Asian markets traded higher, while the US stock market closed in the green overnight amid renewed hopes of interest rate cuts by the US Federal Reserve after weak employment data.
On Thursday, the Indian stock market headline indices witnessed fifth straight day of sell-off and closed sharply lower, with the Nifty 50 slipping below the 22,000 level.
The Sensex tanked 1,062.22 points, or 1.45%, to end at 72,404.17, while the Nifty 50 settled 345.00 points, or 1.55%, lower at 21,957.50.
“Continued FIIs selling and fear of not so favorable election outcome have dented market sentiments. With voter turnout ratio (65.68%) slightly lower than 2019 for the same seats (except Assam), investors have turned nervous about BJP’s expected seat count. We expect this volatility to continue in the near term in the absence of any major positive trigger. Now till Nifty holds below 22,000 zones, weakness could be seen towards 21,700,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Friday tracking overnight gains on Wall Street amid renewed rate cut hopes.
Japan’s Nikkei 225 rallied 1.52%, while the Topix gained 1.22%. South Korea’s Kospi surged 1% and the Kosdaq rose 0.97%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 22,155 level, a premium of nearly 80 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 10
Wall Street
The US stock market ended higher on Thursday with the Dow Jones Industrial Average extending gains for the seventh straight daily, after weekly jobless claims data raised hopes for interest-rate cuts by the US Federal Reserve.
The Dow Jones Industrial Average rallied 331.37 points, or 0.85%, to 39,387.76, while the S&P 500 gained 26.41 points, or 0.51%, to 5,214.08 points. The Nasdaq Composite ended 43.51 points, or 0.27%, higher at 16,346.27.
Tech megacap stocks, Apple, Amazon.com and Meta Platforms rose between 0.6% and 1% amid fall in Treasury yields.
Equinix shares surged 11.5%, while Arm Holdings shares declined 2.3% and Nvidia share price fell 1.8%. Roblox slumped 22.1% and Robinhood Markets shares dropped 3.1%. Spirit Airlines stock price jumped 12.9%.
Bank of England Policy
The Bank of England’s Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%. Economists polled by Reuters had mostly expected another 8-1 split to keep rates on hold.
Read here: BoE holds key interest rates at 16-year high-mark of 5.25%, moves closer to first cut since 2020
US Jobless Claims
The number of Americans filing new claims for unemployment benefits increased more than expected last week. Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000 for the week ended May 4, the Labor Department said. Economists polled by Reuters had forecast 215,000 claims in the latest week
Oil Prices
Crude oil prices traded higher on the signs of an improving Chinese economy.
Brent futures rose 0.38% to $84.20 a barrel, while US West Texas Intermediate crude grew 0.47% to $79.63.
Read here: Stocks, Bonds Gain After $25 Billion Treasury Sale: Markets Wrap
Dollar
The dollar weakened against most currencies after economic data showed more signs of softening in the US labor market, Reuters reported. The dollar index, which measures the greenback against a basket of currencies, fell 0.22% at 105.28.
(With inputs from Reuters)
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Published: 10 May 2024, 07:04 AM IST