Sensex Dips as China-Related Stocks Extend Rally/PTI
Sensex Dips as China-Related Stocks Extend Rally
The Indian stock market, represented by the Sensex, witnessed a decline of 327.57 points or 0.46% at 70,732.74, while the Nifty also slipped by 78.20 points or 0.36% at 21,375.75 at 10 am on Thursday.
The dip followed a two-day rally in China-related stocks as policymakers announced measures to bolster the economy. US tech shares experienced gains ahead of anticipated earnings reports.
Futures for Hong Kong and China’s benchmarks indicated potential gains, and US-listed Chinese companies saw a nearly 2% rise after the People’s Bank of China announced a cut in the reserve requirement ratio for banks. Meanwhile, South Korean shares slipped, and Japanese markets remained steady.
Global equity markets, as tracked by MSCI’s world equity index covering shares in 47 countries, rose 0.42%, reaching its highest intraday level since February 2022.
Positive earnings and economic data in Europe and the United States, coupled with optimism about China’s stimulus supporting its stock markets, contributed to the index’s ascent.
Investor attention is expected to shift to the European Central Bank later in the day, with a focus on clues for future policy directions. Euro-area data showing a contraction in private-sector activity in January may influence the ECB’s decisions on rate cuts.
In the US, investors are eagerly awaiting economic data, including gross domestic product figures, as they assess when the Federal Reserve might consider interest rate cuts. Wednesday’s release of US business activity data for January, which expanded the most in seven months, bodes well for stocks, according to analysts.
Oil prices advanced, nearing a one-month high, following unexpected drops in US crude inventories and China’s announcement of additional stimulus plans.