The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday amid mixed global market cues.
Asian markets traded mixed, while the US stock market ended higher overnight, led by banks and chip stocks.
The BSE and NSE were shut for trading on Thursday due to the stock market holiday on account of municipal corporation elections in Maharashtra.
On Wednesday, the Indian stock market extended losses for the second consecutive session as persisting uncertainty over an India-US trade deal, and relentless foreign capital outflow continued to weigh on sentiment.
The Sensex declined 244.98 points, or 0.29%, to close at 83,382.71, while the Nifty 50 settled 66.70 points, or 0.26%, lower at 25,665.60.
“Markets are expected to trade sideways, with investors looking at ongoing earnings, developments on the India-US trade deal front, and cues on the upcoming Budget,” 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. Japan’s Nikkei 225 fell 0.52%, and the Topix declined 0.57%. South Korea’s Kospi rose 0.26%, while the Kosdaq dropped 0.59% down. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,787 level, a premium of nearly 68 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Thursday after two days of declines, led by banks and chip stocks.
The Dow Jones Industrial Average gained 292.81 points, or 0.60%, to 49,442.44, while the S&P 500 rose 17.87 points, or 0.26%, to 6,944.47. The Nasdaq Composite closed 58.27 points, or 0.25%, higher at 23,530.02.
Nvidia stock price gained 2.10%, AMD shares rose 1.93%, BlackRock share price rallied 5.9%, while Goldman Sachs stock price jumped 4.6% and Morgan Stanley shares surged 5.8%. US-listed shares of TSMC rallied 4.4%.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 198,000 for the week ended January 10. Economists polled by Reuters had forecast 215,000 claims for the latest week.
BMC Exit Poll Results
Most of the exit polls have predicted a smooth victory for the BJP-led Mahayuti alliance in BMC polls. Exit polls done by Axis My India, the JVC, and Sakal have predicted a sweep for the ruling alliance of Maharashtra in Mumbai’s corporation. Voting for 29 municipal corporations of Maharashtra, including BMC, was held on January 15 and the counting of votes will be done today, January 16.
US Dollar
The US dollar hit a six-week high as jobless claims unexpectedly fell. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.24% to 99.31, and reached 99.49, the highest since December 2. The euro fell 0.25% to $1.1613, and got to $1.1592, also the lowest since December 2, Reuters reported. The Japanese yen was down 0.02% against the greenback at 158.48 per dollar.
Gold, Silver Prices
Gold prices declined as weaker-than-expected US weekly jobless claims data boosted dollar, while US President Donald Trump’s moderated tone on Iran further weighed on safe-haven demand for the metal. Spot gold price fell 0.1% to $4,614.93 per ounce. US gold futures for February delivery settled 0.3% lower at $4,623.70.
Crude Oil Prices
Crude oil prices steadied after its biggest decline since June after the US indicated it would hold off on attacking Iran for now. Brent crude oil fell 4.15% to $63.76 a barrel, while the US West Texas Intermediate (WTI) crude futures rose 0.25% to $59.34 a barrel after dropping 4.6% on Thursday.
(With inputs from Reuters)
