As market sentiment sways under international pressures, the Indian stock market is bracing for a downward opening on Friday. The Sensex and Nifty 50 indices are anticipated to reflect this trend, influenced by global market dynamics and concerns surrounding trade tariffs. The Asian markets experienced a decline, paralleling a drop in the US stock market after President Donald Trump introduced new trade tariffs that have unsettled investors.
Recent Performance of Indian Indices
On Thursday, the Indian stock market was buoyant, with both benchmark indices making significant gains. The Sensex surged by 317.93 points (0.41%), settling at 77,606.43, while the Nifty 50 climbed 105.10 points (0.45%) to reach 23,591.95. Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, remarked, “The Nifty 50 maintained its recovery despite fluctuating investor sentiments driven by tariff anxieties. As we look ahead, our focus shifts to key upcoming events, including US inflation data and tariff announcements. Technical analysis indicates that the Nifty faces significant resistance near the 200-day moving average at approximately 24,081.”
Global Market Influences
Decline in Asian Markets
Asian equities were down on Friday, mirroring the overnight declines seen on Wall Street due to fears of impending reciprocal tariffs. Key market indices reported as follows:
- Japan’s Nikkei 225: -1.41%
- Topix: -1.55%
- South Korea’s Kospi: -1.54%
Futures for Hong Kong’s Hang Seng also indicated a bearish start.
Gift Nifty Insights
The Gift Nifty, an indicator for Indian market sentiment, traded around 23,758, showing a nearly 20-point discount from the previous close of the Nifty futures. This suggests a subdued commencement for Indian stock indices.
Overview of the US Market
The US stock market ended lower on Thursday amid concerns regarding President Trump’s latest tariff announcements. Key indices performed as follows:
- Dow Jones Industrial Average: -0.37% to 42,299.70
- S&P 500: -0.33% to 5,693.31
- Nasdaq: -0.53% to 17,804.03
Notable shifts in major stocks included:
- General Motors: -7%
- Ford: -3.9%
- Aptiv and BorgWarner: -5% each
- Tesla: +0.4%
- Apple: +1.05%
- Dollar Tree: +11%
Economic Indicators from the U.S.
The US GDP saw an upward revision, growing at a 2.4% annualized rate for the fourth quarter, slightly higher than the earlier estimate of 2.3%. The latest figures from the Bureau of Economic Analysis also indicated a rise in corporate profits, marking a pivotal moment for the economy.
Jobless Claims Update
Recent data revealed that initial jobless claims fell to 224,000, aligning closely with economists’ predictions and indicating stability in the job market.
Gold Prices Surge
In light of escalating concerns about a global trade conflict, gold prices reached a record high, driven by safe-haven demand. Spot gold climbed to $3,061.72 per ounce, after peaking at $3,063.20 during the session, representing a 1.3% increase for the week.
Tokyo’s Inflation Trends
In Japan, the core consumer inflation in Tokyo rose to 2.4% year-over-year in March, surpassing market expectations. This uptick reflects ongoing inflationary pressures in the region.
Currency Market Overview
The US dollar is set for a stable week, while the euro is on track for its largest quarterly gain in over a year, up more than 4% since early 2025. The yen showed slight strength, approaching a 4% quarterly increase at 151.19 per dollar.
The markets are in a state of flux as they navigate through these complex global economic factors. Investors are advised to stay informed and consider the implications of these developments on their portfolios.
