The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday, supported by short-covering after steep losses in the previous session and mixed global cues.
Asian markets traded mixed, while the US stock market ended lower overnight amid inflation concerns triggered by soaring crude oil prices due to the US-Iran war, denting hopes of interest rate cuts.
On Thursday, the Indian stock market witnessed a sharp sell-off, snapping its three-day streak of gains.
The Sensex plunged 2,496.89 points, or 3.26%, to close at 74,207.24, while the Nifty 50 dropped 775.65 points, or 3.26%, to settle at 23,002.15.
“Markets appear to be in a phase of heightened fragility, where sentiment is being driven by rapidly evolving geopolitical developments and a sharp rise in crude prices. Given the intensifying tensions around energy infrastructure in West Asia, we remain cautious in the near term and expect volatility to persist,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
Here are the key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Friday following overnight losses on Wall Street amid broad-based selling across asset classes. The MSCI Asia Pacific Index rose 0.3% after losing 2.6% in the previous session. Japan’s markets were closed for a public holiday. South Korea’s Kospi rose nearly 1%, while the Kosdaq gained 0.94%. Hong Kong’s Hang Seng futures indicated a lower opening.
Gift Nifty Today
Gift Nifty was trading around 23,177, a premium of nearly 122 points over the previous close of Nifty futures, indicating a positive start for Indian benchmark indices.
Wall Street
The US stock market ended lower on Thursday as investors remained cautious about the outlook for interest rate cuts amid inflation worries driven by rising oil prices.
The Dow Jones Industrial Average fell 0.44% to 46,021.43, the S&P 500 declined 0.27% to 6,606.49, and the Nasdaq slipped 0.28% to 22,090.69.
Among stocks, Nvidia fell 1.02%, Apple eased 0.39%, Micron Technology dropped 3.8%, and Tesla declined 3.2%, while AMD gained 2.91%.
US-Iran War
Iran intensified attacks on oil and gas facilities in the Gulf in retaliation for an Israeli strike on a key gas field. US President Donald Trump warned of a strong response if attacks continue, while Israeli Prime Minister Benjamin Netanyahu said Iran would no longer be allowed to enrich uranium or develop ballistic missiles. Israel also pledged to refrain from further strikes on a key Iranian gas facility.
ECB Policy
The European Central Bank kept its key interest rate unchanged at 2% and warned that the war in Iran was clouding the outlook for growth and inflation in the eurozone. It said it would continue to monitor the impact of the conflict on inflation, including energy prices, and economic growth.
Bank of England Policy
The Bank of England kept its benchmark rate unchanged at 3.75%, with policymakers saying they were “ready to act” to address risks arising from the Middle East conflict. The Monetary Policy Committee voted 9–0 to hold rates. It also warned that inflation could rise to 3.5% over the next two quarters.
China LPR
China left its benchmark lending rates unchanged for the 10th consecutive month in March. The one-year loan prime rate (LPR) remained at 3.0%, while the five-year LPR was held at 3.5%.
US Jobless Claims
The number of Americans filing new applications for unemployment benefits unexpectedly fell last week. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 205,000 for the week ended 14 March. Economists polled by Reuters had forecast 215,000 claims for the latest week.
Gold Rate Today
Gold prices were headed for their biggest weekly decline in six years as rising oil prices dampened expectations of interest rate cuts. Gold was little changed at $4,640.85 an ounce and is down nearly 8% this week. Silver slipped towards $72 an ounce, down about 10% for the week.
Crude Oil Prices
Crude oil prices eased after hitting their highest levels since July 2022. Brent crude fell 1.01% to $107.57 a barrel, while US West Texas Intermediate (WTI) crude declined 1.74% to $93.89.
(With inputs from Reuters)