The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open flat on Friday ahead of the Reserve Bank of India’s monetary policy announcement, and subdued cues from global markets.
Asian markets traded lower, while the US stock market ended mixed overnight as rising US Federal Reserve interest rate cut bets supported sentiments.
Market participants will focus on the RBI policy today. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is expected to keep the repo rate unchanged at 5.50%.
On Thursday, the Indian stock market ended higher, snapping its four-session losing streak, with the Nifty 50 closing above 26,000 level.
The Sensex rose 158.51 points, or 0.19%, to close at 85,265.32, while the Nifty 50 settled 47.75 points, or 0.18%, higher at 26,033.75.
“Markets are likely to remain in consolidation mode, though a potential rate-cut by the RBI could act as a strong short-term catalyst,” 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 lower on Friday following an overnight subdued trading session on Wall Street. Japan’s Nikkei 225 index fell 1.26%, while the Topix declined 1.12%. South Korea’s Kospi rose 0.12%, while the Kosdaq retreated 0.25%. Hong Kong’s Hang Seng Index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 26,177 level, a discount of nearly 10 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.
Wall Street
US stock market ended mixed on Thursday as investors weighed a labor market report and other economic data, while elevated hopes for a Federal Reserve interest-rate cut next week supported sentiment.
The Dow Jones Industrial Average fell 31.96 points, or 0.07%, to 47,850.94, while the S&P 500 gained 7.40 points, or 0.11%, to 6,857.12. The Nasdaq Composite closed 51.04 points, or 0.22%, higher at 23,505.14.
Nvidia share price rallied 2.12%, Amazon shares fell 1.4%, Apple stock price declined 1.21%, Meta Platforms shares surged 3.4% and Salesforce shares climbed 3.7%. Tesla stock price gained 1.73%.
Vladimir Putin India Visit
Russian President Vladimir Putin has begun his 2-day visit to India. He arrived in Delhi on 4 December evening for the 23rd India-Russia Annual Summit. During this state visit, he will hold talks with Prime Minister Narendra Modi and discuss a range of regional and global issues of mutual interest.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits fell to a more than three-year low last week. Initial claims for state unemployment benefits fell 27,000 to a seasonally adjusted 191,000 for the week ended November 29, the lowest level since September 2022. Economists polled by Reuters had forecast 220,000 claims for the latest week.
Japanese Bond Yields
Japanese government bonds (JGBs) slid further, pushing yields to an 18-year high. The 10-year JGB yield rose 0.5 basis point to 1.94%, its highest level since July 2007. It is on track for a 13.5 bps gain this week, marking the steepest five-day climb since March, Reuters reported.
Sebi Proposals on Options Trading
Sebi proposed changes to how limits on equity index option positions are set, moving away from using the total contract value to a method that better reflects the actual risk of the positions. Under the proposal, trading members would be allowed to hold up to 15% of total market-wide positions in equity index options on a delta-adjusted basis.
Dollar
The US dollar languished not far from a five-week low against its major peers as investors braced for a Fed rate cut next week. The dollar index, which measures the currency against six rivals, was flat at 99.065. The dollar was little changed at 155.18 yen. The euro was flat at $1.1647 and sterling held steady at $1.3326.
Gold Prices
Gold prices held steady, as rising US Treasury yields offset support from a weaker dollar. Spot gold price fell 0.1% to $4,203.89 per ounce, while US gold futures for December delivery lost 0.2% to $4,233.60 per ounce.
Crude Oil Prices
Crude oil prices were little changed, with Brent crude up 0.09% at $63.32 per barrel, while US West Texas Intermediate was up 0.07% at $59.71 a barrel. WTI oil prices were heading for weekly gains of close to 2%, supported by an expected Federal Reserve interest rate cut, escalating US-Venezuela tensions and stalled peace talks in Moscow.
(With inputs from Reuters)
