Indian stock market: The equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday, following a strong rally in global markets.
Asian markets traded higher, while the US stock market rallied overnight, with all three major Wall Street indices positive record high close.
On Thursday, the Indian stock market ended higher, with the benchmark Nifty 50 closing above 25,000 level.
The Sensex gained 123.58 points, or 0.15%, to close at 81,548.73, while the Nifty 50 settled 32.40 points, or 0.13%, higher at 25,005.50.
“Rotational buying across key sectors and early signs of a reversal in themes like defense and railways are likely to keep the undertone positive. Amid this backdrop, we continue to advocate a ‘buy on dips’ strategy in the index and suggest focusing on accumulating quality names across sectors and themes that are moving in line with the benchmark,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Friday, tracking overnight rally on Wall Street. Japan’s Nikkei 225 gained 0.84%, while the Topix rose 0.61%. South Korea’s Kospi rallied 0.60%, and the Kosdaq added 0.65%. Hong Kong’s Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,181 level, a premium of nearly 77 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher, with Wall Street’s main indexes notching record-high closes after inflation data.
The Dow Jones rallied 1.36% to 46,108.00, while the S&P 500 gained 0.85% to end the session at 6,587.47. The Nasdaq closed 0.72% higher at 22,043.08.
Tesla stock price jumped 6%, JPMorgan shares rallied 1.67%, Goldman Sachs Group share price gained 1.92%, while Micron Technology stock surged 7.5%. Warner Bros Discovery shares jumped 29%, while Netflix share price declined 3.54%.
India-US Trade Deal
US ambassador-designate to India Sergio Gor said India and the US are “not that far apart” right now on a trade deal. Union Minister Piyush Goyal indicated that the first tranche of the agreement with the US on a trade deal should be finalised by November 2025.
US Inflation
US consumer prices increased by the most in seven months in August. US CPI rose 0.4% last month, the biggest gain since January, after increasing 0.2% in July. In the 12 months through August, the CPI advanced 2.9%, the largest increase since January, after climbing 2.7% in July. Economists polled by Reuters had forecast consumer prices would rise 0.3% in August and increase 2.9% on a YoY basis.
US Jobless Claims
The number of Americans filing new applications for jobless benefits increased sharply last week. Initial claims for state unemployment benefits jumped 27,000 to a seasonally adjusted 263,000 for the week ended September 6. Economists polled by Reuters had forecast 235,000 claims for the latest week.
Infosys Share Buyback
Infosys announced its largest ever share buyback programme in history worth ₹18,000 crore. The IT major will buy 10 crore fully paid-up equity shares, representing up to 2.41% of the total paid-up equity share capital of the company, at an amount of ₹1,800 per equity share. This represents a premium of about 19% on its last close on the BSE.
Gold Prices
Gold prices rose and were headed for a fourth consecutive weekly gain. Spot gold price gained 0.1% to $3,637.06 per ounce. Bullion gained 1.4% so far this week. US gold futures for December delivery were steady at $3,674.20.
Crude Oil Prices
Crude oil prices traded lower on concerns about possible softening of US demand and broad oversupply. Brent crude futures fell 0.45% to $66.07 a barrel, while US West Texas Intermediate crude declined 0.5% to $62.06. The benchmarks lost 1.7% and 2%, respectively, in the last trading session.
Dollar
The dollar remained under pressure on Friday after US inflation data. The dollar index was last trading at 97.585, and on track to record its second consecutive weekly decline. Against the yen the dollar was trading flat at 147.27 yen, the euro fell 0.1% to $1.1727, Sterling slipped 0.1% to $1.3572, while the offshore yuan was last at 7.1135 yuan per dollar, trading flat.
(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.
