Indian stock market: The equity benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday, amid mixed global market cues.
Asian markets traded mostly lower, while the US stock market ended higher overnight, with the S&P 500 and Dow Jones scaling record high closes.
On Thursday, the Indian stock market ended with steep losses on concerns over the fallout of 50% US tariffs on India’s economic growth.
The Sensex cracked 705.97 points, or 0.87%, to close at 80,080.57, while the Nifty 50 settled 211.15 points, or 0.85%, lower at 24,500.90.
“Overall, the market tone remains bearish, and investors will be closely watching whether the government announces relief measures or initiates negotiations to safeguard export-dependent industries,” said Hariprasad K, SEBI – registered Research Analyst and Founder – Livelong Wealth.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Friday, amid a slew of economic data in the region. Japan’s Nikkei 225 fell 0.33%, while the Topix declined 0.39%. South Korea’s Kospi dropped 0.19% while the Kosdaq Index fell 0.15%. Hong Kong’s Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 24,674 level, a premium of nearly 23 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Thursday, with the S&P 500 and Dow Jones Industrial Average notching record high closes.
The Dow Jones rose 0.16% to 45,636.90, while the S&P 500 gained 0.32% to end at 6,501.86, reaching a record high close for a second straight day. The Nasdaq closed 0.53% higher at 21,705.16.
Nvidia share price fell 0.82%, Alphabet shares rallied 2%, Amazon stock price rose 1.08%, Apple shares gained 0.9% and Broadcom stock jumped 2.78%. Tesla stock price slid 1.04%, Nike share fell 0.2%, Snowflake share price surged 20%, HP shares rallied 4.6%, while Hormel Foods stock price tumbled 13%.
US GDP
The US economy grew faster than initially thought in the second quarter. US GDP increased at a 3.3% annualized rate last quarter. The economy was initially reported to have grown at a 3.0% pace in the second quarter. Economists polled by Reuters had expected GDP growth would be raised to a 3.1% rate. The economy contracted at a 0.5% pace in the January-March quarter, which was the first GDP decline in three years.
US Jobless Claims
The number of Americans filing new applications for jobless benefits fell last week. Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 229,000 for the week ended August 23. Economists polled by Reuters had forecast 230,000 claims for the latest week.
US Federal Reserve
US Federal Reserve Governor Christopher Waller said he wants to start cutting interest rates next month and “fully expects” more rate cuts to follow to bring the Fed’s policy rate closer to a neutral setting, Reuters reported. “Based on what I know today, I would support a 25 basis point cut” at the upcoming September 16-17 FOMC meeting, he told the Economic Club of Miami.
India IIP Growth
India’s industrial production growth accelerated to a 4-month high of 3.5% in July this year due to good performance of the manufacturing sector. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 5% in July last year and by 2.3% in April-July, the first four months of this fiscal year, way slower than the 5.4% growth seen a year ago. It had expanded at a modest 1.5% in June.
Dollar
The dollar wobbled on rising odds of the Fed rate cut. The dollar index, which measures the US currency against six major peers, was at 97.917, on course for a 2% decline in the month. The euro was little changed at $1.1675, Sterling last bought $1.3509 and the Japanese yen fetched 146.97 per dollar.
Gold Prices
Gold prices hovered near their highest point in more than one month. Spot gold price held its ground at $3,413.80 per ounce, after hitting its highest point since July 23 on Thursday. Bullion has gained 3.6% so far this month. US gold futures for December delivery were flat at $3,473.80.
Crude Oil Prices
Crude oil prices traded lower to head for a monthly loss. Brent crude oil fell 0.73% to $68.12 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.70% to $64.15.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
