Nifty, Sensex Likely to Open Higher; Global Cues Stay Mixed
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
Asian markets were mixed in early trade, while Wall Street closed higher led by banking and semiconductor stocks.
Pre-Market Update at 7:37 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday amid mixed global cues. Asian markets were mixed in early trade, while Wall Street closed higher led by Banking and Semiconductor stocks.
The BSE and NSE were shut on Thursday due to a trading holiday for Maharashtra municipal corporation elections. On Wednesday, Indian equities extended losses for the second straight session as uncertainty over the India-U.S. trade deal and sustained foreign fund outflows weighed on sentiment. The Sensex fell 244.98 points (0.29 per cent) to 83,382.71, while the Nifty 50 slipped 66.70 points (0.26 per cent) to settle at 25,665.60.
Asian markets traded mixed on Friday. Japan’s Nikkei 225 fell 0.52 per cent and the Topix declined 0.57 per cent. South Korea’s Kospi gained 0.26 per cent, while the Kosdaq slipped 0.59 per cent. Hong Kong’s Hang Seng index futures indicated a positive start.
Gift Nifty traded around 25,787 levels, at a premium of nearly 68 points versus the previous close of Nifty futures, indicating a positive opening for Indian equities.
In the U.S., the stock market ended higher on Thursday after two sessions of decline. The Dow Jones Industrial Average rose 292.81 points (0.60 per cent) to 49,442.44, the S&P 500 gained 17.87 points (0.26 per cent) to 6,944.47, and the Nasdaq Composite added 58.27 points (0.25 per cent) to 23,530.02.
Weekly U.S. unemployment claims unexpectedly dropped, suggesting labour market resilience. Initial jobless claims fell by 9,000 to 198,000 for the week ended January 10, compared to Reuters estimates of 215,000.
In domestic politics, exit polls predicted a strong victory for the BJP-led Mahayuti alliance in Mumbai’s BMC elections. Surveys by Axis My India, JVC and Sakal suggested a sweep for the ruling alliance. Voting for 29 municipal corporations was held on January 15, and counting takes place today, January 16.
The U.S. Dollar Index hit a six-week high after jobless claims came in lower than expected. The index rose 0.24 per cent to 99.31 and touched 99.49 Intraday. The euro fell 0.25 per cent to USD 1.1613, briefly touching USD 1.1592, its lowest since December 2. The Japanese yen weakened 0.02 per cent to 158.48 per USD.
Gold prices edged lower as the stronger U.S. dollar reduced safe-haven demand. A moderated tone by U.S. President Donald Trump on Iran further eased geopolitical risk. Spot gold fell 0.1 per cent to USD 4,614.93 per ounce, while U.S. gold futures for February delivery settled 0.3 per cent lower at USD 4,623.70.
Crude oil prices steadied after their sharpest fall since June. The U.S. signalled it would hold off military action against Iran for now. Brent crude fell 4.15 per cent to USD 63.76 per barrel, while WTI crude futures rose 0.25 per cent to USD 59.34 per barrel after dropping 4.6 per cent on Thursday.
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Disclaimer: The article is for informational purposes only and not investment advice.