Indian stock market: Domestic equity benchmark indices Sensex and Nifty 50 are expected to open higher on Friday on strong momentum from global peers.
Asian markets rose, and US stocks closed higher overnight as weak employment data reignited hopes for interest rate cuts from the US Federal Reserve.
On Thursday, major indexes in the Indian stock market fell for the fifth consecutive day, with the Nifty 50 index falling below the 22,000 level, closing at a sharp drop.
The Sensex fell by 1,062.22 points or 1.45% to end at 72,404.17, while the Nifty 50 fell by 345.00 points or 1.55% to end at 21,957.50.
“Continued sell-off in FII stocks and concerns over less favorable election results have soured market sentiment. Voter turnout (65.68%) in the same seats (excluding Assam) is higher than in 2019. Slightly lower, with investors nervous about the expected number of seats for the BJP.Barring any major positive catalysts, we expect this volatility to continue in the near term until the Nifty dips below the 21,700 zone. We may see some weakness towards ,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd.
Here are today’s key global market cues for Sensex.
asian market
Asian markets rose on Friday following Wall Street’s gains overnight amid renewed hopes for a rate cut.
Japan’s Nikkei Stock Average rose 1.52%, and TOPIX rose 1.22%. South Korea’s Kospi rose 1% and Kosdaq rose 0.97%. Hong Kong’s Hang Seng Index futures showed solid gains.
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Gift Nifty is trading around 22,155 levels, at a premium of nearly 80 points from the previous close of Nifty futures, indicating a gap upstart for the Indian stock market index.
Also read: Buy or sell: Vaishali Parekh recommends 3 stocks to buy today – May 10
wall street
U.S. stock markets ended higher on Thursday, with the Dow Jones Industrial Average ending the day for the seventh day in a row as weekly jobless claims data raised expectations for interest rate cuts from the Federal Reserve. It rose.
The Dow Jones Industrial Average rose 331.37 points, or 0.85%, to 39,387.76 points, and the S&P 500 rose 26.41 points, or 0.51%, to 5,214.08 points. The Nasdaq Composite Index rose 43.51 points (0.27%) to end at 16,346.27.
Big tech stocks Apple, Amazon.com and Meta Platforms rose 0.6% to 1% as Treasury yields fell.
Equinix stock rose 11.5%, while Arm Holdings fell 2.3% and Nvidia stock fell 1.8%. Roblox fell 22.1% and Robinhood Markets stock fell 3.1%. Spirit Airlines stock rose 12.9%.
Bank of England policy
The Bank of England Monetary Policy Committee will keep interest rates unchanged at 5.25%, the highest level in 16 years, after Deputy Governor Dave Ramsden, along with Swati Dhingra, voted in favor of lowering the rate to 5%. passed with a vote of 7 to 2. Economists polled by Reuters had largely expected a further 8-1 split to keep interest rates on hold.
Read here: Bank of England keeps key interest rate at 5.25%, highest level in 16 years, moving closer to first cut since 2020
U.S. unemployment insurance claims
The number of Americans filing new claims for unemployment benefits rose more than expected last week. The number of first-time claims for state unemployment benefits rose by 22,000 for the week ending May 4, to a seasonally adjusted 231,000, according to the Labor Department.Economists polled by Reuters had predicted 215,000 insurance claims in the past week.
oil price
Oil prices rose on signs of economic improvement in China.
Brent futures rose 0.38% to $84.20 a barrel, while US West Texas Intermediate crude oil rose 0.47% to $79.63.
Read here: Stocks and bonds profit from $25 billion in Treasury sales: Market Wrap
dollar
The dollar weakened against most currencies as economic data showed further signs of a softening in the U.S. labor market, Reuters reported. The dollar index, which measures the dollar against a basket of currencies, fell 0.22% to 105.28.
(Information provided by Reuters)
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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