Global sentiment drew support from Wall Street after the Federal Reserve opted to keep benchmark interest rates unchanged, matching general expectations. Semiconductor stocks led the overnight rally following upbeat financial results from South Korea's SK Hynix, which reinforced confidence in artificial intelligence spending. However, domestic currency pressures persist after the Indian rupee weakened by 21 paise to close at 95.28 against the dollar due to rising oil prices. Analysts maintain that domestic indices require a decisive technical breakout before establishing their next clear directional move.
Key points
Elevated India VIX levels and U.S. 10-year Treasury yields surpassing 5% signal an enviro…: Elevated India VIX levels and U.S. 10-year Treasury yields surpassing 5% signal an environment demanding caution from traders.
Resilient artificial intelligence infrastructure demand helped lift Wall Street equities…: Resilient artificial intelligence infrastructure demand helped lift Wall Street equities following robust earnings from chipmaker SK Hynix.
Financial markets are awaiting earnings reports from tech giants Microsoft and Alphabet t…: Financial markets are awaiting earnings reports from tech giants Microsoft and Alphabet to gauge the sustainability of recent equity gains.
Sources checked by our analysis pipeline: 1
STATE OF THE MARKETS
Tech View: A decisive breakout beyond these levels will trigger the next trending move. With elevated crude oil, US 10-year yields topping 5%, and India VIX above 15, traders should maintain caution and strictly align strategies with the prevailing broader trend.India VIX: India VIX, which is a measure of the fear in the markets, fell 0.1% to settle at 16.24 levels.
US stocks end higher
US stocks ended higher on Wednesday after the Federal Reserve held interest rates steady, as expected, while investors assessed the central bank's economic outlook and looked ahead to quarterly results from Microsoft and Alphabet, Reuters reported. The gains came as chipmakers recovered from a recent selloff, with strong results from South Korean chipmaker SK Hynix supporting optimism around demand for artificial intelligence infrastructure.Read more: Ahead of Market: 10 things that will decide stock market action on Thursday
Stocks in F&O ban today
1) Kaynes2) SAIL
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Investor enthusiasm for artificial intelligence faced a sharp reality check after massive spending undermined megacap tech valuations, triggering broad sell-offs across regional bourses. Compounding the pressure, market participants are navigating diverging global interest rate trajectories alongside renewed diplomatic efforts in the Middle East. These combined crosscurrents are prompting traders to reassess risk exposures ahead of crucial United States inflation data.
The city's de facto central bank mirrored American borrowing costs to maintain its currency peg within the established 7.75 to 7.85 band. Local policymakers warned that upcoming shifts in borrowing costs remain unpredictable due to broader American economic data. These impending adjustments could soon sway financial conditions and interbank liquidity across the territory.
Positive price momentum has captured market attention during the current trading session as shares demonstrate notable strength. Market participants are monitoring the advance closely to determine the fundamental reasons behind the shift. Clear catalysts for this specific upward movement have not yet been disclosed.