The Indian stock market is a dynamic and ever-changing entity that is influenced by a multitude of factors, both domestic and global. The domestic equity market indices, Sensex and Nifty 50, are key indicators of the health and performance of the Indian stock market. On Friday, these indices are expected to open higher following a rally in global markets and positive sentiment.
Asian markets have traded higher, mirroring the overnight rally in the US stock market. This surge in global markets comes after the latest initial jobless claims data in the US eased concerns of a recession. The positive momentum in global markets is likely to have a positive impact on the Indian stock market as well.
However, on Thursday, the Indian stock market benchmark indices ended lower after the Reserve Bank of India (RBI) announced its monetary policy. The RBI decided to keep the key policy repo rate unchanged at 6.5% for the ninth consecutive time, while maintaining the stance of ‚withdrawal of accommodation‘. This decision led to a decline in the Sensex and Nifty 50.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., commented on the market’s performance, stating that global concerns and volatility, coupled with continued Foreign Institutional Investor (FII) selling, have dampened market sentiments. He expects the market to consolidate and remain sideways in the absence of major domestic triggers, while global headwinds continue to induce volatility.
In terms of global market cues for the Sensex, Asian markets traded higher on Friday, with Japan’s Nikkei 225, South Korea’s Kospi, and Hong Kong’s Hang Seng index futures indicating a higher opening. Additionally, Gift Nifty was trading around 24,385 level, suggesting a gap-up start for the Indian stock market indices.
In the US, the stock market ended higher on Thursday, with the Nasdaq and S&P 500 rallying more than 2% each. Key stocks such as Nvidia, Advanced Micro Devices, Intel, Tesla, and Under Armour saw significant gains. The positive sentiment in the US market was further supported by a decrease in the number of Americans filing new applications for unemployment benefits.
US Federal Reserve policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, with their decisions guided by economic data rather than stock-market turmoil. Meanwhile, oil prices traded lower on Friday but were on track to gain more than 3% for the week.
In terms of currency and bond markets, the dollar index gained slightly, while Treasury yields saw a slight increase. Overall, the global market cues suggest a positive outlook for the Indian stock market on Friday.
Investors are advised to stay informed and consult with certified experts before making any investment decisions. The Indian stock market is influenced by a multitude of factors, and staying abreast of global market trends is crucial for making informed investment choices.