The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday following a positive trend in global markets. Asian markets traded higher, while the US stock market closed in the green overnight amidst renewed hopes of interest rate cuts by the US Federal Reserve after weak employment data.
On Thursday, the Indian stock market experienced its fifth consecutive day of sell-offs, with both the Sensex and Nifty 50 witnessing significant declines. The Sensex dropped 1,062.22 points, or 1.45%, to close at 72,404.17, while the Nifty 50 settled 345.00 points, or 1.55%, lower at 21,957.50.
Investor sentiments have been impacted by continued foreign institutional investor (FII) selling and concerns regarding the upcoming election outcome. The voter turnout ratio, slightly lower than in 2019, has contributed to nervousness among investors regarding the expected seat count for the Bharatiya Janata Party (BJP). Analysts anticipate ongoing volatility in the near term unless there are significant positive triggers.
Asian markets traded higher on Friday, buoyed by overnight gains on Wall Street and renewed hopes for interest rate cuts. Japan’s Nikkei 225 rallied 1.52%, while South Korea’s Kospi surged 1% and Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty was trading around 22,155 level, signaling a premium of nearly 80 points from the Nifty futures’ previous close, suggesting a gap-up start for the Indian stock market indices.
In the US, the stock market ended higher on Thursday, with the Dow Jones Industrial Average extending gains for the seventh consecutive day. This came after weekly jobless claims data raised hopes for interest-rate cuts by the US Federal Reserve. The Dow Jones Industrial Average rallied 331.37 points, or 0.85%, to 39,387.76.
In other economic news, the Bank of England’s Monetary Policy Committee voted to keep rates at a 16-year high of 5.25%, despite some calls for a cut. Meanwhile, crude oil prices traded higher on signs of an improving Chinese economy, with Brent futures rising to $84.20 a barrel.
The dollar weakened against most currencies following economic data showing signs of softening in the US labor market. The dollar index fell to 105.28.
On Tuesday, the Indian stock market may open cautiously following mixed cues from global peers. While Asian markets traded mostly higher, US stocks ended mixed, with the Dow Jones Industrial Average snapping an eight-day winning streak. The Sensex gained 111.66 points, or 0.15%, to close at 72,776.13, while the Nifty 50 settled 48.85 points, or 0.22%, higher at 22,104.05.
Investors are closely watching key inflation readings and earnings reports later in the week, amidst ongoing volatility and concerns over FII selling. Technical analysis suggests immediate hurdles for Nifty at 22,500 and 22,795, with downside risk at its biggest support at 21,710.
In summary, while global cues indicate a positive opening for the Indian stock market, ongoing volatility and external factors continue to influence investor sentiment.
Following a strong opening weekend, Tushar Hiranandani’s biographical film Srikanth, featuring Rajkummar Rao, Jyothika, and Alaya F in lead roles, continues to make waves at the Indian box office. Despite a predictable decline in daily collections on Monday, the film has outperformed many recent Hindi releases, showcasing its resilience and audience appeal.
