Global Market Update

Advisory Bazaar Info Services

Global equity markets remained upbeat on Wednesday, supported by easing geopolitical concerns and optimism ahead of the Reserve Bank of India’s monetary policy announcement.

US equity markets ended sharply higher, with major indices gaining between 1.71% and 2.59%. European markets closed on a flat to positive note, while Asian equities extended gains, tracking the strong momentum from Wall Street.

GIFT Nifty was trading around 170 points higher, indicating that Nifty futures are likely to open near the 24,750 level.

Investor focus is now on the RBI Monetary Policy Committee (MPC) decision scheduled for 10:00 a.m. Market participants and economists widely expect the central bank to keep the repo rate unchanged at 5.25%, preferring to maintain the status quo amid elevated global uncertainty. Although consumer inflation has edged higher in recent months, it remains within the RBI’s target range.

Wall Street began August on a strong footing as signs of easing US-Iran tensions boosted investor sentiment. Lower crude oil prices and softer US Treasury yields further supported equities, helping the Dow Jones Industrial Average close at a record high.

Asian markets are also trading in positive territory as investors assess the possibility of a US-Iran agreement that could restore normal shipping through the Strait of Hormuz, easing concerns over global energy supplies.

In the energy market, crude oil prices are trading marginally higher after reports of renewed tensions between the United States and Iran. Brent crude was up 0.58% at $79.78 per barrel.

Market Outlook: Global market sentiment remains positive ahead of the RBI policy announcement. The central bank’s commentary, developments in US-Iran relations, and movements in crude oil prices are expected to be the key drivers for domestic markets during the day.