Indian stock market benchmarks, the Sensex and Nifty 50, are likely to open higher on Friday. This comes despite mixed signals from global markets. Asian markets showed a split performance, while US stocks closed higher overnight.
Market Holiday and Previous Session
Indian exchanges, the BSE and NSE, remained closed on Thursday. This was due to a stock market holiday for municipal corporation elections in Maharashtra. On Wednesday, the markets extended their losses for a second straight session.
The Sensex dropped 244.98 points, or 0.29%, to end at 83,382.71. The Nifty 50 fell 66.70 points, or 0.26%, closing at 25,665.60. Persistent uncertainty over an India-US trade deal and continuous foreign fund outflows weighed on sentiment.
Expert View on Market Direction
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., shared his outlook. He said markets may trade sideways. Investors are watching ongoing corporate earnings, developments on the India-US trade deal, and cues for the upcoming Budget.
Key Global Cues for Indian Markets
Asian Markets Performance
Asian markets traded mixed on Friday. Japan's Nikkei 225 fell 0.52%, and the Topix declined 0.57%. South Korea's Kospi rose 0.26%, but the Kosdaq dropped 0.59%. Hong Kong's Hang Seng index futures pointed to a higher opening.
Gift Nifty Indicates Positive Start
Gift Nifty was trading around the 25,787 level. This represents a premium of nearly 68 points from the Nifty futures' previous close. It suggests a positive start for Indian stock indices.
Wall Street Rebounds
US stock markets ended higher on Thursday after two days of declines. Gains were led by banking and semiconductor stocks. The Dow Jones Industrial Average gained 292.81 points, or 0.60%, to 49,442.44.
The S&P 500 rose 17.87 points, or 0.26%, to 6,944.47. The Nasdaq Composite closed 58.27 points, or 0.25%, higher at 23,530.02. Notable stock movements included Nvidia up 2.10%, AMD up 1.93%, and BlackRock surging 5.9%.
US Jobless Claims Data
The number of Americans filing new claims for unemployment benefits fell unexpectedly last week. Initial claims dropped by 9,000 to a seasonally adjusted 198,000 for the week ended January 10. Economists had forecast 215,000 claims.
BMC Exit Poll Results
Most exit polls predict a smooth victory for the BJP-led Mahayuti alliance in the BMC polls. Polls by Axis My India, the JVC, and Sakal indicate a sweep for Maharashtra's ruling alliance in Mumbai's corporation. Voting for 29 municipal corporations, including BMC, was held on January 15. Vote counting will occur on January 16.
US Dollar Strengthens
The US dollar hit a six-week high as jobless claims fell. The dollar index rose 0.24% to 99.31, reaching 99.49, its highest since December 2. The euro fell 0.25% to $1.1613, hitting its lowest since December 2. The Japanese yen was down 0.02% against the dollar at 158.48 per dollar.
Gold and Silver Prices
Gold prices declined. Weaker-than-expected US jobless claims data boosted the dollar. US President Donald Trump's moderated tone on Iran further reduced safe-haven demand. Spot gold fell 0.1% to $4,614.93 per ounce. US gold futures for February delivery settled 0.3% lower at $4,623.70.
Crude Oil Prices Steady
Crude oil prices steadied after their biggest decline since June. The US indicated it would hold off on attacking Iran for now. Brent crude fell 4.15% to $63.76 a barrel. US West Texas Intermediate crude futures rose 0.25% to $59.34 a barrel after dropping 4.6% on Thursday.
