The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open flat on Thursday, following a three-day rally, amid upbeat cues from global markets.

Institutional Flows:

The minutes of the January meeting of the US Federal Reserve showed that policymakers decided to keep interest rates unchanged, with a near-unanimous vote. The tone remained cautiously hawkish, as officials indicated they are not in a hurry to cut rates. While some members are open to easing if inflation moderates as expected, others are prepared to tighten policy if price pressures persist.

Following the minutes, the US dollar held on to recent gains, with the euro staying below $1.18 and the Japanese yen steady at 154.78 per dollar after a 1% overnight decline. Gold prices steadied after a sharp 2% rally in the previous session, with spot gold slipping 0.2% to $4,969.37 per ounce and silver falling 0.2% to $77.0590 per ounce. Crude oil prices also remained firm after their biggest daily gain since October, supported by geopolitical concerns, as Brent crude rose 0.14% to $70.46 per barrel and WTI crude gained 0.20% to $65.32 per barrel.

Global Markets:

Global markets remained supportive, with Wall Street ending higher overnight, led by gains in technology stocks. The Dow Jones Industrial Average rose 0.26% to 49,662.66, the S&P 500 advanced 0.56% to 6,881.31, and the Nasdaq gained 0.78% to close at 22,753.64. Technology names such as Nvidia, Meta, Amazon, Microsoft, and Tesla registered gains, while AMC declined.

Semiconductor-related stocks including Sandisk, Western Digital, and Seagate Technology also saw strong buying. Asian markets followed the positive US lead, with Japan’s Nikkei 225 rising 0.52% and the Topix gaining 0.39%. South Korea’s Kospi jumped 2.76% to a fresh record high, while the Kosdaq advanced 0.59%. Hong Kong and mainland China markets remained closed for the Lunar New Year holiday.

Domestic Market:

The Indian stock market extended its gains for the third consecutive session on Wednesday, although the session remained choppy. The Sensex climbed 283.29 points, or 0.34%, to close at 83,734.25, while the Nifty 50 rose 93.95 points, or 0.37%, to settle at 25,819.35, supported by buying across most sectors. Gift Nifty was trading around the 25,833 level, at a premium of nearly 5 points to the previous Nifty futures close, indicating a flat start for Thursday. Market participants expect indices to remain firm with an upward bias, guided by global cues and domestic sector-specific developments, even as the recent three-day rally suggests a phase of gradual recovery.