The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday, following mixed cues from global markets.
Asian markets traded mostly higher, with the Nikkei hitting fresh life-time high, while the US stock market ended lower overnight, weighed down by tech stocks.
On Thursday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 25,900 level.
The Sensex declined 592.67 points, or 0.70%, to close at 84,404.46, while the Nifty 50 settled 176.05 points, or 0.68%, lower at 25,877.85.
“Profit-taking has taken center stage on the back of weak European and Asian cues, while investors also exercised caution after the US Fed chairman indicated that further rate cuts over next two months look unlikely. Traders are also cutting their positions awaiting trade deals between the US and China, which will provide some clarity to world equity markets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly higher on Friday after a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping. Japan’s Nikkei 225 rallied 1.7% to hit a fresh record, while the Topix gained 0.79%, also scaling a new peak. South Korea’s Kospi gained 0.20% and the Kosdaq rose 0.47%. Hong Kong’s Hang Seng index futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 26,057 level, a premium of nearly 25 points from the Nifty futures’ previous close, indicating a mildly positive start for the Indian stock market indices.
Wall Street
US stock market ended lower on Thursday with the Nasdaq Composite and the S&P 500 leading losses, dragged by technology stocks.
The Dow Jones Industrial Average declined 109.88 points, or 0.23%, to 47,522.12, while the S&P 500 dropped 68.25 points, or 0.99%, to 6,822.34. The Nasdaq Composite closed 377.33 points, or 1.57%, lower at 23,581.14.
Nvidia stock price fell 2.04%, AMD share price declined 3.59%, Meta shares plunged 11.3%, Microsoft shares dropped 2.9% and Google-parent Alphabet stock price gained 2.5%. Tesla stock price slipped 4.63%, Cardinal Health shares rallied 15.4% and Chipotle Mexican Grill shares tumbled 18.2%.
ECB Policy
The European Central Bank kept interest rates unchanged at 2% for the third meeting in a row and repeated that policy was in a “good place” as economic risks receded. The ECB has been on hold since cutting rates by a total of 2 percentage points in the year to June.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits fell last week, economists estimated. Initial claims for state unemployment benefits dropped to a seasonally adjusted 219,000 for the week ended October 25 from 232,000 in the prior week, JPMorgan calculated.
Gold Prices
Gold prices traded higher, and were on track for a third straight monthly gain. Spot gold price rose 0.3% to $4,034 per ounce. Bullion has gained 4.5% so far this month. US gold futures for December delivery slipped 1.1% to $3,955 per ounce.
Dollar
The US dollar held its ground after reaching a three-month high. The dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.478. The US dollar was down 0.1% at 153.935 yen, and against the offshore Chinese yuan, the US dollar was steady at $7.1089. The euro was 0.1% firmer at $1.1572 and Sterling was up 0.1% at $1.316.
Crude Oil Prices
Crude oil prices declined, heading for a third straight monthly decline. Brent crude futures slipped 0.40% to $64.74 a barrel, while US West Texas Intermediate crude was at $60.31 a barrel, down 0.43%.
(With inputs from Reuters)
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