Before the Market Opens: Indian markets are likely to open on a positive note on Friday following weakness in Asian markets after Wall Street ended lower in overnight deals. Meanwhile, Gift Nifty traded 50 points lower, indicating a weak start for benchmark Nifty. Let’s look at some key indicators before the market opens today:
On Thursday, US stocks experienced a decline, marked by continued losses in chipmakers and concerns among investors spurred by a significant rise in production prices. This rise in prices, particularly in commodities such as gasoline and food, has led to speculation that the Federal Reserve could delay its anticipated interest rate hikes. The Dow Jones Industrial Average fell by 137.66 points, equivalent to a decrease of 0.35%, to close at 38,905.66. Similarly, the S&P 500 saw a loss of 14.83 points, down 0.29% to reach 5,150.48, while the Nasdaq Composite fell 49.24 points, or 0.3%, to close at 16,128.53.
Asian stocks fell on Friday, tracking technical declines on Wall Street overnight after warmer-than-expected US inflation hit back bets on how soon and often the Federal Reserve will cut interest rates. US benchmark bond yields held near the 4.3% level they reached on Thursday for the first time this month, after their biggest jump in three months. The dollar advanced to its highest since March 5 against a basket of major peers. Hong Kong’s Hang Seng slipped more than 1%, as did South Korea’s Kospi. Mainland Chinese blue chips, however, were little changed, despite the central bank’s decision to forgo any easing to keep the medium-term lending rate unchanged on Friday. Japan’s Nikkei decreased 0.3%.
On Thursday, the Indian stock market indices rebounded sharply to finish higher led by buying in metals and energy stocks with mid and small cap indices outperforming the fronts. The Sensex gained 335.39 points, or 0.46%, to close at 73,097.28, while the Nifty 50 settled 148.95 points, or 0.7%, higher at 22,146.65.
At 8:15 am, Gift Nifty was trading 50 points lower at 22,180, indicating a weak opening for the Indian markets.
Oil prices fell on Friday, but were on track to gain nearly 4% for the week, as sharp declines in US crude and fuel prices, drone strikes against Russian refineries and an increase in energy demand forecasts lifted prices. Brent crude oil futures for May fell 41 cents, or 0.5%, to $85.01 a barrel at 1234 GMT, after breaching $85 a barrel for the first time since November on Thursday. US West Texas Intermediate (WTI) crude for April fell 32 cents, or 0.4%, to $80.94.
Gold prices were headed for their first weekly drop in four on Friday as surprisingly warm US inflation readings suggested the Federal Reserve could reduce the number of rate hikes this year and possibly push the first cut beyond June. Spot gold was up 0.1% at $2,162.66 an ounce, as of 0144 GMT, but on track to post a weekly drop of more than 0.5%, its first since mid-February. US gold futures were steady at $2,167.00.
U.S. government bond yields climbed to the highest levels in more than a week after producer price data weighed on the outlook for interest rate hikes by the Federal Reserve this year. The yield on the benchmark 10-year note rose 10 basis points (bps) to 4.29%, the highest level since March 1, while the 30-year bond yield also rose nearly 10 bps to 4.44% . Meanwhile, the US dollar rose boosted by warmer-than-expected manufacturing price data. The dollar index, which measures the currency against six major peers, was last up 0.6% at 103.36.
The rupee depreciated 3 paise to settle at 82.84 against the US dollar on Thursday amid a strong greenback against major rivals overseas and rising crude oil prices. However, a firm trend in domestic equity markets supported the local currency and limited the fall, forex traders said. At the interbank foreign exchange market, the local unit opened slightly weak at 82.84 and witnessed an intra-day low of 82.89 and a high of 82.82 against the greenback during the session.
Foreign institutional investors (FIIs) sold stocks net ₹1,356.29 crore, while domestic institutional investors (DIIs) bought ₹139.47 crore shares on March 14, provisional data from the NSE showed.
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Published: 15 Mar 2024, 08:34 IST