Indian Stock Market Trade Setup for Tomorrow, January 17, 2025: Indian stock market indices surged for the third consecutive session on Thursday. The Nifty index closed above 23300. Market sentiments were optimistic, as US and UK CPI inflation data came lower than expected in December 2024, strengthening more interest rate cuts by the US Fed.
On Thursday, a decline in the US dollar, the US treasury yields, and upbeat quarterly earnings of US banking companies also supported the domestic markets. Sentiments were also cheerful, as a ceasefire agreement between Israel and Hamas eased geopolitical tensions.
Indian Stock Market Indices Today
The benchmark indices, BSE Sensex added 318.74 points or 0.42% to 77042.82, while the Nifty gained 98.60 points or 0.42% to 23311.80. Collectively, in the past three trading sessions, the Sensex and Nifty gained around 1%. The recently beaten-down PSU Bank and Metal stocks gained the most while FMCG and IT stocks declined today.
The broader markets outperformed the equity benchmarks, as the Nifty Midcap index rallied 1.08% while the Nifty Smallcap index jumped 1.67% today. The market breadth was strong. On the NSE, 1869 shares advanced while 524 shares declined.
The Foreign Institutional Investors (FIIs) continued to sell in the Indian stock markets, they offloaded shares worth Rs 4341.95 Cr. The Domestic Institutional Investors bought shares worth Rs 2928.72 Cr.
Economic News Impacted Today
The trade data released post-market on Wednesday showed that the Country’s trade deficit rose to $21.94 billion in December from $18.76 billion a year ago as exports fell by 1% to $38.01 billion due to global issues, while imports grew by 5% to $59.95 billion, including $4.7 billion in gold imports.
However, the December deficit was lower than November’s, as revised gold imports for November dropped to $9.84 billion from $14.86 billion, reducing the trade deficit to $32.8 billion from the earlier estimate of $37.8 billion.
Global Stock Markets Today
On the global front, the Asian stock market indices mostly closed higher on Thursday, following the positive cues from the US and UK overnight. Taiwan index gained the most in the region followed by Hang Seng and Kospi.
The European stock market indexes are trading higher on Thursday at 9.30 PM IST, as global sentiments are boosted after the release of US CPI inflation data on Wednesday. The regional index Stoxx 600 is up 0.61%. Richemont jumped 15% on a 10% rise in quarterly sales, while LVMH, Kering, and Christian Dior gained 8%. Moncler, Burberry, Swatch, and Hermes also performed well on the Stoxx index.
Tech stocks rose 1.37%, with ASM International and Be Semiconductor boosted by strong earnings from Taiwan Semiconductor.
In the US, Dow Jones, Nasdaq, and S&P 500 are trading flat notes on Thursday at 9.30 PM IST, as traders assessed earnings reports.
Bank of America edged higher after beating earnings and revenue estimates. Morgan Stanley rose 1.9% on strong fourth-quarter results, following similar beats from JPMorgan Chase and Goldman Sachs. Federal Reserve Governor Christopher Waller shared a more optimistic outlook on interest rate cuts after the CPI inflation data on Thursday, compared to some of his colleagues.
Indian Stock Market Tomorrow
Indian stock market is still looking cautious at the current juncture. The Nifty Index is having support at 23150 now for the next session. The sentiment on the street is neutral with mid and small-cap indices still in the negative zones even after the recent up-move. The Gift Nifty is down 33 points and trading at 23346 levels.
Conclusion
The Indian stock market ended with moderate gains on Thursday. Markets continued their winning streak for the third consecutive day driven by lower-than-expected US and UK inflation data, optimism over potential US Fed rate cuts, and easing geopolitical tensions.
Global cues remained positive, with Asian and European indices mostly higher, boosted by strong earnings reports and encouraging inflation data. However, cautious sentiment persists in Indian markets, with Nifty support at 23,150 for the next session.
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