The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a negative note on Thursday, 27 August.
Asian markets traded broadly higher, meanwhile, US stock futures also rose after latest earnings reports from Nvidia and other major technology companies.
On Wednesday, the Indian equity benchmarks, Sensex and Nifty 50, ended in negative territory as investors booked profits ahead of crucial US inflation data. The Sensex declined 183 points, or 0.24%, to close at 77,472.94, while the Nifty 50 fell 127 points, or 0.52%, to settle at 24,207.75.
“The Indian equity markets delivered a divergent performance on Wednesday, with the Nifty surrendering early gains to end lower, while Bank Nifty outperformed sharply on strong buying in both private and public sector banks. The session was marked by a clear sectoral rotation, as investors shifted capital out of technology and consumer stocks into financials and the broader market, lifting the Nifty Midcap 100 to a record high even as the benchmark index remained range-bound,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Here are key global market cues for Sensex today:
Asian markets
Asian markets advanced on Thursday, August 27, after Nvidia’s strong sales outlook reinforced optimism that the artificial intelligence-driven market rally could continue.
MSCI’s Asia-Pacific index rose 0.6% in early trading, led by South Korea’s Kospi, which is often seen as a key indicator of AI-related investment trends and surged 2.22%. Japan’s Nikkei 225 gained 0.41%, while the broader Topix index climbed 0.32%. In contrast, Hang Seng futures moved against the broader regional trend, falling 0.2%.
Gift Nifty today
Gift Nifty was trading around the 24,333.50 level, down nearly 95 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
Stock futures moved higher on Wednesday night as investors assessed the latest quarterly earnings from Nvidia and other major technology companies.
Dow Jones Industrial Average futures rose 242 points, or 0.5%, while S&P 500 futures gained 0.6%. Nasdaq 100 futures outperformed, climbing 1.07%.
Meanwhile, all three major Wall Street indices ended Wednesday’s regular session largely unchanged. Along with a busy earnings calendar, investors are also gearing up for the Federal Reserve’s annual Jackson Hole symposium in Wyoming, which begins on Thursday.
Nvidia earnings
Nvidia’s revenue more than doubled year-on-year to $96.22 billion, surpassing analysts’ estimates of $92.17 billion. The company also reported an earnings per share (EPS) of $2.22, above the expected $2.10.
Looking ahead to fiscal 2028, Nvidia expects revenue to grow by around 70%. During the earnings call, CFO Colette Kress said customer projections indicate that the company’s growth could potentially double next year. For the ongoing third quarter of fiscal 2027, Nvidia has forecast revenue of $108 billion, with a possible variation of 2% in either direction.
US-Iran war
Iran and Oman are in the final stages of working out the details of an agreement to regulate control over the Strait of Hormuz, a senior Iranian source said on Wednesday. The development comes after Iran’s Revolutionary Guards stated that the two nations had reached an understanding on how the strategic waterway, which links major Gulf oil producers with global markets, and its revenues would be shared.
Before the US-Israel war against Iran began on February 28, the Strait of Hormuz handled oil and natural gas shipments accounting for nearly one-fifth of global consumption. However, after Iran moved to close the vital passage in response to the conflict, oil flows through the strait plunged to around one-fourth of their pre-war levels, according to ship-tracking data.
Crude oil prices
Oil prices declined on Thursday, extending their losing streak, as expectations grew that talks between Iran and Qatar could lead to the reopening of the crucial Strait of Hormuz and ease supply disruptions caused by the Middle East conflict.
Brent crude futures fell 60 cents, or 0.7%, to $87.24 per barrel, marking their fourth consecutive day of losses. Meanwhile, West Texas Intermediate crude futures dropped 56 cents, or 0.7%, to $81.67 per barrel, extending their decline to a fifth straight session.
Gold rate today
Gold prices steadied near $4,600 per ounce as investors assessed the Federal Reserve’s stance on persistent inflation ahead of this week’s annual Jackson Hole symposium.
Spot gold rose 0.5% to $4,615.27 per ounce at 0032 GMT, while US gold futures gained 0.4% to $4,669.50. The precious metal had declined on Wednesday after data indicated that US inflation continued to remain elevated.
Bullion edged higher after falling 1.4% in the previous session, bringing an end to its five-day winning streak. The sharp decline came after the inflation data reinforced expectations that the Federal Reserve could keep interest rates higher or potentially raise them further, creating pressure on non-yielding assets such as gold. Meanwhile, the US dollar recorded its biggest jump in two weeks, while bond yields also moved higher following the data.
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.
