The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a negative note on Friday, 28 August.
Asian markets traded mixed, meanwhile, US stock futures were largely flat on Thursday night as investors kept an eye on corporate earnings and awaited Federal Reserve Chairman Kevin Warsh’s latest remarks.
On Thursday, the Indian stock market closed in negative territory, amid mixed global signals and rising oil prices as geopolitical uncertainties continued. The Sensex declined 539 points, or 0.70%, to settle at 76,933.59, while the Nifty 50 fell 117 points, or 0.48%, to close at 24,090.85.
“Indian equity markets ended lower on Thursday as domestic headwinds outweighed supportive global cues, with broad-based selling across key sectors offsetting the relief from softer crude oil prices and easing concerns over the Strait of Hormuz.
The Nifty remained under pressure through the session as weakness in heavyweight financial stocks and continued selling in PSU banks, FMCG, services and IT weighed on sentiment. HDFC Bank emerged as one of the key drags following news of a U.S. class-action lawsuit, while cautious investor positioning ahead of Fed Chair Kevin Warsh’s Jackson Hole speech kept the benchmark confined to a narrow range. The broader market reflected a cautious bias, with investors reluctant to build fresh positions amid lingering macroeconomic and geopolitical uncertainties,” said Ponmudi R, CEO of Enrich Money.
Here are key global market cues for Sensex today:
Asian markets
Asian markets traded on a mixed note in early deals on Friday, August 28, as investors awaited Federal Reserve Chair Kevin Warsh’s keenly watched speech at Jackson Hole, with markets expecting a potentially hawkish stance.
South Korea’s Kospi emerged as the biggest regional laggard, falling 1.04%, while MSCI’s broad Asia-Pacific index also edged lower. Hang Seng futures declined 0.5%, indicating a weak opening for Hong Kong markets.
Japanese stocks, however, moved against the broader regional trend. The Nikkei 225 gained 0.66%, while the Topix rose 1.04%, even as the Japanese yen remained largely unchanged at 159.33 against the US dollar.
Gift Nifty today
Gift Nifty was trading around the 24,251 level, down nearly 30.90 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
S&P 500 futures were largely unchanged on Thursday night as investors kept an eye on corporate earnings and awaited the latest remarks from Federal Reserve Chairman Kevin Warsh.
Futures linked to the benchmark index edged down 0.1%, while Nasdaq 100 futures declined 0.2%. Dow Jones Industrial Average futures also slipped 28 points, indicating little movement overall.
Wall Street stocks gained on Thursday, driven by Nvidia’s nearly 9% surge following its earnings. The technology sector, along with the S&P 500 and Nasdaq Composite, posted their strongest single-day performance since August 4.
Fed chair Kevin Warsh’s speech in Jackson Hole
Traders are awaiting Warsh’s upcoming speech at the central bank’s annual symposium in Jackson Hole, Wyoming. Although the event is not linked to a formal policy meeting, investors will closely monitor his remarks for clues about the future direction of interest rates.
According to CME’s FedWatch Tool, Fed funds futures currently indicate around a 64% probability that the central bank will keep interest rates unchanged at its meeting next month.
US-Iran war
According to a Wall Street Journal report, the Trump administration has repeatedly conveyed to mediators that it is not interested in reviving the memorandum of understanding reached in June, adding to the challenges of restarting diplomatic talks.
Earlier on Thursday, Washington said it was not engaged in negotiations with Iran, despite efforts by several countries to bring the two sides back to the table.
Meanwhile, the US on Monday imposed what it described as the “toughest sanctions in history” on Iran. Tehran condemned the move as an “inhumane and hostile act,” claiming that the sanctions had become ineffective.
Crude oil prices
Oil prices declined on Friday and were headed for their first weekly loss in three weeks, despite gaining in the previous session after a report indicated that U.S. President Donald Trump was unwilling to return to earlier terms of a deal with Iran.
Brent crude futures had fallen 25 cents, or 0.3%, to $89.45 a barrel, while West Texas Intermediate (WTI) crude futures slipped 22 cents, or 0.3%, to $83.31 per barrel.
Both benchmarks were set to post weekly declines, with Brent down 5.3% and WTI lower by 4.3% for the week.
Gold rate today
Gold prices remained subdued in early Asian trade on Friday as investors awaited highly anticipated comments from U.S. Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
Spot gold slipped 0.2% to $4,589.85 per ounce as of 0041 GMT, while U.S. gold futures declined 0.5% to $4,642.60.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
