The Indian stock market’s benchmark indices, the Sensex and Nifty 50, are anticipated to open lower on Thursday, following mixed signals from global markets. Asian markets exhibited varied performance, whereas the US stock market registered gains overnight amidst increasing expectations of an interest rate cut by the US Federal Reserve next week.
In particular, market participants are keenly observing the two-day state visit of Russian President Vladimir Putin to India that commences today. The bilateral talks between President Putin and Prime Minister Narendra Modi are expected to be crucial, especially concerning potential agreements related to defense.
On Wednesday, the Indian stock indices closed lower, marking their fourth consecutive day of declines, primarily influenced by a weakening rupee. The Sensex edged down by 31.46 points, or 0.04%, concluding at 85,106.81, while the Nifty 50 dropped by 46.20 points, or 0.18%, finishing at 25,986.00. Analysts suggest that the market in the near term may fluctuate within a range, closely monitoring currency trends, cues from the Reserve Bank of India’s monetary policy, and developments in trade negotiations.
As for global market cues, Asian equities displayed a mixed pattern on Thursday following gains on Wall Street. MSCI’s broadest index tracking Asia-Pacific shares, excluding Japan, declined by 0.1%. The Nikkei 225 in Japan increased by 0.62%, while the Topix index rose by 0.33%. Conversely, South Korea’s Kospi index fell by 0.93%, although the Kosdaq managed a slight gain of 0.12%. Futures for Hong Kong’s Hang Seng Index suggested a positive start.
In the context of Indian markets, the Gift Nifty noted a trading level around 26,093, reflecting a discount of approximately 43 points from the previous close of Nifty futures and indicating a potential negative opening.
On Wall Street, the stock market concluded with upward momentum on Wednesday, driven by a series of economic data that heightened anticipations for an interest rate cut by the Federal Reserve in the upcoming week. The Dow Jones Industrial Average surged by 408.44 points, or 0.86%, to reach 47,882.90. The S&P 500 gained 20.35 points, or 0.30%, closing at 6,849.72, while the Nasdaq Composite increased by 40.42 points, or 0.17%, ending at 23,454.09.
In employment news, US private payrolls faced a substantial decline in November, experiencing its largest drop in over two and a half years with a reduction of 32,000 jobs, a stark contrast to the projected rise of 10,000 jobs as anticipated by economists. This follows an upwardly revised increase of 47,000 jobs in October.
The services sector in the United States maintained steady activity in November, with the Institute for Supply Management reporting its non-manufacturing purchasing managers index at 52.6, slightly unchanged from October’s 52.4.
Japanese government bond yields saw an uptick, with the 30-year yield climbing to a record high ahead of upcoming debt auctions. The 30-year yield reached 3.445%, while the benchmark 10-year yield rose to 1.905%, the highest since July 2007.
Meanwhile, the US dollar fell to a five-week low, with the US dollar index down by 0.4% at 98.878, marking its ninth consecutive drop. The Chinese yuan maintained stability in offshore trading.
Gold prices rose amid expectations of a US Fed rate cut, with gold trading 0.2% higher at $4,213.38 per ounce, while silver also saw an uptick of 0.1%, reaching $58.5415 per ounce, extending gains after hitting a record high of $58.98 the previous day.
