Indian stock market: The equity market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday amid worries over US tariffs, despite strong cues from global markets.
Asian markets traded higher, while the US stock market rallied, with all three major Wall Street indices posting record-high closes.
On Thursday, the Indian stock market extended its rally and ended higher after the US Federal Reserve cut benchmark interest rates by 25 bps on expected lines and hinted at two more rate cuts this year.
The Sensex gained 320.25 points, or 0.39%, to close at 83,013.96, while the Nifty 50 settled 93.35 points, or 0.37%, higher at 25,423.60.
“The favorable sentiment across the key sectors would keep the tone positive. We thus recommend focusing more on stock-specific opportunities now, preferring stocks where risk to reward is favorable,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Friday, following overnight rally on Wall Street. Japan’s Nikkei 225 index rose 0.7% to another fresh record high for a second consecutive day, and the Topix gained 0.84%. South Korea’s Kospi and Kosdaq were flat. Hong Kong’s Hang Seng Index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,472 level, a discount of nearly 39 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.
Wall Street
US stock market indexes posted record-high closes on Thursday, a day after the US Federal Reserve delivered a quarter-point interest rate cut.
The Dow Jones Industrial Average gained 124.10 points, or 0.27%, to 46,142.42, while the S&P 500 rose 31.61 points, or 0.48%, to 6,631.96. The Nasdaq Composite closed 209.40 points, or 0.94%, higher at 22,470.73.
Nvidia share price rallied 3.5%, Intel shares jumped 22.8% and Advanced Micro Devices stock fell 0.8%. Tesla stock price declined 2.12%, Apple shares dropped 0.46%, while Microsoft share price fell 0.31%. CrowdStrike stock price surged 12.8%, and Darden Restaurants shares fell 7.7%.
India-US Trade Deal
India’s chief economic adviser (CEA) V. Anantha Nageswaran said he expected a resolution to the tariff stand-off with the US within the next two months. Speaking at an industry gathering, Nageswaran said he believed Washington would soon roll back the additional 25% tariff imposed on New Delhi for buying Russian oil.
US Unemployment Claims
The number of Americans filing new applications for unemployment benefits fell last week. Initial claims for state unemployment benefits decreased 33,000 to a seasonally adjusted 231,000 for the week ended September 13. Economists polled by Reuters had forecast 240,000 claims for the latest week.
BoE Monetary Policy
The Bank of England left interest rates unchanged at 4% and left the prospect of more cuts later this year in doubt. BoE said it was slowing the pace of its quantitative tightening programme and skewing sales away from long-dated gilts. Policymakers voted 7-2 to slow the annual pace at which it unloads the gilts that it purchased from 2009 and 2021 to 70 billion pounds from 100 billion pounds ($136.47 billion), broadly in line with a Reuters poll median forecast of a decline to 67.5 billion.
SEBI on Adani Group
Sebi cleared the billionaire Gautam Adani and his group of stock manipulation allegations made by US short-seller Hindenburg Research, saying fund transfer between group companies did not fall foul of any regulation.
Japan Inflation
Japan’s inflation rose 2.7% in the year to August. The increase in the core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, matched a median market forecast and slowed from a 3.1% year-on-year rise in July.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
