures. Elsewhere, investors are awaiting Fed Chair’s comments who is likely to reiterate the delay of rate cut cycle. Even Atlanta Fed President said that a rate cut might only be pencilled in Q3.On macro front, UK’s BRC sales data reflected some comfort on inflation. In Japan, CPI firmed up, ever core remained sticky. In China, Caixin services PMI inched a tad down to 52.5 from 52.7 in Jan’24. On domestic front, system liquidity moved to surplus of Rs 40,902 crore. 

• Except US and UK, stocks elsewhere ended higher. Stocks in US receded from record-highs as investors await labour market data and Fed Chair’s testimony. Comments from Atlanta Fed President supporting a delay in rate cuts also impacted investors’ sentiments. Asian markets rose, with Japan’s Nikkei rising to a fresh record-high. Sensex too rallied led by gains in metal and oil&gas stocks. However it is trading weaker today, in line with other Asian stocks.
• Global currencies closed mixed against the dollar. DXY was broadly unchanged as investors await comments from Fed Chair and US payroll report. JPY depreciated further. EUR rose ahead of ECB meeting, while GBP awaited UK’s Budget announcement. INR is trading weaker today, while other Asian currencies are trading mixed.
• Global yields closed mixed and traded in a narrow range. Investors remained cautious looking for cues ahead of Fed Chair’s testimony before Congress. The expectation is to carry the same undertone of a delayed start in rate cut cycle. India’s 10Y yield closed stable and is trading at the same level today.

(The views expressed in this research note are personal views of the author(s) and do not necessarily reflect the views of Bank of Baroda. Nothing contained in this publication shall constitute or be deemed to constitute an offer to sell/ purchase or as an invitation or solicitation to do so for any securities of any entity.)