The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday amid short-covering after steep losses in the previous session and following mixed global market cues.
Asian markets traded mixed, while the US stock market ended lower overnight as inflation fears due to the soaring crude oil prices amid the US-Iran war dented interest rate cut hopes.
On Thursday, the Indian stock market succumbed to a massive sell-off, snapping its three-day streak of impressive gains.
The Sensex crashed 2,496.89 points, or 3.26%, to close at 74,207.24, while the Nifty 50 settled 775.65 points, or 3.26%, lower at 23,002.15.
“Markets appear to be in a phase of heightened fragility, where sentiment is being driven by rapidly evolving geopolitical developments and sharp rise in crude prices. Given the intensifying tensions around energy infrastructure in West Asia, we remain cautious on the market in the near term and expect volatility to persist,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Friday, following overnight losses on Wall Street, amid selling across asset classes. The MSCI Asia Pacific Index rose 0.3% after losing 2.6% in the last session. Japan’s markets were closed for a public holiday. South Korea’s Kospi rose nearly 1%, while the Kosdaq gained 0.94%. Hong Kong Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,177 level, a premium of nearly 122 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended lower on Thursday, as investors remained pessimistic about the potential for future interest rate cuts amid worries about high inflation stemming from soaring oil prices.
The Dow Jones Industrial Average fell 0.44% to 46,021.43, while the S&P 500 declined 0.27% to end the session at 6,606.49. The Nasdaq closed 0.28% lower at 22,090.69.
Nvidia stock price fell 1.02%, AMD shares rose 2.91%, Apple share price eased 0.39%, Micron Technology shares dropped 3.8% and Tesla stock price declined 3.2%.
US-Iran War
Iran intensified its attacks on oil and gas facilities around the Gulf in retaliation for an Israeli attack on a key Iranian gas field. US President Donald Trump warned that the US would “massively blow up the entirety” of Iran’s gas field if it continues attacking its neighbors. Israeli Prime Minister Benjamin Netanyahu declared that Iran no longer can enrich uranium or make ballistic missiles. Israel also pledged to refrain from more strikes on a key Iranian gas field.
ECB Policy
The European Central Bank kept its key interest rate at 2% on Thursday and warned that the war in Iran was clouding the outlook for growth and inflation in the euro zone. The central bank kept its options open, saying it was monitoring the war and its impact on inflation – both including and excluding energy prices – and on growth.
Bank of England Policy
The Bank of England decided to keep borrowing costs on hold, while the policymakers said they were “ready to act” to see off risks from war in the Middle East. The BoE’s Monetary Policy Committee voted 9-0 to keep the Bank Rate at 3.75%. Economists polled by Reuters had mostly expected a 7-2 vote to hold rates. The MPC said inflation could go as high as 3.5% over the next two calendar quarters.
China LPR
China left benchmark lending rates unchanged for the 10th consecutive month in March, in line with market expectations. The one-year loan prime rate (LPR) was kept at 3.0%, while the five-year LPR was unchanged at 3.5%.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 205,000 for the week ended March 14. Economists polled by Reuters had forecast 215,000 claims for the latest week.
Gold Rate Today
Gold prices headed for the biggest weekly loss in six years, as the US-Iran war boosted energy prices and reduced interest rate cuts expectations. Gold price was little changed at $4,640.85 an ounce, and is down almost 8% this week. Silver prices fell toward $72 an ounce, down about 10% this week.
Crude Oil Prices
Crude oil prices fell from its highest close since July 2022. Brent crude oil price declined 1.01% to $107.57 a barrel, while the US West Texas Intermediate (WTI) crude futures dropped 1.74% to $93.89.
(With inputs from Reuters)
