Global markets wrapped up the week on a strong footing as investor sentiment improved following U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. Powell’s comments signaled that the Fed remains flexible and could consider interest rate cuts sooner rather than later, keeping the door open for a possible move as early as September.
The dovish tone helped Wall Street rally, with major U.S. indices logging their biggest gains in months. The upbeat momentum is expected to ripple across Asian and European markets as well, setting a positive backdrop for Monday’s trade.
In India, derivatives action provided a glimpse of optimism. Gift Nifty futures closed at 25,000, rising 121 points or 0.49%, hinting at a potential gap-up start for domestic equities in the next session.
However, the underlying cash market painted a more cautious picture on Friday. The BSE Sensex dropped 693.86 points to end at 81,306.85, while the Nifty 50 slipped 210 points, settling at 24,870.10, both down 0.85%. The decline reflected traders booking profits ahead of Powell’s address, even as futures suggested recovery hopes.
Going into the new week, all eyes will remain on global cues and foreign inflows, with rate cut expectations likely to dominate market mood. A gap-up opening looks likely, but sustained gains may hinge on whether global optimism translates into stronger domestic participation.