Indian stocks are predicted to start relatively unchanged on Monday due to continued worries about inflation and interest rates. The forthcoming week could be highly unpredictable following the announcement of the election dates for the 543 Lok Sabha seats by the Election Commission of India.
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has sanctioned the implementation of the beta version of the T+0 settlement from March 28 on an optional basis. This new settlement will only apply to 25 specific stocks and a select group of brokers.
The current extraordinary economic growth rate in India, supported by a surge of investments, mirrors the growth trends of 2003-2007, when the average growth surpassed 8 percent, according to a report by Morgan Stanley economists.
Asian markets were inconsistent this morning, as financial investors reduced their expectations for cuts in the Federal Reserve interest rates in 2024. A slightly weaker yen contributed to a surge in Japan's Nikkei Index of over 2 percent. Mainland China and Hong Kong markets saw small gains as investors anticipate upcoming announcements on significant economic indicators, including information on business investments, retail sales, industrial production, and joblessness.
New bank loans in February were lower than expected, fuelling optimism about potential stimulating steps. The dollar remained stable during a week full of central bank meetings in Japan, Australia, the UK, and the United States. Gold struggled to gain momentum, while oil stabilised after the most significant weekly rise in a month.
US stocks ended lower on Friday, with bond yields rising slightly as investors await cues from the imminent Federal Open Market Committee meeting. Recovered manufacturing output in February and unchanged consumer sentiment and inflation expectations in March were reported in separate revelations.
New York Empire State Manufacturing Index experienced a drop from -2.4 in February to -20.9 in March 2024. The tech-dominant Nasdaq Composite fell one percent, with the S&P 500 dropping 0.7 percent, marking the third consecutive day of losses, and the Dow Jones Industrial Average declined half a percent.
European stocks also closed lower on Friday due to concerns about inflation and interest rates, with the pan-European STOXX 600 falling by 0.3 percent. The German DAX ended only slightly lower, the UK's FTSE 100 decreased by 0.2 percent, while France's CAC 40 finished relatively unchanged.
