Indian Stock Market: Domestic stock markets are expected to open lower on Friday following a mixed outlook in global markets.
Asian markets traded mixedly, while US stocks ended mostly higher overnight after falling sharply in the previous session. Indian markets were closed on Thursday for Eid.
Higher-than-expected U.S. inflation has dampened expectations for a June interest rate cut by the U.S. Federal Reserve, while the European Central Bank (ECB) has predicted that it will start cutting interest rates soon as inflation cools in the euro zone. He suggested that it would be possible.
Indian stock market indexes ended on a solid note on Wednesday with buying across all sectors.
The Sensex rose 354.45 points or 0.47% to close at 75,038.15 and the Nifty 50 rose 111.05 points or 0.49% to close at 22,753.80.
“We expect the market to continue its upward trend going forward.The overall market is also likely to continue outperforming along with equity-specific movements on the back of strong domestic flows and healthy business updates.TCS on Friday All eyes will be on the technology sector as the company is set to announce its Q4 FY24 results in 2024,” 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 traded mixed on Friday, tracking Wall Street overnight as investors awaited trade data from China.
Japan’s Nikkei Stock Average rose 0.51% and TOPIX rose 0.53%. South Korea’s Kospi fell 0.38%, while the Kosdaq rose 0.62%. Hong Kong’s Hang Seng Index futures showed a weak start.
Read here: Asian stocks edge up as tech boosts US stocks: Market Wrap
Give a thoughtful gift today
Gift Nifty is trading near the 22,675 level, at a discount of nearly 130 points from Wednesday’s closing price of Nifty futures, indicating a gap downstart for the Indian stock market index.
wall street
U.S. stocks rebounded from an earlier session to end higher on Thursday, led by gains in tech stocks.
The Dow Jones Industrial Average fell 2.43 points, or 0.01%, to 38,459.08, and the S&P 500 index rose 38.42 points, or 0.74%, to 5,199.06. The NASDAQ Composite Index rose 271.84 points (1.68%) to close at 16,442.20.
Amazon’s stock hit a new high of $189.77 per share. The stock rose 1.7% to close at $189.05, surpassing its previous closing high of $186.57 in July 2021.
The FANG index of large momentum stocks rose 2.6%. CarMax stock plunged 9.2% and Globe Life stock plunged 53.1%. Rent the Runway stock soared 161.9% and Alpine Immun Sciences stock rose 36.9%.
US dollar, government bond yield
The dollar hovered near a five-month high of 105.26, and Treasury yields rose as bets on a deep U.S. interest rate cut this year were sharply scaled back.
The benchmark 10-year bond yield lasted at 4.5784%, below the previous five-month high of 4.5930%. The yield on the two-year note fell slightly to 4.9482%, after rising above 5% on Thursday for the first time since November.
us inflation
U.S. inflation in March was higher than expected due to gas and shelter costs. The US Consumer Price Index (CPI) rose 0.4% from the previous quarter. In the 12 months that ended in March, U.S. inflation rose 3.5% from a year earlier, the largest increase in six months.
Read here: US inflation rose 0.4% in March, beating Wall Street expectations. Expectations for Fed rate cut in June fade
U.S. Federal Reserve Minutes
Minutes from the U.S. Federal Reserve’s latest policy meeting show that the central bank is preparing to slow the pace of removing Treasury securities from its balance sheet in the short term, and policymakers They generally support cutting the recent pace by about half. Extend the process of reducing your holdings and reduce the risk of market troubles.
Read here: U.S. Federal Bank minutes reveal part of government debt due to balance sheet leakage
ECB policy
The European Central Bank (ECB) kept interest rates at record levels but signaled it may be preparing to cut them as inflation eases in the euro zone. Central banks in 20 countries have kept deposit rates unchanged at 4.0% since September.
Read here: ECB policy verdict: Key interest rate remains at 4%, record high level for 5 consecutive meetings, with possibility of rate cuts in the future
US producer price
US producer prices rose moderately in March, easing concerns about a resurgence of inflation.
The final demand producer price index (PPI) rose 0.2% last month, after rising an unrevised 0.6% in February. Economists polled by Reuters had expected the PPI to rise by 0.3%. PPI rose 2.1% in the 12 months to March after rising 1.6% in February.
Applying for unemployment insurance
The number of Americans filing new claims for unemployment benefits fell more than expected last week. First-time claims for state unemployment benefits fell by 11,000 for the week ending April 6, to a seasonally adjusted 211,000. Economists polled by Reuters had predicted 215,000 applications for the latest week.
crude oil price
Oil prices rose on Friday as the situation in the Middle East escalated.
Brent crude oil futures rose 0.38% to $90.08 per barrel, and US West Texas Intermediate crude oil futures rose 0.51% to $85.45.
(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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