The Indian stock market is anticipated to open with a steady tone on Friday, driven by the optimistic signals from global markets, particularly from the US. Despite a public holiday observed on Thursday for Maharashtra Day, the momentum from global trading, especially in Asia, is likely to influence local indices. The Sensex and Nifty 50, key gauges of Indian equities, are expected to reflect a measured start, as indicated by the Gift Nifty.
Global Market Influences on Indian Indices
The Asian stock markets displayed positive movement on Friday, buoyed by gains from Wall Street. Reports of China reassessing its trade discussions with the US contributed to this upward trend. Here are some notable performances from Asian markets:
- Japan’s Nikkei 225: Up by 1.24%
- Topix Index: Increased by 0.67%
- South Korea’s Kospi: Remained relatively stable
- Kosdaq: Gained 0.60%
- Hong Kong’s Hang Seng Index: Futures suggest a potential decrease at the open
Nifty 50 and Sensex Performance
On Wednesday, the Indian stock market experienced slight declines, with the Nifty 50 maintaining a crucial support level around 24,300. The Sensex concluded the session down by 46.14 points, or 0.06%, finishing at 80,242.24. Meanwhile, the Nifty 50 dipped marginally by 1.75 points, closing at 24,334.20.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that the Nifty 50 is currently navigating a consolidation phase, facing resistance at approximately 24,400. He emphasized that strategic buying across various sectors is providing a buffer against further declines. Investors are advised to adopt a stock-specific trading strategy, especially as attention shifts to global economic indicators, including US GDP figures and corporate earnings.
Key Economic Indicators and Their Impacts
US Market Performance: The US stock market saw gains due to robust earnings from major corporations like Microsoft and Meta, alleviating fears regarding artificial intelligence investment. Key statistics include:
- Dow Jones: Rose by 83.60 points to 40,752.96
- S&P 500: Increased by 35.08 points to 5,604.14
- Nasdaq Composite: Climbed by 264.40 points to 17,710.74
Microsoft’s shares surged by 7.6%, while Meta’s stock rose 4.2%. However, some companies, like Eli Lilly and Qualcomm, faced significant declines.
Trade Talks and Economic Data
Recent developments have shed light on the US-China trade dialogue, with China’s commerce ministry stating that negotiations on tariffs are being evaluated. This opens the door for potential discussions aimed at resolving trade issues.
US Manufacturing PMI: The manufacturing sector in the US continued to face challenges, with the Institute for Supply Management reporting a decline to 48.7 in April, marking a five-month low.
Jobless Claims: The latest data revealed a rise in initial unemployment claims, which climbed to 241,000, surpassing forecasts.
Gold and Currency Market Overview
Gold prices are facing downward pressure, with a projected loss of over 2% this week, marking the most significant weekly decline since February. Currently, the spot gold price stands at $3,240.34 per ounce.
The US dollar is on track for a third consecutive weekly gain, reflecting positive developments in trade talks. As of now, the dollar index remains stable, trading at 145.53 yen and $1.1290 against the euro.
In summary, as the Indian stock market gears up for Friday, attention will be firmly on global economic signals and how they may shape trading strategies moving forward. Investors are encouraged to stay informed and consider stock-specific opportunities that may arise.
